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FEES 4.3 Periodic fee payable by firms (other than AIFM qualifiers, ICVCs and UCITS qualifiers)13

FEES 4.3.1RRP

The periodic fee payable by a firm (except an AIFM qualifier,13 ICVC or a UCITS qualifier) is:

  1. (1)

    each periodic fee applicable to it calculated in accordance with FEES 4.3.3 R, using information obtained in accordance with FEES 4.4; plus7

    7
  2. (1A)

    any periodic fee applicable to it calculated in accordance with FEES 4.3.3A R using information relating to its UK business obtained in accordance with FEES 4.4 (or by other means in the case of the Bank of England); less7

  3. (2)

    any deductions from the periodic fee specified in Part 2 of FEES 4 Annex 2AR 17or Part 7 of27 FEES 4 Annex 11R17. 7

    272727
FEES 4.3.2GRP
  1. (1)

    The amount payable by each firm will depend upon the category (or categories) of regulated activities or payment services 7it is engaged in (fee-blocks)and whether it is issuing electronic money,10 and on the amount of business it conducts in each category (tariff base). The fee-blocks and tariffs are identified in FEES 4 Annex 1AR 17 (and guidance on calculating certain of the tariffs is at FEES 4 Annex 12 G and 17FEES 4 Annex 13G15) 17while 27 FEES 4 Annex 2AR sets 17 out the tariff rates for the relevant fee year.26 In the case of firms that provide payment services and/or issue electronic money10, the relevant fee blocks, tariffs and rates are set out in FEES 4 Annex 11R17.

    27827267
  2. (2)

    [deleted]22

    710710777

10Calculation of periodic fee for fee-paying payment service providers, CBTL firms, data reporting services providers and fee-paying electronic money issuers

FEES 4.3.3RRP

The periodic fee referred to in FEES 4.3.1 R is (except in relation to the Society,10 fee-paying payment service providers, CBTL firms,20 fee-paying electronic money issuers and data reporting services providers20) 20 calculated as follows:

107
  1. (1)

    identify each of the tariffs set out in Part 1 of FEES 4 Annex 2AR 1727 which apply to the business of the firm for the period specified in that annex;

    27
  2. (2)

    for each of the applicable27 tariffs, calculate the sum payable in relation to the business of the firm for that period;

    279
  3. (3)

    add together the amounts calculated under (2)17;

    279
  4. (4)

    work out whether an A.0, or 17, CC.0 minimum fee is payable under Part 2 of FEES 4 Annex 2AR 17and if so how much (except that that minimum fee is not payable again by a firm whose permission is extended if the fee was already payable before the extension)27;9

    927
  5. (4A)

    27work out whether an AP.0 FCA prudential fee is payable under Part 2 of FEES 4 Annex 2AR and if so how much;

  6. (4B)

    [deleted] 17

    27
  7. (5)

    9add together the amounts calculated under (3), (4) and (4A) 17; and

    27
  8. (6)

    9apply any applicable payment charge specified in FEES 4.2.4 R, provided that:

    1. (a)

      for payment by direct debit, successful collection of the amount due is made at the first attempt by the FCA (in its own capacity and, if applicable, in its capacity as collection 17agent for the PRA)26; or

      26
    2. (b)

      for payment by credit transfer, the amount due is received by the FCA (in its own capacity and, if applicable, in its capacity as collection 17agent for the PRA)26 on or before the due date.

      26

    19[Note: Transitional provisions apply to FEES 4.3.3R for firms in activity groups A.3 and A.4 – see FEES TP 13]

107Calculation of periodic fee for fee-paying payment service providers, CBTL firms, data reporting services providers (other than incoming data reporting services providers) and fee-paying electronic money issuers

FEES 4.3.3ARRP

Modification for firms with new or extended permissions

FEES 4.3.4GRP
  1. (1)

    A firm which becomes authorised or registered 7during the course of a fee year26 will be required to pay a proportion of the periodic fee which reflects the proportion of the year for which it will have a permission or the right to provide particular payment services or the right to issue electronic money107- see FEES 4.2.5 G and FEES 4.2.6 R.

    26
  2. (2)

    Similarly a firm which extends its permission or its right to provide particular payment services 7so that its business then falls within additional fee blocks will be required to pay a further periodic fee under this section for those additional fee blocks, but discounted to reflect the proportion of the year for which the firm has the extended permission or payment services activity 7 - see FEES 4.2.6 R and FEES 4.2.7 R.

  3. (3)

    [deleted]22

    1010
  4. (4)

    [deleted]23

    526262626

Amount payable by the Society of Lloyd's

FEES 4.3.5RRP

The periodic fee referred to in FEES 4.3.1 R in relation to the Society is specified against its name in 27 FEES 4 Annex 2AR 17.

27

Time of payment

FEES 4.3.6RRP
  1. (1)

    [deleted]17

    272712112727111127
  2. (1A)

    [deleted] 17

    27
  3. (1B)

    [deleted] 17

    27
  4. (1C)

    17If a person meets either of the conditions in (1D) it must pay the FCA the fee in (1E).

  5. (1D)

    17A person meets the conditions referred to in (1C) if:

    1. (a)

      its periodic fee for the previous fee year was at least £50,000 and it is:

      1. (i)

        an FCA-authorised person; or

      2. (ii)

        a designated professional body; or

      3. (iii)

        a recognised investment exchange; or

      4. (iv)

        a regulated covered bond issuer; or

    2. (b)

      it is a PRA-authorised person and its combined FCA and PRA periodic fees for the previous fee year were at least £50,000.

  6. (1E)

    17The fee in (1C) is:

    1. (a)

      an amount equal to 50% of the FCA periodic fee payable for the previous fee year by:

      1. (i)

        118 April; or

      2. (ii)

        if later, within 30 days of the date of the invoice, in the fee year to which the sum due under FEES 4.2.1R relates; and

    2. (b)

      the balance of the FCA periodic fee due for the current fee year by:

      1. (i)

        1 September; or

      2. (ii)

        if later, within 30 days of the date of the invoice, in the fee year to which that sum relates.

    [Note: If the firm is a PRA-authorised person that meets the condition at FEES 4.3.6R(1)(D)(b), the firm will also pay its PRA periodic fees in two tranches as specified in the Fees Part of the PRA Rulebook20 . The FCA, acting as the PRA’s collection agent, will collect these fees.]

  7. (2)

    If the firm's, designated professional body's, recognised investment exchange's, 12or regulated covered bond issuer's 11periodic fee for the previous fee year26 was less than £50,000, it11 must pay the periodic fee due in full by 1 August or, if later, within 30 days of the date of the invoice27 in the fee year26 to which that sum relates.

    261126
  8. (3)

    If a firm has applied to cancel its Part 4A permission26 in the way set out in SUP 6.4.5 D (Cancellation of permission), or its status as a payment institution under regulation 10 of the Payment Services Regulations (Cancellation of authorisation) or as regulation 10 is applied by regulation 14 of the Payment Services Regulations (Supplementary provisions), or its status as an electronic money issuer under regulation 10 of the Electronic Money Regulations (Cancellation of authorisation) or as regulation 10 is applied by regulation 15 of the Electronic Money Regulations (Supplementary provisions), 10or its registration as a CBTL firm under article 13(c) of the20 MCD Order 16 or its authorisation as a data reporting services provider under regulation 11 of the DRS Regulations,20 then (1C), (1D) and (1E)24 do not apply but it must pay the total amount due when the application is made.

    26
  9. (4)

    If the FCA 17 has exercised its own-initiative powers to cancel a firm's2 Part 4A permission26, then (1C), (1D) and (1E) 24 do not apply but the firm must pay the total amount due immediately before the cancellation becomes effective.

    2626226
  10. (4A)

    If the FCA has cancelled a firm's authorisation or registration under regulation 10 of the Payment Services Regulations or regulation 10 of the Electronic Money Regulations 10 or its registration under regulation 10 as applied by regulation 14 of the Payment Services Regulations or its registration under regulation 10 as applied by regulation 15 of the Electronic Money Regulations, or its registration under article 13 (except under article 13(c)) of the MCD Order 16, or its authorisation as a data reporting services provider under regulation 11 or 12 of the DRS Regulations,20 10 then (1C), (1D) and (1E)24 do not apply but the firm must pay the total amount due immediately before the cancellation becomes effective.7

  11. (5)

    [deleted]27

    627
  12. (5A)

    [deleted] 17

    14
  13. (6)

    5Paragraphs (1C), (1D) and (1E)24 do not apply to any periodic fee in relation to a firm's permission for operating a multilateral trading facility or operating an organised trading facility20 and such a fee is not taken into account for the purposes of the split in (1E)24. Instead any fee for this permission is payable:23

    1. (a)

      on 1 August; or 23

    2. (b)

      30 days from the date of the invoice in the case of a firm which receives permission to be operating a multilateral trading facility or to be operating an organised trading facility or whose permission is extended to include either activity in the course of the relevant financial year.23

    20
  14. (7)

    24Where the FCA grants a person’s application for annulment of a cancellation or variation of Part 4A permission under Schedule 6A to the Act and the person falls within, as the case may be, (1C) or (2) and:

    1. (a)

      the annulment takes effect after 1 April or after the invoice referred to in (1E)(a)(ii) has been issued, then (1C), (1D) and (1E) do not apply, but the person must, where the annulment takes effect after 1 April but before 1 September, pay:

      1. (i)

        an amount equal to 50% of the FCA periodic fee payable for the previous fee year on the date on which the annulment takes effect; and

      2. (ii)

        the balance of the FCA periodic fee due for the current fee year by 1 September or, if later, within 30 days of the date of the invoice, in the fee year to which that sum relates; or

    2. (b)

      the annulment takes effect after 1 September or after the invoice referred to in (1E)(b)(ii) has been issued, then (1C), (1D) and (1E) do not apply, but the person must pay the total amount due on the date on which the annulment takes effect; or

    3. (c)

      the annulment takes effect after 1 August or after the invoice referred to in (2) has been issued, then (2) does not apply, but the person must pay the periodic fee in full on the date on which the annulment takes effect.

Groups of firms

FEES 4.3.7RRP

A firm which is a member of a group may pay all of the amounts due from other firms in the same group under FEES 4.2.1 R, if:

  1. (1)

    it notifies the FCA (in its own capacity and, if applicable, in its capacity as collection 17agent for the PRA)26 in writing of the name of each other firm within the group for which it will pay; and

    26
  2. (2)

    it pays the fees, in accordance with this chapter, as a single amount as if that were the amount required from the firm under FEES 4.2.1 R.

FEES 4.3.8GRP

A notification under FEES 4.3.7R (1) should be made in accordance with SUP 15.7 (Form and method of notification).

FEES 4.3.9GRP

If the payment made does not satisfy in full the periodic fees payable by all of the members of the group notified to the FCA26 under FEES 4.3.7 R, the FCA (in its own capacity and, if applicable, in its capacity as collection 17agent for the PRA)26 will apply the sum received among the firms which have been identified in the notification given under FEES 4.3.7R (1) in proportion to the amounts due from them. Each firm will remain responsible for the payment of the outstanding balance attributable to it.

2626
FEES 4.3.10GRP

If a firm pays its fees through an agent outside the scope of FEES 4.3.7 R, the firm is responsible for ensuring that the FCA (in its own capacity and, if applicable, in its capacity as collection 17agent for the PRA)26 is informed that the sum being paid is for that firm's periodic fees.

26
107
FEES 4.3.11GRP
FEES 4.3.12RRP

[deleted]22

205
FEES 4.3.12ARRP

[deleted]22

1010

Firms Applying to Cancel or Vary Permission Before Start of Period

FEES 4.3.13RRP
  1. (1)

    If:

    1. (a)

      a firm:20

      1. (i)

        makes an application to vary its permission (by reducing its scope), or cancel it, in the way set out in SUP 6.3.15D(3) (Variation of permission) and SUP 6.4.5D (Cancellation of permission); or20

      2. (ii)

        applies to vary (by reducing its scope) or cancel its authorisation or registration (regulation 8 and 10(1) of the Payment Services Regulations including as applied by regulation 14 of the Payment Services Regulations); or20

      3. (iii)

        applies to cancel its authorisation or registration (regulation 10 and 12 of the Electronic Money Regulations including as applied by regulation 15 of the Electronic Money Regulations); or20

      4. (iv)

        applies for revocation of its registration under article 13(c) of the MCD Order; or20

      5. (v)

        applies to vary (by reducing its scope) or cancel its authorisation as a data reporting services provider under regulation 11 and 12 of the DRS Regulations; or20

      1610771
    2. (aa)

      an issuer makes an application for de-listing; or20

    3. (ab)

      a sponsor notifies the FCA of its intention to be removed from the list of approved sponsors; and20

    4. (b)

      the firm, issuer or sponsor1 makes the application or notification 1referred to in (a), (aa) or (ab) respectively20, before the start of the fee year27 to which the fee relates;

      27

    FEES 4.2.1 R applies to the firm as if the relevant variation or cancellation of the firm's permission or authorisation or registration under the Payment Services Regulations, MCD Order, DRS Regulations20 or the Electronic Money Regulations10, 7 de-listing or removal from the list of approved sponsors,1 took effect immediately before the start of the fee year27 to which the fee relates.

    281627
  2. (2)

    But (1) does not apply if, due to the continuing nature of the business, the variation, cancellation, de-listing or removal1 is not to take effect on or before 30 June of the fee year to which the fee relates27.

    127
FEES 4.3.14GRP

The due dates for payment of periodic fees are modified by FEES 4.3.6R(3), FEES 4.3.6R(4), 24 FEES 4.3.6R(4A) and FEES 4.3.4R(7),24 respectively where:20

  1. (1)

    a firm has applied to cancel its:20

    1. (a)

      Part 4A permission; or20

    2. (b)

      its authorisation or registration under the Payment Services Regulations or the Electronic Money Regulations; or20

    3. (c)

      its registration as a CBTL firm under article 13(c) of the MCD Order; or20

    4. (d)

      authorisation under regulation 11 of the DRS Regulations; or20

  2. (2)

    the FCA has exercised its:20

    1. (a)

      own-initiative powers to cancel a firm's Part 4A permission; or20

    2. (aa)

      24power to annul the cancellation or variation of a person’s Part 4A permission under Schedule 6A to the Act; or

    3. (b)

      powers under regulation 10 (Cancellation of authorisation), including as applied by regulation 14 (Supplementary provisions) of the Payment Services Regulations to cancel a firm's authorisation or registration under the Payment Services Regulations; or20

    4. (c)

      powers under regulation 10 (Cancellation of authorisation), including as applied by regulation 15 (Supplementary provisions) of the Electronic Money Regulations or regulation 11 of the DRS Regulations; or 20

    5. (d)

      powers under article 13 (Revocation of registration), excluding article 13(c), of the MCD Order.20

710161777171710167777

Firms acquiring businesses from other firms

FEES 4.3.15R

21[deleted]

FEES 4.3.16R
  1. (1)

    [deleted]9

  2. (2)

    [deleted]9

  3. (3)

    [deleted]9

FEES 4.3.17RRP
  1. (1)

    21This rule applies if:

    1. (a)

      a firm (A)

      1. (i)
        1. (A)

          acquires all or a part of the business of another firm (B), whether by merger, acquisition of goodwill or otherwise; and

        2. (B)

          would be required to pay a periodic fee in the fee year in which the acquisition takes place; or

      2. (ii)

        becomes authorised or registered as a result of another firm’s (B) simple change of legal status (as defined in FEES 3 Annex 1R Part 6); and

    2. (b)

      had that acquisition or simple change of legal status (or any associated cancellation) not taken place, a periodic fee would have been payable by B in that same fee year.

  2. (2)

    If, before the date of acquisition or simple change of legal status, B had paid any periodic fee that would have become payable by it in that fee year, FEES 4.2.1R and FEES 4.2.7ER to FEES 4.2.7KR will not apply to A in relation to the business of B.

  3. (3)
    1. (a)

      If, before the date of acquisition or simple change of legal status, B had not paid any periodic fee that would have become payable by it in that fee year, FEES 4.2.1R and FEES 4.2.7ER to FEES 4.2.7KR will apply to A in relation to the business of B.

    2. (b)

      Periodic fees that would have become payable in that fee year include those which may have been dis-applied under FEES 4.3.13R.

  4. (4)

    Regardless of A’s valuation date:

    1. (a)

      if the acquisition or simple change of legal status takes place before B’s valuation date, then A must report the tariff data for, and pay fees or levies on, the transferred business up to the date of the transfer; and

    2. (b)

      if the acquisition or simple change of legal status takes place after B’s valuation date and B has not paid the relevant fees or levies, then the data should be reported and fees be paid by A as if the transfer had taken place immediately before the valuation (if B continues to be authorised, it should strip the transferred business out of its report).

Cancellation and variation of Part 4A permission under Schedule 6A

FEES 4.3.18G

24The FCA will not refund periodic fees if, after the start of the period to which they relate, a person’s Part 4A permission is cancelled under Schedule 6A or the person’s Part 4A permission is varied, reducing its permission under Schedule 6A(but see FEES 2.3 (Relieving Provisions)).

Effect on periodic fees of annulment of cancellation or variation of permission under Schedule 6A

FEES 4.3.19G

24Schedule 6A to the Act sets out a procedure to enable the FCA to cancel or vary the Part 4A permission of a person who it appears to the FCA is not carrying on a regulated activity. Paragraph 5 of Schedule 6A to the Act sets out a procedure for annulment of cancellation or variation of Part 4A permission in specified circumstances. It is for the FCA to decide whether it is just and reasonable to annul the decision to cancel a person’s permission or vary the permission to reduce its scope. Where the FCA grants an application for annulment, paragraph 6 of Schedule 6A sets out its effect. In particular, the cancellation or variation of Part 4A permission is treated as if it had never taken place. As a result of annulment, the periodic fees for the period during which the person’s Part 4A permission was cancelled or varied apply to the person.