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FEES 4.1 1Introduction

Application

FEES 4.1.1 R

1This chapter applies to every person set out in FEES 1.1.2R (2).

Purpose

FEES 4.1.2 G RP

The purpose of this chapter is to set out the requirements on firms and others to pay periodic fees and transaction reporting fees in certain circumstances.

Background

FEES 4.1.3 G RP

Most of the detail of the periodic fees that are payable by firms is set out in FEES 4 Annexes 1-8. Most of the provisions of the Annexes will vary from one financial yearto another. Accordingly fresh FEES 4 Annexes will come into force, following consultation, for each financial year.

FEES 4.1.4 G RP
  1. (1)

    The periodic fees for collective investment schemes reflect the estimated costs to the FSA of considering proposals to change regulated collective investment schemes, maintaining up to date records about them, and related policy work.

  2. (2)

    The provision of the Transaction Reporting System facilities for firms reporting transactions under SUP 17 incurs costs to the FSA. These costs depend upon the amount the facility is used. Accordingly the income which the FSA receives from these transactions reporting fees will be set and accounted for separately from the fee-block tariffs, and are set out in FEES 4 Annex 3.

    2
FEES 4.1.5 G RP

The Society of Lloyd's, which has permission under section 315(2) of the Act (The Society: authorisation and permission), has its own fee block.

FEES 4.1.6 G

The FSA will allocate penalties received for the benefit of relevant fee payers by way of a permitted deduction specified in FEES 4 Annex 2, or in the case of listed issuers, as notified to issuers annually, for the relevant year.

FEES 4.1.7 G RP

In the case of periodic fees for firms, fees are calculated individually for each firm, but they may be paid on a group basis, if the group so wishes.

FEES 4.2 Obligation to pay periodic fees

General

FEES 4.2.1 R RP

A person shown in column (1) of the table in FEES 4.2.11 R as the relevant fee payer must pay each periodic fee applicable to it, calculated in accordance with the provisions referred to in column (2) of thattable, as adjusted by any relevant provision in this chapter:

  1. (1)

    in full and without deduction (unless permitted or required by a provision in FEES); and

  2. (2)

    on or before the date given in column (3) of that table, unless FEES 4.2.10 R applies.

FEES 4.2.2 G RP

A relevant fee payer will be required to pay a periodic fee for every year during which they have the status in column 1 of the table in FEES 4.2.11 R (or in relation to collective investment schemes, for every year during which it is a regulated collective investment scheme) subject to any reductions or exemptions applicable under this chapter. If a person is the relevant fee payer for more than one status listed in column 1 of the table in FEES 4.2.11 R (or in relation to collective investment schemes, the relevant fee payer for more than one regulated collective investment scheme) he will be required to pay a fee in relation to each.

  1. (1)

    A relevant fee payer will be required to pay a periodic fee for every year during which they have the status in column 1 of the table in FEES 4.2.11 R (or in relation to collective investment schemes, for every year during which it is a regulated collective investment scheme) subject to any reductions or exemptions applicable under this chapter. If a person is the relevant fee payer for more than one status listed in column 1 of the table in FEES 4.2.11 R (or in relation to collective investment schemes, the relevant fee payer for more than one regulated collective investment scheme) he will be required to pay a fee in relation to each.

  2. (2)

    A recognised body may also have obligations to pay fees to the FSA under other rules arising from legislation other than the Act. For example a recognised body may have an obligation to pay a fee as an approved operator of a relevant system under the Uncertificated Securities Regulations 1995 (SI 1995/3272).

FEES 4.2.3 G RP

The FSA will issue invoices to firms and other fee payers and expects to do so at least 30 days before the dates on which payments fall due under FEES 4.2.1 R.

Method of payment

FEES 4.2.4 R RP
  1. (1)

    Unless (2) applies, a periodic fee must be paid using either direct debit, credit transfer (BACS/CHAPS), cheque, switch or by credit card (Visa/Mastercard only). Any payment by permitted credit card must include an additional 2% of the sum paid.1

    1
  2. (2)

    The FSA does not specify a method of payment for a recognised body or a designated professional body.

FEES 4.2.5 G RP

The FSA expects a recognised body or a designated professional body will generally pay their respective fees by electronic credit transfer.

Modifications for persons becoming subject to periodic fees during the course of a financial year

FEES 4.2.6 R
  1. (1)

    Unless (2) applies, if the event, as described in column 4 of the table in FEES 4.2.11 R, giving rise to, or giving rise to an increase in, the fee payable in FEES 4.2.1 R, occurs on or after 1 July of the relevant financial year, the periodic fee required under FEES 4.2.1 R is modified for:

    1. (a)

      firms (other than ICVCs and UCITS qualifiers) in accordance with FEES 4.2.7 R and FEES 4.2.8 R;

    2. (b)

      for all other fee payers in column (1) of the table in FEES 4.2.11 R, in accordance with the table below.

    2. Period in which event (in column 4 of the table in FEES 4.2.11 R) occurs

    Proportion of periodic fee payable

    1 April to 30 June inclusive

    100%

    1 July to 30 September inclusive

    75%

    1 October to 31 December inclusive

    50%

    1 January to 31 March inclusive

    25%
  2. (2)

    For recognised bodies, if the recognition order is made during the course of the relevant financial year, the periodic fee required is set out in Column (4) of the table in FEES 4.2.11 R.

FEES 4.2.7 R

A firm (other than andICVC or UCITS qualifier) which becomes authorised, or whose permission isextended, during the course of the financial yearmust pay a fee which is calculated by:

  1. (1)

    identifying each of the tariffs set out in Part 1 of FEES 4 Annex 2R for the relevant financial yearthat apply to the firm only after the permission is received or extended, but ignoring:

    1. (a)

      the A.13 activity group if, before the variation, the A.12 activity group applied to the firm's business; or

    2. (b)

      the A.12 activity group if, before the variation, the A.13 activity group applied to the firm's business;

  2. (2)

    calculating the amount for each of thosetariffs which is the higher of:

    1. (a)

      the minimum fee specified for the tariff; and

    2. (b)

      the result of applying the tariff to the projected valuation, for its first year (as provided to the FSA in the course of the firm's application), of the business to which the tariff relates(or, where relevant, the number of approved persons immediately after the permission is given);

  3. (3)

    adding together the amounts calculated under (2); and10

  4. (4)

    modifying the result as indicated by the table in FEES 4.2.6 R.

FEES 4.2.7A G

1Projected valuations for a firm's first year will be collected for the 12 month period beginning with the date a firm becomes authorised, or the date permission isextended. That information will be used to calculate the periodic fee for the remainder of the financial year in which the firm was authorised or its permission wasextended (adjusted in accordance with FEES 4.2.7 R) and to calculate the periodic fee for the following financial year.

FEES 4.2.8 R RP

In relation to an incoming EEA firm or an incoming Treaty firm the modification provisions of FEES 4.2.7 R apply only in relation to the relevant regulated activities of the firm, which are passported activities or Treaty activities and which are carried on in the United Kingdom.

Fee payers ceasing to hold relevant status or reducing the scope of their permission after start of relevant period

FEES 4.2.9 G RP

The FSA will not refund periodic fees if, after the start of the period to which they relate:

  1. (1)

    a fee payer ceases to have the status set out in column (1) of the table in FEES 4.2.11 R; or

  2. (2)

    a firm reduces its permission so that it then falls out of the fee-block previously applied to it,

(but see FEES 2.3 (Relieving Provisions) and FEES 4.3.13 R (Firms Applying to Cancel or Vary Permission Before Start of Period)).

Extension of Time

FEES 4.2.10 R RP

A person need not pay a periodic fee on the date on which it is due under the relevant provision in FEES 4.2.1 R, if:

  1. (1)

    that date falls during a period during which circumstances of the sort set out in GEN 1.3.2 R (Emergencies) exist, and that person has reasonable grounds to believe that those circumstances impair its ability to pay the fee, in which case he must pay it on or before the fifth business day after the end of that period; or

  2. (2)

    unless FEES 4.3.6R (3) or FEES 4.3.6R (4) (Time and method for payment) applies, that date would otherwise fall on or before the 30th day after the date on which the FSA has sent written notification to that person of the fee payable on that date, in which case he must pay on or before the 30th day after the date on which the FSA sends the notification.

FEES 4.2.11 R RP

Table of periodic fees

1 Fee payer

2 Fee payable

3 Due date

4 Events occurring during the period leading to modified periodic fee

Any firm (except an ICVC or a UCITS qualifier)

As specified in FEES 4.3.1 R

(1) Unless (2) applies, on or before the relevant dates specified in FEES 4.3.6 R

(2) If an event specified in column 4 occurs during the course of a financial year, 30 days after the occurrence of that event, or if later the dates specified in FEES 4.3.6 R.

Firm receives permission; or Firm extends permission

Any firm which reports transactions3 to the FSA using the FSA's Direct Reporting System or FSA's Transaction Reporting System (see SUP 17)

3

FEES 4 Annex 3

(1) For transaction charges, the first working day of each month

(2) For licence fees and enrolment charges, by the date set out on the relevant invoice

Not applicable

Persons who hold a certificate issued by the FSA under article 54 of the Regulated Activities Order (Advice given in newspapers etc.)

£1,000

(1) Unless (2) applies, on or before 30 April

(2) If an event in column 4

occurs

during the course of a financial year, 30 days after the occurrence of that event

Certificate issued to person by FSA under Article 54 RAO

Any manager of an authorised unit trust;

In relation to each unit trust the amount specified in FEES 4 Annex 4

Authorisation order is made in relation to the relevant scheme

Any ACD of an ICVC; and

In relation to each ICVC the amount specified in FEES 4 Annex 4

Persons who, under the constitution or founding arrangements of a recognised scheme, is responsible for the management of the property held for or within the scheme;

In relation to each recognised scheme the amount specified in FEES 4 Annex 4

The relevant scheme becomes a recognised collective investment scheme

Not applicable

UK recognised body

FEES 4 Annex 6 , part 1

(1) Unless (2) applies, by the due dates set out in FEES 4 Annex 6, part 1

(2) If the event in column 4 occurs during the course of a financial year, 30 days after the occurrence of that event

Recognition order is made.Modified periodic fee:

(1) for a UKrecognised investment exchange, 150,000;

(2) for a UKrecognised clearing house, 250,000.

Overseas recognised body

FEES 4 Annex 6 , part 2

(1), unless (2) applies, 1 July.

(2) If the event in column 4 occurs during the course of a financial year , 30 days after the occurrence of that event.

Recognition order is made.Modified periodic fee:

(1) for an overseas investment exchange, 10,000;

(2) for a overseas clearing house, 35,000.

Listed issuers (in LR) of shares, depositary receipts and securitised derivatives (in LR), unless the conditions set out below apply.3

The first condition is that the listedissuer, or a related entity, has already paid a periodic fee in respect of the period concerned. The second condition is that the listedissuer is subject to listing rules as a result of a reverse takeover, or that the listedissuer is a newly formed entity, created as a result of a restructuring.3

FEES 4 Annex 7

Within 30 days of the date of the invoice

Listed issuer 3 (in LR) becomes subject to listing rules

3

Sponsors

10,00010 per year for the period from 1 April to 31 March the following year (see Note)2

Within 30 days of the date of the invoice

Approval of sponsor

All non-listed issuers (in DTR) of shares, depositary receipts and securitised derivatives.

FEES 4 Annex 8

Within 30 days of the date of the invoice

Non-listed issuer (in DTR) becomes subject to disclosure rules and transparency rules

Note: Sponsors on the list of approved sponsors as at 1 April each year will be liable for the full year's annual fee unless FEES 4.3.13 R applies.2

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

FEES 4.3.1 R RP

The periodic fee payable by a firm (except an 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; less

  2. (2)

    any deductions from the periodic fee specified in Part 2 of FEES 4 Annex 2.

FEES 4.3.2 G RP
  1. (1)

    The amount payable by each firm will depend upon the category (or categories) of regulated activities it is engaged in (fee-blocks), and on the amount of business it conducts in each category (tariff base). The fee-blocks and tariffs are identified in in respect of the FCA and in respect of the PRAFEES 4 Annex 1, while FEES 4 Annex 2 sets out the tariff rates for the relevant financial year.

  2. (2)

    Incoming EEA firms, and incoming Treaty firmsreceive a discount to reflect the reduced scope of the FSA's responsibilities in respect of them. The level of the discount varies from fee-block to fee-block, according to the division of responsibilities between the FSA and Home state regulators for firms in each fee-block (see FEES 4.3.11 G and FEES 4.3.12 R).

Calculation of periodic fee

FEES 4.3.3 R RP

The periodic fee referred to in FEES 4.3.1 R is (except in relation to the Society) calculated as follows:

  1. (1)

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

  2. (2)

    for each of thosetariffs, calculate the sum payable in relation to the business of the firm for that period, applying any minimum fee discount as may be applicable (see FEES 4.3.16 R)9;

  3. (3)

    add together the amounts calculated under (2); and9

  4. (4)

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

    1. (a)

      for payment by direct debit, successful collection of the amount due is made at the first attempt by the FSA; or

    2. (b)

      for payment by credit transfer, the amount due is received by the FSA on or before the due date.9

Modification for firms with new or extended permissions

FEES 4.3.4 G RP
  1. (1)

    A firm which becomes authorised during the course of a financial year 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 - see FEES 4.2.5 G and FEES 4.2.6 R.

  2. (2)

    Similarly a firm which extends its permission so 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 - see FEES 4.2.6 R and FEES 4.2.7 R.

  3. (3)

    These provisions apply (with some changes) to incoming EEA firms and incoming Treaty firms.

Amount payable by the Society of Lloyd's

FEES 4.3.5 R RP

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

Time of payment

FEES 4.3.6 R RP
  1. (1)

    If the firm's,periodic fee for the previous financial year was at least £50,000, the firm must pay:

    1. (a)

      an amount equal to 50% of the periodic fee payable for the previous year, by 30 April in the financial yearto which the sum due under FEES 4.2.1 R relates; and

    2. (b)

      the balance of the periodic fee due for the current financial year by 1 September in the financial yearto which that sum relates.

  2. (2)

    If the firm's,periodic fee for the previous financial year was less than £50,000, the firm must pay the periodic fee due in full by 1 August or, if later, within 30 days of the date of the invoice in the financial year to which that sum relates.

  3. (3)

    If a firm has applied to cancel its Part IV permission in the way set out in SUP 6.4.5 D (Cancellation of permission), then (1) and (2) do not apply but it must pay the total amount due when the application is made.

  4. (4)

    If the FSA has exercised its own-initiative powers to cancel a firm'sPart IV permission in the way set out in EG 8 (Variation and cancellation of permission on the FSA's own initiative and intervention against incoming firms)2, then (1) and (2) do not apply but the firm must pay the total amount due immediately before the cancellation becomes effective.

    2

Groups of firms

FEES 4.3.7 R RP

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 FSA in writing of the name of each other firm within the group for which it will pay; and

  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 4.3.8 G RP

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

FEES 4.3.9 G RP

If the payment made does not satisfy in full the periodic fees payable by all of the members of the group notified to the FSA under FEES 4.3.7 R, the FSA 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.

FEES 4.3.10 G RP

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 FSA is informed that the sum being paid is for that firm's periodic fees.

Incoming EEA firms and incoming Treaty firms

FEES 4.3.11 G RP

The FSA recognises that its responsibilities in respect of an incoming EEA firm or of an incoming Treaty firm are reduced compared with a firm which is incorporated in the United Kingdom. Accordingly the periodic fees which would otherwise be applicable to incoming EEA firms and incoming Treaty firms are reduced.

FEES 4.3.12 R RP

For an incoming EEA firm or an incoming Treaty firm, the calculation required by FEES 4.3.3 R is modified as follows:

  1. (1)

    the tariffs set out in Part 1 of FEES 4 Annex 2 are applied only to the regulated activities of the firm which are carried on in the United Kingdom; and

  2. (2)

    those tariffs are modified in accordance with Part 3 of and, if applicable, Part 3 of FEES 4 Annex 2.

Firms Applying to Cancel or Vary Permission Before Start of Period

FEES 4.3.13 R RP
  1. (1)

    If:

    1. (a)

      a firm makes an application to vary its permission (by reducing its scope), or cancel it, in the way set out in SUP 6.3.15 D (3) (Variation of permission) and SUP 6.4.5 D (Cancellation of permission); an issuer makes an application for de-listing; or a sponsor notifies FSA of its intention to be removed from the list of approved sponsors; 1and

    2. (b)

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

    FEES 4.2.1 R applies to the firm as if the relevant variation or cancellation of the firm'spermission, de-listing or removal from the list of approved sponsors,1 took effect immediately before the start of the periodto which the fee relates.

  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 within three months of the start of the period to which the fee relates.

    1
FEES 4.3.14 G RP

Where a firm has applied to cancel its Part IV permission, or the FSA has exercised its own-initiative powers to cancel a firm's Part IV permission, the due dates for payment of periodic fees are modified by FEES 4.3.6R (3) and FEES 4.3.6R (4) respectively.

Firms acquiring businesses from other firms

FEES 4.3.15 R
  1. (1)

    This rule applies if

    a firm (A) acquires all or a part of the business of another firm (B), whether by merger, acquisition of goodwill or otherwise, in relation to which a periodic fee would have been payable by B.

  2. (2)

    If, before the date on which A acquires the business, B had paid any periodic fee payable for the period in which the acquisition occurred, FEES 4.2.6 R to FEES 4.2.7 R do not apply to A in relation to the business acquired from B.

  3. (3)

    If the acquisition occurs after the valuation date applicable to the business (as set out in FEES 4 Annex 1) which A acquired from B, for the period following that in which the acquisition occurred, FEES 4.2.1 R applies to A, in relation to that following period, as if the acquisition had occurred immediately before the relevant valuation date.

Minimum fee discount

FEES 4.3.16 R
  1. (1)

    A firm (other than a firm in (2) or a credit union) in more than one fee block must pay at least 50% of the total minimum fee payable in any fee block in which it is a minimum fee payer.[deleted]9

  2. (2)

    A firm (other than a credit union) liable to pay only minimum fees in each fee block it is in must pay 100% of the highest total minimum fee payable within any one fee block and must pay at least 50% of the total minimum fee payable in any other fee blocks in which it is a minimum fee payer.[deleted]9

  3. (3)

    A credit union in more than one fee block must pay at least 50% of the total minimum fee payable in any fee block, other than fee block A.1, in which they are a minimum fee payer.[deleted]9

FEES 4.4 Information on which Fees are calculated

FEES 4.4.1 R RP

A firm (other than the Society ) must notify to the FSA the value (as at the valuation date specified in Part 3 of FEES 4 Annex 1) of each element of business on which the periodic fee payable by the firm is to be calculated.

FEES 4.4.2 R RP

A firm (other than the Society) must send to the FSA in writing the information required under FEES 4.4.1 R as soon as reasonably practicable, and in any event within two months, after the date specified as the valuation date in Part 3 of FEES 4 Annex 1.

FEES 4.4.3 R RP

To the extent that a firm has provided the information required by this section to the FSA as part of its compliance with another provision of the Handbook, it is deemed to have complied with the provisions of this section.

FEES 4.4.4 G RP

In most cases a firm will provide the information required by this section as part of its compliance with the provisions of SUP. To the extent that the FSA does not obtain sufficient, or sufficiently detailed, information it may seek this by using its general information gathering powers (see SUP 2 (Information gathering by the FSA on its own initiative)).

FEES 4.4.5 R RP

For an incoming EEA firm or an incoming Treaty firm, the information required under FEES 4.4 is limited to the regulated activities of the firm which are carried on in the United Kingdom.

FEES 4 Annex 1 Activity groups, tariff bases and valuation dates applicable

R

Part 1

This table shows how the regulated activities for which a firm has permission are linked to activity groups (fee-blocks). A firm can use the table to identify which fee-blocks it falls into based on its permission.

Activity group

Fee payer falls in the activity group if

A.1 Deposit acceptors

its permission includes accepting deposits or issuing e-money; BUT DOES NOT include either of the following:

effecting contracts of insurance;

carrying out contracts of insurance.

A.2 Home finance providers 3 and administrators

3

its permission includes a regulated activity within3 one or more of the following:

entering into a home finance transaction 3; or

administering a home finance transaction 3; or

agreeing to carry on a regulated activity which is within either of the above.

3 3

A.3 Insurers - general

its permission includes one or more of the following:

effecting contracts of insurance;

carrying out contracts of insurance;

in respect of specified investments that are:

- general insurance contracts; or

- long-term insurance contracts other than life policies.

A.4 Insurers - life

its permission includes one or more of the following:

effecting contracts of insurance;

carrying out contracts of insurance;

in respect of specified investments including life policies;

entering as provider into a funeral plan contract.

A.5 Managing agents at Lloyd's

its permission includes managing the underwriting capacity of a Lloyd's syndicate as a managing agent at Lloyd's.

A.6 The Society of Lloyd's

it is the Society of Lloyd's.

Note for authorised professional firms:

Generally, for fee-blocks A.7 to A.19 below, only those regulated activities that are not limited to non-mainstream regulated activities should be taken into account in determining which fee-block(s) fee-payers belong to for the purpose of charging periodic fees.

However, in the case that all the regulated activity within a firmpermission are limited to non-mainstream regulated activities, then that firm's will be allocated to fee-block A.13 alone.

This does not prevent a fee being payable by an authorised professional firm under FEES 3.2.7 R (p) where it applies to vary its Part IV permission such that it would normally be allocated to fee-block(s) other than A.13 if the variation was granted.

A.7 Fund managers

(1) its permission includes managing investments;

OR

(2) its permission includes

ONLY either one or both of:

safeguarding and administering of investments (without arranging); and

arranging safeguarding and administration of assets;

OR

(3) the firm is a venture capital firm.

Class (1) firms are subdivided into three classes:

- class (1)A, where the funds managed by the firm belong to one or more occupational pension schemes;

- class (1)B, where:

(a) the firm is not a class (1)A firm; and

(b) the firm's permission includes NEITHER of the following:

safeguarding and administering investments (without arranging);

arranging safeguarding and administration of assets; and

(c) the firm EITHER:

has a requirement that prohibits the firm from holding or controlling client money, or both; OR

if it does not have such a requirement, only holds or controls client money (or both), arising from an agreement under which commission is rebated to a client; and

- class (1)C, where the firm is not within class (1)A or class (1)B.

A.8

Not applicable.

A.9 Operators, Trustees and Depositaries of collective investment schemes and Operators of personal pension schemes or stakeholder pension schemes 2

(1) its permission:

(a) includes one or more of the following:

establishing, operating or winding up a regulated collective investment scheme;

establishing, operating or winding up an unregulated collective investment scheme;

acting as trustee of an authorised unit trust scheme;

acting as the depositary or sole director of an open-ended investment company;

establishing, operating or winding up a personal pension scheme or a stakeholder pension scheme (but only if the firm does not fall within activity group A1 or A4);2

AND

(b) PROVIDED the firm is NOT one of the following:

a corporate finance advisory firm;

a firm in which the above activities are limited to carrying out corporate finance business;

a venture capital firm;

OR

(2) if the fee-payer has none of the regulated activities above within its permission, but ALL the remaining regulated activities in its permission are limited to carrying out trustee activities.

A.10 Firms dealing as principal

its permission includes dealing in investments as principal ;

BUT NOT if one or more of the following apply:

the firm is acting exclusively as a matched principal broker;

the above activity is limited either to acting as an operator of a collective investment scheme, establishing, operating or winding up a personal pension scheme or a stakeholder pension scheme,2 or to carrying out trustee activities;

the firm is a corporate finance advisory firm;

the above activity is otherwise limited to carrying out corporate finance business;

the firm is subject to a limitation to the effect that the firm, in carrying on this regulated activity, is limited to entering into transactions in a manner which, if the firm was an unauthorised person , would come within article 16 of the Regulated Activities Order (Dealing in contractually based investments);

the above activity is limited to not acting as a market maker;

the firm is an oil market participant, energy market participant or a local;

its permission includes either:

- effectingcontracts of insurance; or

- carrying out contracts of insurance.

A.11

Not applicable.

A.12 Advisory arrangers, dealers or brokers (holding or controlling client money or assets, or both)

its permission:

(a) includes one or more of the following, in relation to one or more designated investments :

dealing in investments as agent;

arranging (bringing about) deals in investments;

making arrangements with a view to transactions in investments;

dealing as principal in investments where the activity is carried on as a matched principal broker, oil market participant, energy market participant or local;

advising on investments (except pension transfers and pension opt-outs);providing basic advice on a stakeholder productgiving basic advice on a stakeholder product;

advising on pension transfers and pension opt-outs;

advising on syndicate participation at Lloyd's;

(b) BUT NONE of the following:

effecting contracts of insurance; or

carrying out contracts of insurance;

AND

(c) CAN HAVE one or more of the following:

safeguarding and administering of assets;

arranging safeguarding and administration of assets;

the ability to hold or control client money, or both:

- that is, there is no requirement which prohibits the firm from doing this; and

- provided that the client money in question does not only arise from an agreement under which commission is rebated to a client;

AND

(d) PROVIDED the fee-payer is NOT any of the following:

a corporate finance advisory firm;

a firm for whom all of the applicable activities above are otherwise limited to carrying out corporate finance business;

a firm whose activities are limited to carrying out venture capital business;

a firm whose activities are limited to acting as an operator of a regulated collective investment scheme;

a firm whose activities are limited to carrying out trustee activities;

a service company.

1

A.13 Advisory arrangers, dealers or brokers (not holding or controlling client money or assets, or both)

(1) it is an authorised professional firm and ALL the regulated activities in its permission are limited to non-mainstream regulated activities;

OR

(2) its permission:

(a) includes one or more of the following, in relation to one or more designated investments:

dealing in investments as agent;

arranging (bringing about) deals in investments;

making arrangements with a view to transactions in investments;

dealing as principal in investments where the activity is carried on as a matched principal broker, oil market participant, energy market participant or local;

advising on investments (except pension transfers and pension opt-outs);

providing basic advice on a stakeholder product;

advising on pension transfers and pension opt-outs;

advising on syndicate participation at Lloyd's;

(b) BUT NONE of the following:

effecting contracts of insurance;

carrying out contracts of insurance;

safeguarding and administration of assets;

arranging safeguarding and administration of assets;

AND

(c) MUST EITHER, in connection with its designated investment business:

have a requirement that prohibits the firm from holding or controlling client money, or both;

OR

if it does not have such a requirement , only holds or controls client money (or both), arising from an agreement under which commission is rebated to a client;

AND

(d) PROVIDED the fee-payer is NOT any of the following:

a corporate finance advisory firm;

a firm for whom all of the applicable activities above are otherwise limited to carrying out corporate finance business;

a firm whose activities are limited to carrying out venture capital business;

a firm whose activities are limited to acting as an operator of a regulated collective investment scheme;

a firm whose activities are limited to carrying out trustee activities;

a service company.

18

A.14 Corporate finance advisers

the firm is carrying on corporate finance business PROVIDED the fee-payer is NOT a venture capital firm.

A.15

Not applicable.

A.16 Pensions review levy firms

it was liable to pay the Pensions Levy to PIA in 2001/2002.

A.17

Not applicable.

A.18 Home finance providers 3 , advisers and arrangers

3

its permission includes a regulated activity within 3one or more of the following:

entering into a home finance transaction 3; or

arranging (bringing about) a home finance transaction 3; or

making arrangements with a view to a home finance transaction 3; or

advising on a home finance transaction 3; or

agreeing to carry on a regulated activity which is within any of the above.

3 3 3 3

A.19 General insurance mediation

its permission includes one or more of the following in relation to a non-investment insurance contract:

dealing in investments as agent; or

arranging (bringing about) deals in investments; or

making arrangements with a view to transactions in investments; or

assisting in the administration and performance of a contract of insurance; or

advising on investments; or

agreeing to carry on a regulated activity which is within any of the above.

B. Market operators

Firms that have been prescribed as an operator of a prescribed market under the Financial Services and Markets Act 2000 (Prescribed Markets and Qualifying Investments) Order 2001 (SI 2001/996).

B. Service companies

it is a service company.

Part 2

This table indicates the tariff base for each fee-block. The tariff base is the means by which we measure the 'amount of business' conducted by a firm. Note that where the tariff base is the number of approved persons it may be that a particular firm has permission for relevant activities as described in Part 1 but the type of activity that the firm undertakes is not one requiring a person to be approved to undertake a relevant customer function (for example firms only giving basic advice on stakeholder products). In these circumstances, the firm will be required to pay a minimum fee only (see FEES 4 Annex 2 Part 1).

Activity group

Tariff-base

A.1

MODIFIED ELIGIBLE LIABILITIES

For banks:

Part 1:

Liabilities

In sterling:

2 + 3 + 4 + 5A + 5B + 6B + 6C + 6D + 6E + 6F + 6G + 6H + 6J + 7B + 7C + 7D + 7E + 7F + 7G + 7H + 7J + 8 + 10 + 60% of 11A + 44

plus

In foreign currency, one-third of:

E2 + E3 + E4 + E5A + E5B + E6B + E6C + E6D + E6E + E6F + E6G + E6H + E6J + E7B + E7C + E7D + E7E + E7F + E7G + E7H + E7J + E8 + E10 + 60% of E11A + E44 + C2 + C3 + C4 + C5A + C5B + C6B + C6C + C6D + C6E + C6F + C6G + C6H + C6J + C7B + C7C + C7D + C7E + C7F + C7G + C7H + C7J + C8 + C10 + 60% of C11A: less

Assets

In sterling:

21B + 60% of 22A + 23D + 23E + 23F + 30A + 30B + 31A + 31B + 32AA

plus

In foreign currency, one-third of:

E21B + 60% of E22A + E23D + E23E + E23F + E30A + E30B + E31A + E31B + E32AA + C21B + 60% of C22A + C23D + C23E + C23F + C30A + C30B + C31A + C31B + C32AA

Part 2: Non-resident office offset

The fee base is adjusted by deducting from the amount calculated in accordance with part 1 above, the Non-Resident Office Offset amount obtained by subtracting item 45Dfrom item 45BAin the Form BT. The Non-Resident Office Offset amount, if it would otherwise have been a negative number, is zero.

Notes:

(1) All references in the above formula are to entries on Form BT(that is, the Balance Sheet Form completed to provide information required following the Banking Statistics Review 1997 and returned by banks to the Bank of England as required by the Bank of England Act 1998).

(2) E refers to assets and liabilities denominated in euro (as referred to in column 2 of Form BT) and C refers to assets and liabilities denominated in currencies other than sterling and euro (as referred to in column 3 of Form BT). In accordance with Form BT, assets and liabilities in currencies other than sterling are to be recorded in sterling.

(3) The figures reported on the Form BT relate to business conducted out of offices in the United Kingdom.

For e-money issuers:

Outstanding balance of e-money liabilities

For credit unions:

Deposits with the credit union (share capital)

LESS

the credit union's bank deposits (investments + cash at bank)

Note:

Only United Kingdom business is relevant for calculating credit unions' MELs.

For building societies:

deposit liabilities (including debt securities up to five years original maturity)

(that is, the amounts in sterling (in column 1) and one-third of foreign currency referenced amounts (in columns 2 and 3) for items B1.1+B1.2+B2.0a+B2.0b+B2.10+B2.13+B2.14+B2.15+B2.16)

LESS amounts in respect of:

sterling repo liabilities with the Bank of England

(that is, ONLY the amounts in sterling (in column 5) for item B2.5a)

balances held with the Bank of England (excluding cash ratio deposits)

(that is, the amounts in sterling (in column 1) and one-third of foreign currency referenced amounts (in columns 2 and 3) for item B6.2a, less the amounts in sterling (in column 1) and one-third of foreign currency referenced amounts (in columns 2 and 3) for item OW1.1)

market loans to banks, building societies (balances with and loans to, plus CDs, Commercial paper)

(that is, the amounts in sterling (in column 1) and one-third of foreign currency referenced amounts (in columns 2 and 3) for items B6.3.a+B6.4.a+B6.4b+B6.5a+B6.5b+B6.12a)

investments with banks and building societies (bonds, notes and other debt instruments up to five years original maturity) (that is, the amounts in sterling (in column 1) and one-third of foreign currency referenced amounts (in columns 2 and 3) for items B6.6a1+B6.6a2+B6.10a1+B6.10a2)

Note :

All references in the definition for building society MELs are to entries in the MFS1 which is submitted monthly by all building societies to the FSA.

A.2

NUMBER OF MORTGAGES OR OTHER HOME FINANCE TRANSACTIONS 3 ENTERED INTO AND ADMINISTERED

The number of new mortgage contracts, home purchase plans or home reversion plans3 entered into;

AND

The number of mortgage contracts, home purchase plans or home reversion plans3 being administered, multiplied by 0.05 for mortgage outsourcing firms or other home finance outsourcing firms3and by 0.5 for all other firms.1

Notes:

(1) Mortgage outsourcing firms are firms with permission for administering regulated mortgage contracts, but not to enter the contract as lender.1

Home finance outsourcing firms are firms with permission for administering a home finance transaction, but not entering into a home finance transaction.3

(2) In this context a 'mortgage' means a loan secured by a first charge over residential property in the United Kingdom. For the measure of the number of contracts being administered, each first charge counts as one contract, irrespective of the number of loans involved.

(3) Mortgages, home purchase plans or home reversion plans3 administered include those that the firm administers on behalf of other firms.

1 1

A.3

GROSS PREMIUM INCOME AND GROSS TECHNICAL LIABILITIES

For insurers:

The amount of premium receivable which must be included in the documents required to be deposited under IPRU(INS) 9.6 in relation to the financial year to which the documents relate but disregarding for this purpose such amounts as are not included in the document by reason of a waiver or an order under section 68 of the Insurance Companies Act 1982 carried forward as an amendment to IPRU(INS) under transitional provisions relating to written concessions in SUP;

less,premiums relating to pension fund management 6business where the firm owns the investments and there is no transfer of risk;

6

AND the amount of gross technical liabilities (IPRU(INS) Appendix 9.1 - Form 15, line 19) which must be included in the documents required to be deposited under IPRU(INS) 9.6R in relation to the financial year to which the documents relate but disregarding for this purpose such amounts as are not included in the document by reason of a waiver or an order under section 68 of the Insurance Companies Act 1982 carried forward as an amendment to IPRU(INS) under transitional provisions relating to written concessions in SUP;

less,

the amount of gross technical liabilities relating to pension fund management 6business where the firm owns the investments and there is no transfer of risk.

6

Notes :

(1) in the case of either:

(a) a pure reinsurer carrying on general insurance business through a branch in the United Kingdom; or

(b) an insurer whose head office is not in an EEA State carrying on general insurance business through a branch in the United Kingdom; or

(c) a non-EEA insurer other than a Swiss general insurer which has permission to carry on direct insurance business and which has made a deposit in an EEA state other than the United Kingdom in accordance with IPRU(INS) 8.1(2),

the amount only includes premiums received and gross technical liabilities held in respect of its United Kingdom business;

(2) for a Swiss general insurance company, premiums and gross technical liabilities include those relevant to the operations of the company's United Kingdombranch; and

(3) a firm need not include premiums and gross technical liabilities relating to pure protection contracts which it reports, and pays a fee on, in the A.4 activity group.

For friendly societies:

Either:

(a) the value of contributions as income under Schedule 7: Part I item 1(a) to the Friendly Societies (Accounts and Related Provisions) Regulations 1994 (SI 1994/1983) (the regulations) for a non-directive friendly society, included within the income and expenditure account; or

(b) the value of gross premiums written under Schedule 1: Part I items I.1(a) and II.1.(a) of the regulations for a directive friendly society included within the income and expenditure account.

Notes :

(1) In both (a) and (b) above only premium receivable in respect of United Kingdom business are relevant.4

(2) For UK ISPVs the tariff base is not relevant and a flat fee set out in FEES 4 Annex 2R is payable.4

4

A.4

ADJUSTED GROSS PREMIUM INCOME AND MATHEMATICAL RESERVES

Except for UK ISPVs:4

Amount of new regular premium business (yearly premiums including reassurances ceded but excluding cancellations and reassurances accepted), times ten;

Plus

amounts of new single premium business (total including reassurances ceded but excluding cancellations and reassurances accepted). Group protection business (life and private health insurance) must be included;

Less

premiums relating to pension fund management business where the firm owns the investments and there is no transfer of risk.

For each of the above, business transacted through independent practitioners or tied agents (either single or multi-tie)1 will be divided by two in calculating the adjusted gross premium income;

AND

the amount of mathematical reserves (IPRU(INS) Appendix 9.1R - Form 146, Line 116) which must be included in the documents required to be deposited under IPRU(INS) 9.6R in relation to the financial year to which the documents relate but disregarding for this purpose such amounts as are not included in the document by reason of a waiver or an order under section 68 of the Insurance Companies Act 1982 carried forward as an amendment to IPRU(INS) under transitional provisions relating to written concessions in SUP;

Less

mathematical reserves relating to pension fund management6 business where the firm owns the investment and there is no transfer of risk.

Notes:

(1) [deleted]

(2) Only premiums receivable and mathematical reserves held in respect of United Kingdom business are relevant.

(3) For UK ISPVs the tariff base is not relevant and a flat fee set out in FEES 4 Annex 2 is payable.4

6 6 6

A.5

ACTIVE CAPACITY

The capacity of the syndicate(s) under management in the year in question. This includes the capacity for syndicate(s) that are not writing new business, but have not been closed off in the year in question.

A.6

Not applicable.

A.7

FUNDS UNDER MANAGEMENT (FuM)

The total value, in pounds sterling, of all assets (see note (a) below) in portfolios which the firm manages, on a discretionary basis (see note (b) below), in accordance with its terms of business, less:

(a) funds covered by the exclusion contained in article 38 (Attorneys) of the Regulated Activities Order;

(b) funds covered by the exclusion contained in article 66(3) (Trustees, nominees and personal representatives) of the Regulated Activities Order;

(c) funds covered by the exclusion contained in article 68(6) (Sale of goods or supply of services) of the Regulated Activities Order;

(d) funds covered by the exclusion contained in article 69(5) (Groups and joint enterprises) of the Regulated Activities Order; and

(e) the value of those parts of the managed portfolios in respect of which the responsibility for the discretionary management has been formally delegated to another firm (and which firm will include the value of the assets in question in its own FuM total); any such deduction should identify the firm to which management responsibility has been delegated.

Notes on FuM

(a) For the purposes of calculating the value of funds under management, assets means all assets that consist of or include any investment which is a designated investment or those assets in respect of which the arrangements for their management are such that the assets may consist of or include such investments, and either the assets have at any time since 29 April 1988 done so or the arrangements have at any time (whether before or after that date) been held out as arrangements under which the assets would do so.

(b) Assets managed on a non-discretionary basis, being assets that the firm has a contractual duty to keep under continuous review but in respect of which prior specific consent of the client must be obtained for proposed transactions, are NOT included as this activity is covered in those charged to fees in activity groups A.12 and A.13.

(c) In respect of collective investment schemes, assets means the total value of the assets of the scheme.

(d) For an OPS firm, the FuM should also be reduced by the value of the assets held as a result of a decision taken in accordance with article 4(6) of The Financial Services and Markets Act 2000 (Carrying on Regulated Activities by Way of Business) Order 2001 (investments in collective investment scheme or bodies corporate which have as their primary purpose the acquisition, directly, or indirectly, of relevant investments, as defined in that article).

(e) Only assets that are managed from an establishment maintained by the firm in the United Kingdom are relevant.

A.8

Not applicable.

A.9

GROSS INCOME

For operators (including ACDs and managers of unit trusts but excluding operators of a personal pension scheme or a stakeholder pension scheme2):

gross income from the activity relating to fee-block A.9 is defined as:

the amount of the annual charge on funds invested in regulated or unregulated collective investment scheme received or receivable in the latest accounting period (this is calculated as a % of funds invested, typically 1% p.a.);

PLUS

the front-end or exit charge levied on sales or redemptions of collective investment schemes (typically 4-5% of sales/redemptions) in that same accounting period;

PLUS

any additional initial or management charges levied through a product wrapper such asa PEP or an ISA;

BUT EXCLUDING box management profits.

For depositaries (including trustees of collective investment schemes and ICVC depositaries):

The amount of the annual charge levied on funds in regulated collective investment schemes for which they act as depositary (typically a % of the total funds for which they act as depositary).

2For operators of a personal pension scheme or a stakeholder pension scheme:

2The amount of the charges levied on the personal pension scheme or stakeholder pension scheme for which they act as operator:

including up-front charges, fund related charges, transaction related charges and periodic charges; but

excluding charges made to an investor in respect of third party suppliers; for example, charges for stock broking, borrowing, banking services and charges for arranging third party legal services, surveys or environmental screening in connection with property.

Note:

Only the gross income corresponding to United Kingdom business is relevant.

A.10

NUMBER OF TRADERS

Any employee or agent, who:

ordinarily acts within the United Kingdom on behalf of an authorised person liable to pay fees to the FSA in its fee-block A.10 (firms dealing as principal); and who,

as part of their duties in relation to those activities of the authorised person , commits the firm in market dealings or in transactions in securities or in other specified investments in the course of regulated activities.

A.11

Not applicable.

A.12

APPROVED PERSONS

The number of persons approved to undertake one, or more, of the following customer function:

CF21 Investment adviser function;

CF22 Investment adviser (trainee) function;

CF24 Pension transfer specialist function;

CF25 Adviser on syndicate participation at Lloyd's function; or

CF26 Customer trading function.

A.13

APPROVED PERSONS

The number of persons approved to undertake one, or more, of the following customer function:

CF21 Investment adviser function;

CF22 Investment adviser (trainee) function;

CF24 Pension transfer specialist function;

CF25 Adviser on syndicate participation at Lloyd's function; or

CF26 Customer trading function.

A.14

APPROVED PERSONS

The number of persons approved to undertake the following controlled function:

CF23 Corporate finance adviser function.

A.15

Not applicable.

A.16

Percentage share of the amount paid towards PIA's 2001/2002 pensions review levy by fee-payers in fee-block A.16.

A.17

Not applicable.

A.18

ANNUAL INCOME

(a) the net amount retained by the firm of all brokerages, fees, commissions and other related income (eg administration charges, overriders, profit shares) due to the firm in respect of or in relation to home finance mediation activity3 (or activities which would have been mortgage mediation activity if they had been carried out after 30 October 2004 or home purchase mediation activity or home reversion mediation activity if they had been carried out on or after 6 April 20073);

Plus

(b) for any home finance mediation activity3 carried out by the firm for which it receives payment from the lender or provider 3on a basis other than that in (a), the value of all new mortgage advances and amounts provided under other home finance transactions3resulting from that activity multiplied by 0.004;

Plus

(c) if the firm is a home finance provider3, the value of all new mortgage advances and amounts provided under other home finance transactions3which are or would be regulated mortgage contracts if they had been made after 30 October 2004 or home purchase plans or home reversion plans if they had been made on or after 6 April 2007 3(other than those made as a result of home finance mediation activity3by another firm), multiplied by 0.004.

For mortgage outsourcing firms or home finance outsourcing firms3 whose permission does not include advising on a home finance transaction3the relevant amounts are multiplied by 0.15.1

Notes on annual income:

(1) For 2004/05 and 2005/06 firms have supplied this data on their 'HSF1' or 'variation of permission' application form.

(2) For the purposes of calculating annual income, "net amount retained" means all the commission, fees, etc. in respect of home finance mediation activity3that the firm has not rebated to customers or passed on to other firms (for example, where there is a commission chain). Items such as general business expenses (eg employees' salaries, overheads) should not be deducted.

(3) The firm must include in its income calculation, on the same basis as above, earnings from those who will become its appointed representatives immediately after authorisation.

(4) Reference to a "firm" above also includes reference to any person who carried out activities which would be mortgage mediation activity if they had been carried out after 30 October 2004 or home purchase mediation activity or reversion mediation activity if they had been carried out on or after 6 April 20073.

(5) Mortgage outsourcing firms are firms whose permission includes administering regulated mortgage contracts, but not entering into a regulated mortgage contract.1Home finance outsourcing firms are firms whose permission includes administering a home finance transaction, but not entering into a home finance transaction.3

3 3 3 3 3 3

A.19

ANNUAL INCOME(a) the net amount retained by the firm of all brokerages, fees, commissions and other related income (eg administration charges, overriders, profit shares) due to the firm in respect of or in relation to insurance mediation activity (or activities which would have been insurance mediation activity if they had been carried out after 13 January 2005) in relation to general insurance contracts or pure protection contracts;

Plus(b) in relation to the activities set out in (a), for any insurance mediation activity carried out by the firm for which it receives payment from the insurer on a basis other than that in (a), the amount of premiums receivable on the contracts of insurance resulting from that activity multiplied by 0.07;

Plus(c) if the firm is an insurer, in relation to the activities set out in (a), the amount of premiums receivable on its contracts of insurance multiplied by 0.07, excluding those contracts of insurance which:

(i) result from insurance mediation activity by another firm, where a payment has been made by the insurer to the firm under (a); or

(ii) the insurer reports in, and pays a fee under, the A.4 activity group; or

(iii) are not general insurance contracts or pure protection contracts.

Notes on annual income:

(1) For 2004/05 and 2005/06 firms have supplied this data on their 'HSF1' or 'variation of permission' application form.

(2) For the purposes of calculating annual income, "net amount retained" means all the commission, fees, etc. in respect of insurance mediation activity that the firm has not rebated to customers or passed on to other firms (for example, where there is a commission chain). Items such as general business expenses (eg employees' salaries, overheads) should not be deducted.

(3) The firm must include in its income calculation, on the same basis as above, earnings from those who will become its appointed representatives immediately after authorisation.

(4) Reference to a "firm " above also includes reference to any person who carried out activities which would be insurance mediation activity (in respect of general insurance contracts or pure protection contracts) if they had been carried out after 13 January 2005.

B. Market operators

Not applicable.

B. Service companies

Not applicable.

Part 3

This table indicates the valuation date for each fee-block. A firm can calculate its tariff data by applying the tariff bases set out in Part 2 with reference to the valuation dates shown in this table.

Activity group

Valuation date

IN THIS TABLE, REFERENCES TO SPECIFIC DATES OR MONTHS ARE REFERENCES TO THE LATEST ONE OCCURRING BEFORE THE START OF THE PERIOD TO WHICH THE FEE APPLIES, UNLESS OTHERWISE SPECIFIED - E.G. FOR 2004/05 FEES (1 APRIL 2004 TO 31 MARCH 2005), A REFERENCE TO DECEMBER MEANS DECEMBER 2003.

Where a firm's tariff data is in a currency other than sterling, it should be converted into sterling at the exchange rate prevailing on the relevant valuation date.

A.1

For banks:

Modified eligible liabilities (MELs), valued at:

for a firm which reports monthly, the average of the MELs for October, November and December;

for a firm which reports quarterly, the MELs for December.

For e-money issuer:

MELs, valued at the end of the financial year ended in the calendar year ending 31 December.

For credit unions:

MELs, valued at December or as disclosed by the most recent annual return made prior to that date.

For building societies:

MELs, valued at the average of the MELs for October, November and December.

A.2

Number of mortgages, home purchase plans or home reversion plans3 entered into in the twelve months ending 31 December.

AND

Number of mortgages, home purchase plans or home reversion plans3 being administered on 31 December.

A.3

Annual gross premium income (GPI), for the financial year ended in the calendar year ending 31 December.

AND

Gross technical liabilities (GTL) valued at the end of the financial year ended in the calendar year ending 31 December.

A.4

Adjusted annual gross premium income (AGPI) for the financial year ended in the calendar year ending 31 December.

AND

Mathematical reserves (MR) valued at the end of the financial year ended in the calendar year ending 31 December.

A.5

Active capacity (AC), in respect of the Underwriting Year (as reported to the Society of Lloyd's) which is current at the beginning of the period to which the fee relates.

[Note: this is the Underwriting Year which is already in progress at the start of the fee period - e.g. for 2004/05 fees, the fee period will begin on 1 April 2004, which is in the 2004 Underwriting Year, so the AC for that Underwriting Year is the relevant measure.]

A.6

Not applicable.

A.7

Funds under management (FuM), valued at 31 December.

A.8

Not applicable.

A.9

Annual gross income (GI), valued at the most recent financial year ended before 31 December.

A.10

Number of traders as at 31 December.

A.11

Not applicable.

A.12

Relevant approved persons as at 31 December.

A.13

Relevant approved persons as at 31 December.

A.14

Relevant approved persons as at 31 December.

A.15

Not applicable.

A.16

Not applicable.

A.17

Not applicable.

A.18

Annual income (AI) for the financial year ended in the calendar year ending 31 December.

A.19

Annual income (AI) for the financial year ended in the calendar year ending 31 December.

B. Market operators

Not applicable.

B. Service companies

Not applicable.

FEES 4 Annex 2 1 3Fee tariff rates, permitted deductions and EEA/Treaty firm modifications for the period from 1 April 2007 to 31 March 20083

Part 1

This table shows the tariff rates applicable to each fee block

4(1)

For each activity group specified in the table below, the fee is the total of the sums payable for each of the tariff bands applicable to the firm's business, calculated as follows:

(a)

the relevant minimum fee; plus

(b)

an additional fee calculated by multiplying the firm's tariff base by the appropriate rates applying to each tranche of the tariff base, as indicated.

(2)

A firm may apply the relevant tariff bases and rates to non-UK business, as well as to its UK business, if:

(a)

it has reasonable grounds for believing that the costs of identifying the firm'sUK business separately from its non-UK business in the way described in Part 2 of FEES 4 Annex 1 are disproportionate to the difference in fees payable; and

(b)

it notifies the FSA in writing at the same time as it provides the information concerned under FEES 4.4 (Information on which fees are calculated), or, if earlier, at the time it pays the fees concerned.

(3)

For a firm which has not complied with FEES 4.4.2 R (Information on which fees are calculated) for this period:

(a)

the fee is calculated using (where relevant) the valuation or valuations of business applicable to the previous period, multiplied by the factor of 1.10;

(b)

an additional administrative fee of £250 is payable; and

(c)

the minimum total fee (including the administrative fee in (b)) is £400.

Activity group

Fee payable

A.1

Minimum fee (£)

£155

million of Modified Eligible Liabilities (MELs)

Fee (/m or part m of MELS)

0 - 0.5

0

>0.5 - 2

additional flat fee of 370

>2 -10

additional flat fee of 520

>10 - 200

26.78

>200 - 2,000

26.75

>2,000 - 10,000

26.67

>10,000 - 20,000

26.48

>20,000

26.29

For a firm in A.1 which has a limitation on its permission to the effect that it may accept deposits from wholesale depositors only, the fee is calculated as above less 30%.

A.2

Minimum fee ()

460

No. of mortgages

Fee (/mortgage)

0 - 50

0

51 - 500

4.41

501 - 1,000

1.77

1,001 - 50,000

1.33

50,001 - 500,000

0.46

>500,000

0.10

A.3

Gross premium income (GPI)

Minimum fee ()

420

million of GPI

Fee (/m or part m of GPI)

0 - 0.5

0

>0.5 - 2

1,954.24

>2 - 5

1,815.84

>5 - 20

1,703.33

>20 - 75

542.24

>75 - 150

475.35

>150

67.00

PLUS

Gross technical liabilities (GTL)

Minimum fee ()

0

million of GTL

Fee (/m or part m of GTL)

0 - 1

0

>1 - 5

48.17

>5 - 50

44.64

>50 - 100

41.43

>100 - 1,000

13.05

>1,000

5.23

For UK ISPV's the tariff rates are not relevant and a flat fee of 420is payable in respect of the period 1 April 2007 to 31 March 2008.

A.4

Adjusted annual gross premium income (AGPI)

Minimum fee ()

210

million of AGPI

Fee (/m or part m of AGPI)

0 - 1

0

>1 - 50

655.12

>50 - 1,000

610.75

>1,000 - 2,000

419.24

>2,000

287.84

PLUS

Mathematical reserves (MR)

Minimum fee ()

210

million of MR

Fee (/m or part m of MR)

0 - 1

0

>1 - 10

38.13

>10 - 100

34.90

>100 - 1,000

23.63

>1,000 - 5,000

16.62

>5,000 - 15,000

12.92

>15,000

10.04

For UK ISPV's the tariff rates are not relevant and a flat fee of 420is payable in respect of the period 1 January 2007to 31 March 2007 to be invoiced with the fee for the financial period 2007/8.

A.5

Minimum fee ()

565

million of Active Capacity (AC)

Fee (/m or part m of AC)

0 - 50

0

>50 - 150

105.16

>150 - 250

88.50

>250

25.96

A.6

1,183,123

A.7

For class 1(C), (2) and (3) firms:

Minimum fee ()

1,180

million of Funds under Management (FuM)

Fee (/m or part m of FuM)

0 - 10

0

>10 - 100

51.44

>100 - 2,500

16.54

>2,500 - 10,000

9.21

>10,000

1.04

For class 1(B) firms: the fee calculated as for class 1(C) firms above, less 15%.

For class 1(A) firms: the fee calculated as for class 1(C) firms above, less 50%.

A.8

This activity group does not apply for this period.

A.9

Minimum fee ()

1,845

million of Gross Income (GI)

Fee (/m or part m of GI)

0 - 1

0

>1 - 5

977.18

>5 - 15

960.65

>15 - 40

951.13

>40

938.17

A.10

Minimum fee ()

2,255

No. of traders

Fee (/trader)

0 - 2

0

3 - 5

2,520.00

6 - 10

1,821.00

11 - 50

1,683.00

51 - 200

1,457.00

>200

1,176.00

A.11

This activity group does not apply for this period.

A.12

Minimum fee ()

1,760

No. of persons

Fee (/person)

0 - 1

0

2 - 4

1,092.00

5 - 10

553.00

11 - 25

406.00

26 - 150

221.00

151 - 1,500

167.00

>1,500

112.00

For a professional firm in A.12 the fee is calculated as above less 10%.

A.13

For class (2) firms:

Minimum fee ()

1,650

No. of persons

Fee (/person)

0 - 1

0

2 - 4

967.00

5 - 10

944.00

11 - 25

906.00

26 - 500

835.00

501 - 4,000

767.00

>4000

724.00

For class (1) firms: 1650

For a professional firm in A.13 the fee is calculated as above less 10%.

A.14

Minimum fee ()

1,300.00

No. of persons

Fee (/person)

0 - 1

0

2

1,280.00

3 - 4

1,215.00

5 - 10

1,117.00

11 - 100

1,060.00

101 - 200

742.00

>200

446.00

A.15

This activity group does not apply for this period.

A.16

0

A.17

This activity group does not apply for this period.

A.18

Minimum fee ()

650

thousands of Annual Income (AI)

Fee (/ thousand or part thousand of AI)

0 - 100

0

>100 - 1,000

4.58

>1,000 - 5,000

3.83

>5,000 - 10,000

3.06

>10,000 - 20,000

2.30

>20,000

1.93

A.19

Minimum fee ()

410

thousands of Annual Income (AI)

Fee (/ thousand or part thousand of AI)

0 - 100

0

>100 - 1,000

3.88

>1,000 - 5,000

3.39

>5,000 - 15,000

2.45

>15,000 - 100,000

0.98

>100,000

0.40

B. Market operators

20,000

B. Service companies

Bloomberg LP

35,000

EMX Co Ltd

25,000

LIFFE Services Ltd

25,000

Plus Markets plc

90,000

OMGEO Ltd

25,000

Reuters Ltd

35,000

Swapswire Ltd

25,000

Thomson Financial Ltd

25,000

Part 2

This table shows the permitted deductions that apply

4Activity group

Nature of deduction

Amount of deduction

A.1

Financial penalties received

4.9% of the fee payable by the firm for the activity group (see Part 1)

A.2

Financial penalties received

4.9% of the fee payable by the firm for the activity group (see Part 1)

A.3

Financial penalties received

4.9% of the fee payable by the firm for the activity group (see Part 1)

A.4

Financial penalties received

4.9% of the fee payable by the firm for the activity group (see Part 1)

A.5

Financial penalties received

4.9% of the fee payable by the firm for the activity group (see Part 1)

A.6

Financial penalties received

4.9% of the fee payable by the firm for the activity group (see Part 1)

A.7

Financial penalties received

5.6% of the fee payable by the firm for the activity group (see Part 1)

A.9

Financial penalties received

4.9% of the fee payable by the firm for the activity group (see Part 1)

A.10

Financial penalties received

8.7% of the fee payable by the firm for the activity group (see Part 1)

A.12

Financial penalties received

4.9% of the fee payable by the firm for then activity group (see Part 1)

A.13

Financial penalties received

4.9% of the fee payable by the firm for the activity group (see Part 1)

A.14

Financial penalties received

4.9% of the fee payable by the firm for the activity group (see Part 1)

A.18

Financial penalties received

4.9% of the fee payable by the firm for the activity group (see Part 1)

A.19

Financial penalties received

5.4% of the fee payable by the firm for the activity group (see Part 1)

Part 33

This table shows the modifications to fee tariffs that apply to incoming EEA firms and incoming Treaty firms.

Activity group

Percentage deducted from the tariff payable under Part 1 applicable to the firm

Minimum amount payable

A.1

80% (except for a firm operating on a cross-border services basis only)

100 (except for a firm operating on a cross-border services basis only)

For a firm operating on a cross-border services basis only, 100%

For a firm operating on cross-border services basis only, nil

A.3

100%

nil

A.4

25%

100

A.7

5%

100

A.9

5%

100

A.10

10%

100

A.12

10%

100

A.13

10%

100

A.19

10%

100

The modifications to fee tariffs payable by an incoming EEA firm or an incoming Treaty firm apply only in relation to the relevant regulated activities of the firm which are passported activities or Treaty activities and which are carried on in the UK.

FEES 4 Annex 3 Transaction reporting fees1

Transaction reporting fees for the period from 1 April 2007 to 31 March 20082
R

1This table shows the fees payable for firms using the FSA's Transaction Reporting System2.

2

Fee type

Fee amount (including VAT)

Transaction charge

Number of transactions per annum

Fee per transaction (inc. VAT)

For the first 1,000

0p

1,001 - 1,000,000

3p

1,000,001 - 4,000,000

2.75p

4,000,001 - 8,000,000

2.5p

8,000,001 - 13,000,000

2.25p

13,000,001 - 20,000,000

2p

>20,000,000

1.75p

Firms using the Transaction Reporting System will be additionally invoiced for:

2

(a)

[deleted]2

(b)

[deleted]2

(c)

an annual enrolment fee of £235 (including VAT) per registration held on 1 April each year for users of the FSA's 2Transaction Reporting System.

FEES 4 Annex 4 1Periodic fees in relation to collective investment schemes payable for the period 1 April 2007 to 31 March 20082

R

1Part 1 - Periodic fees payable

Scheme type

Basic fee (£)

Total funds/sub-funds aggregate

Fund factor

Fee (£)

ICVC,

AUT,Section 264 of the Act

Section 270 of the Act

6402

2

1-2

3-6

7-15

16-50

>50

1

2.5

5

11

22

6402

1,6002

3,2002

7,0402

14,0802

2 2 2 2 2

Section 272 of the Act

2,6202

2

1-2

3-6

7-15

16-50

>50

1

2.5

5

11

22

2,6202

6,5502

13,1002

28,8202

57,6402

2 2 2 2 2

Fees are charged according to the number of funds or sub-funds operated by a firm as at 31 March 2007.2 Where a new collective investment scheme becomes authorised during a year, fees are charged according to the number of funds or sub-fundsoperated by a firm as at the date of authorisation. Where more than one fund or sub-fundis operated the number of funds (not including the umbrellaor parent fund) produces a 'fund factor' in accordance with the table above which is then applied to a basic fee to produce one total fee per operator. Fund factors are applied per operatorrather than per schemeso that the fees relate to the number of funds rather than the number of schemes. This means that, for example, an authorised fund manager of three schemespays the same as an operatoror authorised fund managerof one schemewith three sub-funds(as only the sub-fundsare counted).

Schemes set up under section 264 of the Act are charged according to the number of funds or sub-fundswhich a firm is operating and marketing into the UK as at 31 March immediately before the start of the period to which the fee applies. For example, for 2007/08fees a reference to 31 March means 31 March 2007.

2

FEES 4 Annex 5 1Periodic fees for designated professional bodies payable in relation to the period 1 April 2007 to 31 March 20083

R

1Table. Fees payable by Designated Professional Bodies

Name of Designated Professional Body

Amount payable

Due date

The Law Society of England & Wales

£50,6803

3

30 April 20073

3

£90,3504

3 4

1 September 20073

3

The Law Society of Scotland

£18,6304

4

1 July 20074

4

The Law Society of Northern Ireland

£16,1504

4

1 July 20074

4

The Institute of Actuaries

£10,2504

4

1 July 20074

4

The Institute of Chartered Accountants in England and Wales

£45,9404

4

1 July 20074

4

The Institute of Chartered Accountants of Scotland

£13,0704

4

1 July 20074

4

The Institute of Chartered Accountants in Ireland

£11,4304

4

1 July 20074

4

The Association of Chartered Certified Accountants

£25,8204

4

1 July 20074

4

The Council for Licensed Conveyancers

£12,7004

4

1 July 20074

4

Royal Institution of Chartered Surveyors

£16,5604

4

1 July 20074

4

Notes

(1) The FSA register includes details of exempt professional firms carrying out insurance mediation activity.

4 2

FEES 4 Annex 6 1Periodic fees for recognised investment exchanges and recognised clearing houses payable in relation to the period 1 April 2007 to 31 March 20082

R

1In this Annex:

- the term recognised body includes a body which was a recognised investment exchange or a recognised clearing house recognised under the Financial Services Act 1986 and which is a recognised body as a result of Regulation 9 of the Recognition Requirements Regulations; and

- the term recognition order includes a recognition order made by the FSA under section 37 or section 39 of the Financial Services Act 1986 or a recognition order made by the Treasury under section 40 of the Financial Services Act 1986.

Part 1 - Periodic fees for UK recognised bodies

Name of UK recognised body

Amount payable

Due date

CRESTCo Limited

£229,0002

2

30 April 20072

2

£293,0003

3

1 September 20073

3

ICE Futures Ltd2

2

£148,5002

2

30 April 220072

£205,5003

3

1 September 20073

3

LIFFE Administration and Management

£252,5002

2

30 April 20072

2

£296,5003

3

1 September 20073

3

LCH Clearnet Limited

£290,5002

2

30 April 20072

2

£280,5003

3

1 September 20073

3

The London Metal Exchange Limited

£166,5002

2

30 April 20072

2

£180,5003

3

1 September 20073

3

London Stock Exchange plc

£332,0002

2

30 April 20072

2

£366,0003

3

1 September 20073

3

virt-x Exchange Ltd

£40,0002

2

30 April 20072

2

£99,0003

3

1 September 20073

3

EDX London Ltd

£32,0002

2

30 April 20072

2

£72,0003

3

1 September 20073

3

NYMEX Europe Limited

£67,5002

2

30 April 20072

2

£20,5003

3

1 September 20073

3

Any other UKrecognised investment exchange recognised as such by a recognition order made in the period

£150,000

30 days after the date on which the recognition order is made

Any other UKrecognised clearing house recognised as such by a recognition order made in the period

£250,000

30 days after the date on which the recognition order is made

Part 2 - Periodic fees for overseas recognised bodies

Name of overseas recognised body

Amount payable

Due date

Cantor Financial Futures Exchange

£20,0003

3

1 July 20073

3

The Chicago Mercantile Exchange

£20,0003

3

1 July 20073

3

Chicago Board of Trade

£20,0003

3

1 July 20073

3

EUREX (Zurich)

£20,0003

3

1 July 20073

3

National Association of Securities and Dealers Automated Quotations (NASDAQ)

£20,0003

3

1 July 20073

3

NQLX LLC

£20,0003

3

1 July 20073

3

New York Mercantile Exchange Inc.

£20,0003

3

1 July 20073

3

The Swiss Stock Exchange

£20,0003

3

1 July 20073

3

Sydney Futures Exchange Limited

£20,0003

3

1 July 20073

3

Warenterminborse Hannover

£20,0003

3

1 July 20073

3

US Futures Exchange LLC7

£20,0003

3

1 July 20073

3

SIS x-clear AG

£50,0003

3

1 July 20073

3

3Eurex Clearing AG

£50,000

1 July2007

Any other overseas investment exchange recognised as such by a recognition order made in the period

£20,0003

3

30 days after the date on which the recognition order is made

Any other overseas clearing house recognised as such by a recognition order made in the period

£50,000

3

30 days after the date on which the recognition order is made

FEES 4 Annex 7 1 2Periodic fees in relation to the Listing Rules for the period 1 April 2007 to 31 March 20082

R

1Fee type

Fee amount

Annual fees for the period 1 April 2007 to 31 March 20082

2

Annual Issuer Fees - all listedissuers of shares, depositary receipts and securitised derivatives. This fee represents the total annual fee for a listedissuer - no additional annual fee is due under the disclosure rules and transparency rules.

(1) For all issuers of securitised derivatives, depositary receipts and global depositary receipts the fees payable are set out in Table 1.

(2) For all other issuers, fees to be determined according to market capitalisation as set out in Table 2. The fee is calculated as follows:

(a) the relevant minimum fee; plus

(b) the cumulative total of the sums payable for each of the bands calculated by multiplying each relevant tranche of the firm's market capitalisation by the rate indicated for that tranche. Where issuers have more than one type of share in issue, the highest market capitalisation of all of its securities in issue is used.

(3) Notwithstanding (2), overseasissuers with a listing of equity securities which is not a primary listing will only pay 80% of the fee otherwise payable under (2).

Annual fees are charged in annual cycles beginning on 1 April of a year and ending on 31 March of the following year. For fees purposes issuers should take into account only equity ordinary shares, including those issued by suspended issuers.

Table 1Annual fees for issuers of securitised derivatives, depositary receipts and global depositary receipts

Issuer

Fee amount

Issuers of securitised derivatives

£3,3402

2

Issuers of depositary receipts and global depositary receipts

£4,0082

2

Table 2

Tiered annual fees for all other issuers

Fee payable

Minimum fee (£)

£3,3402

2

£ million of Market Capitalisation

Fee (£/£m or part £m of Market Capitalisation)

0 - 100

0

>100 - 250

14.572

2

>250 - 1,000

5.8282

2

>1,000 - 5,000

1.93882

2

>5,000 - 25,000

0.03642

2

>25,000

0.00982

2

FEES 4 Annex 8 1 2Periodic fees in relation to the disclosure rules and transparency rules for the period 1 April 2007 to 31 March 20082

R

Annual fees for the period 1 April 2007 to 31 March 20082

2

All non-listed issuers of shares, depositary receipts and securitised derivatives. Annual fees for listed issuers in respect of Disclosure Rules and Transparency Rules obligations are incorporated in the annual fee for listed issuers under the Listing Rules.

(1) For all non-listed issuers of securitised derivatives, depositary receipts and global depositary receipts the fees payable are set out in Table 1.

(2) For all other non-listed issuers, fees to be determined according to market capitalisation as set out in Table 2. The fee is calculated as follows:

(a)

the relevant minimum fee; plus

(b)

the cumulative total of the sums payable for each of the bands calculated by multiplying each relevant tranche of the firm's market capitalisation by the rate indicated for that tranche.

Fees from other fee schedules contained in other sections of the sourcebook may be applicable to a single submission.

Table 1

Annual fees for non-listed issuers of securitised derivatives, depositary receipts and global depositary receipts

Issuer

Fee amount

Issuers of securitised derivatives

£2,6722

2

Issuers of depositary receipts and global depositary receipts

£3,2062

2

Table 2

Fee payable

Minimum fee (£)

2,6722

2

£ million of Market Capitalisation

Fee (£/£m or part £m of Market Capitalisation)

0 - 100

0

>100 - 250

11.6562

2

>250 - 1,000

4.66242

2

>1,000 - 5,000

1.5512

2

>5,000 - 25,000

0.02912

2

>25,000

0.00782

2