Any firm (except an ICVC or a UCITS qualifier)

As specified in FEES 4.3.1 R

(1) Unless (2) or (3) apply7, on or before the relevant dates specified in FEES 4.3.6 R

(2) Unless (3) applies, if 7an 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.7

(3) Where the permission is for operating a multilateral trading facility, the date specified in FEES 4 Annex 10 (Periodic fees for MTF operators).

Firm receives permission, or becomes authorised or registered under the Payment Services Regulations ;9 or firm9extends permission or its payment service activities9

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

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

Sponsors

12,50010 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.6

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 rules6

6All firms reporting transactions in securities derivatives10to the FSA in accordance with SUP 17, and market operators who provide facilities for trading in securities derivatives.10

FEES 4 Annex 9 R

Within 30 days of the date of the invoice

Not applicable

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.

A.1 Deposit acceptors

its permission includes accepting deposits, operating a dormant account fund15 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

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.

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 (a firm falling within this category is a class (1) firm)18;

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 (a firm falling within this category is a class (2) firm)18;

OR

(3) the firm is a venture capital firm (a firm falling within this category is a class (3) firm if it is not a class (1) or (2) firm)18.

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);7

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.

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 (a firm falling within this category is a class (1) firm)18;

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);

giving basic advice on a stakeholder product;7

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.

A firm falling within (2) and not (1) is a class 2 firm.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

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.

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.11

11 B. MTF operators

its permission includes operating a multilateral trading facility.

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).

A.1

MODIFIED ELIGIBLE LIABILITIES

For banks and building societies:16

Part 1:

Liabilities

In sterling:

2 + 3 + 4 + 5A + 5B + 6B + 6C + 6D + 6E + 6F + 6G + 6H + 6J + 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 + E8 + E10 + 60% of E11A + E44 + C2 + C3 + C4 + C5A + C5B + C6B + C6C + C6D + C6E + C6F + C6G + C6H + C6J + C8 + C10 + 60% of C11A: less

Assets

In sterling:

21B + 60% of 22A + 23D + 23E + 23F + 23G +1630A + 30B + 30C +1632AA1 + 32AA28 + 32BA16

plus

In foreign currency, one-third of:

E21B + 60% of E22A + E23D + E23E + E23F + E23G 16+ E30A + E30B + E30C + 16E32AA1 + E32AA2 + 8E32BA + 16C21B + 60% of C22A + C23D + C23E + C23F + C23G 16+ C30A + C30B + C30C +16C32AA1 + C32AA28 + C32BA16

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 45D plus one-third of both E45D and C45D8from the sum of 8item 45BA, plus one-third of both E45BA and C45BA 8in 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 and building societies16to 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.

16

Note :

For a dormant account fund operator the tariff base is not relevant and the flat fee in FEES 4 Annex 2 R is payable.

A.2

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

The number of new mortgage contracts, home purchase plans,14home reversion plans3 and regulated sale and rent back agreements14 entered into;

AND

The number of mortgage contracts, home purchase plans,14home reversion plans3 and regulated sale and rent back agreements14 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,14home reversion plans3 and regulated sale and rent back agreements14 administered include those that the firm administers on behalf of other firms.

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; 11

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.11

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

A.4

ADJUSTED GROSS PREMIUM INCOME AND MATHEMATICAL RESERVES (see 2 G )17

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;11

Less 11

premiums relating to Trustee Investment Plans.11

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 management.11

Less 11

mathematical reserves relating to Trustee Investment Plans.11

Notes:

(1) [deleted]

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

(3)An insurer must include in its calculation of adjusted gross premium income (AGPI) and mathematical reserves (MR) the value of MR and AGPI relating to all risks ceded to ISPVs.134

(4) Trustee Investment Plans are the class of contract of insurance specified in Class III of Part II of Schedule 1 to the Regulated Activities Order (Contracts of long-term insurance) and which are invested in pooled funds beneficially owned by the insurer and not earmarked to individual beneficiaries by that insurer.11

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 as 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.

But not any employees or agents who work solely in the firm's MTF

operation.11

A.11

Not applicable.

A.12

APPROVED PERSONS

The number of persons approved to perform the5customer function (CF 30), but excluding those persons who work solely in the firm'sMTF operation or11 solely acting in the capacity of an investment manager or solely advising clients in connection with corporate finance business or performing functions related to these.5

A.13

APPROVED PERSONS

The number of persons approved to perform the5customer function (CF 30), but excluding those persons who work solely in the firm'sMTF operation or 11solely acting in the capacity of an investment manager or solely advising clients in connection with corporate finance business or performing functions related to these.5

A.14

APPROVED PERSONS

The number of persons approved to perform the customer function (CF 30) who advise clients in connection with corporate finance business or perform related functions.5

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 or regulated sale and rent back mediation activity if they had been carried out on or after 1 July 200914);

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 3or regulated sale and rent back mediation activity if they had been carried out on or after 1 July 200914(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 20073or regulated sale and rent back mediation activity if they had been carried out on or after 1 July 2009.14

(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

(6) The same firm may receive income under paragraph (a) and (c).11

(7) A firm must include in paragraph (a) any income it receives from home finance mediation activity carried on by another person with respect to any home finance transaction into which the firm has entered as lender, plan provider or home purchase provider.11

(8) In calculating the net amount retained, a firm may not deduct amounts that it rebates to a person other than another firm, a person falling within the extended definition of firm in Note (4) or the firm's customer.

(9) A firm may only deduct amounts under paragraph (a) in calculating its net amount retained if the amount is to be deducted from income that the firm must include under paragraph (a). Therefore for example: 11

(a) if a mortgage lender (Firm A) pays a firm commission for arranging a regulated mortgage under which Firm A is a lender, Firm A may not take that expense into account in calculating its annual income if Firm A does not receive a fee from the borrower or another person in respect of that regulated mortgage; and11

(b) if a mortgage lender (Firm A) pays a firm (Firm B) commission for arranging a regulated mortgage under which Firm A is a lender, Firm A receives a payment from the borrower under that transaction and the amount payable to Firm B exceeds the amount payable by the borrower, Firm A may not take that excess into account in calculating its annual income and must instead net the sum payable by the borrower to zero.11

(10) A firm must include in paragraph (a) any survey and booking fees due to it in respect of or in relation to home finance mediation activity or which would been home finance mediation activity if they had been carried on or after the dates in paragraph (a).11

A.19

ANNUAL INCOME(A)13 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 or, in relation to connected travel insurance contracts, from 1 January 2009)9 in relation to general insurance contracts or pure protection contracts;

Plus(B)13 in relation to the activities set out in (A),13 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),13 the amount of premiums receivable on the contracts of insurance resulting from that activity multiplied by 0.07;

Plus(C)13 if the firm is an insurer, in relation to the activities set out in (A),13 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);13 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:

(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, including a connected travel insurance intermediary,9 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 or, in relation to connected travel insurance contracts, from 1 January 2009.9

(5) The same firm may receive income under (A) and (C).13

(6) A firm must include in (A) any income it receives from insurance mediation activity carried on by another person with respect to any general insurance contracts or pure protection contracts into which the firm has entered as insurer.13

(7) In calculating the net amount retained, a firm may not deduct amounts that it rebates to a person other than another firm, a person falling within the extended definition of firm in Note (4) or the firm's customer.13

(8) A firm may only deduct amounts under (A) in calculating its net amount retained if the amount is to be deducted from income that the firm must include under (A). Therefore for example: 13

(a) if an insurer (Firm A) pays a firm commission for arranging a general insurance contract or pure protection contract under which Firm A is the insurer, Firm A may not take that expense into account in calculating its annual income if Firm A does not receive a fee from the insured or another person in respect of that contract; and13

(b) if an insurer (Firm A) pays a firm (Firm B) commission for arranging a general insurance contract or pure protection contract under which Firm A is the insurer, Firm A receives a payment from the insured under that transaction and the amount payable to Firm B exceeds the amount payable by the insured, Firm A may not take that excess into account in calculating its annual income and must instead net the sum payable by the insured to zero.13

B. Market operators

Not applicable.

B. Service companies

Not applicable.11

B. MTF operators 12

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.

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,14home reversion plans3 and regulated sale and rent back agreements14 entered into in the twelve months ending 31 December.

AND

Number of mortgages, home purchase plans,14home reversion plans3and regulated sale and rent back agreements14 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.11

B. MTF operators 11

Not applicable

13(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 by multiplying the value of the firm's tariff base by the rate applicable to each tranche of the tariff base, as indicated (Note 1).

(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 R 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 430.

Note 1

In the case of activity group A.1 there are two tariff rates. The rate in column 1 is the general periodic fee. The rate in column 2 is the reclaim funds set-up fee and is payable by all firms except credit unions and e-money issuers. The total periodic fee for the A1 fee-block is determined by adding the amounts obtained under both columns.

In the case of activity groups A.3 and A.4 there are three tariff rates. The rate in column 1 applies to all firms in their respective fee-blocks. The rate in column 2 relates to the Solvency 2 Implementation fee and firms must determine their obligation to pay this fee by reference to Part 5 of this Annex. The rate in Column 3 relates to the Solvency 2 Special Project fee and firms must determine their obligation to pay this fee by reference to Part 4 of this annex. The total periodic fee for each of these fee-blocks is determined by adding the amounts obtained under all three columns, as applicable.

Activity group

Fee payable

A.1

Band width (£ million of Modified Eligible Liabilities (MELs))

Fee (£/£m or part £m of MELs)

Column 1

General Periodic fee

Column 2

Reclaim Fund Set-Up fee

>10 - 140

29.90

0.12

>140 - 630

29.90

0.12

>630 - 1,580

29.90

0.12

>1,580 - 13,400

37.38

0.12

>13,400

49.34

0.12

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, this fee is calculated as above less 30%.

The tariff rates in A.1 are not relevant for the permissions relating to operating a dormant account fund. Instead a flat fee of 6,018 is payable in respect of these permissions. The flat fee of £6,018 is made up of a portion of the general periodic fee of £6,000 and a reclaim fund set-up fee of £18.

A.2

Band width (No. of mortgages and/or home finance transactions)

Fee (£/mortgage)

>50 - 130

1.26

>130 - 320

1.26

>320 - 4,570

1.26

>4,570 - 37,500

1.26

>37,500

1.26

A.3

Gross premium income (GPI)

Column 1

General periodic fee

Column 2

Solvency 2 Implementation fee

Column 3

Solvency 2 Special Project fee

Minimum fee (£)

Not applicable

50.00

25.00

Band Width (£ million of GPI)

Fee (£/£m or part £m of GPI)

>0.5 - 10.5

531.58

110.45

93.40

>10.5 - 30

531.58

110.45

93.40

>30 - 245

531.58

110.45

93.40

>245 - 1,900

531.58

110.45

93.40

>1,900

531.58

110.45

93.40

PLUS

Gross technical liabilities (GTL)

Column 1 General Periodic fee

Column 2 Solvency 2 Implementation fee

Column 3

Solvency 2 Special Project fee

Band Width (£ million of GTL)

Fee (£/£m or part £m of GTL)

>1 - 12.5

28.39

5.65

5.55

>12.5 - 70

28.39

5.65

5.55

>70 - 384

28.39

5.65

5.55

>384 - 3,750

28.39

5.65

5.55

>3,750

28.39

5.65

5.55

For UK ISPV's the tariff rates are not relevant and a flat fee of £430 is payable in respect of each FSA financial year (the 12 months ending 31 March).

A.4

Adjusted annual gross premium income (AGPI)

Column 1

General Periodic fee

Column 2

Solvency 2 Implementation fee

Column 3

Solvency 2 Special Project fee

Minimum fee (£)

Not applicable

25.00

25.00

Band Width (£ million of AGPI)

Fee (£/£m or part £m of AGPI)

>1 - 5

706.46

137.00

114.60

>5 - 40

706.46

137.00

114.60

>40 - 260

706.46

137.00

114.60

>260 - 4,000

706.46

137.00

114.60

>4,000

706.46

137.00

114.60

PLUS

Mathematical reserves (MR)

Column 1

General Periodic fee

Column 2

Solvency 2 Implementation fee

Column 3(

Solvency 2 Special Project fee

Minimum fee (£)

Not applicable

25.00

25.00

Band Width (£ million of MR)

Fee (£/£m or part £m of MR)

>1 - 20

15.32

3.00

2.95

>20 - 270

15.32

3.00

2.95

>270 - 7,000

15.32

3.00

2.95

>7,000 - 45,000

15.32

3.00

2.95

>45,000

15.32

3.00

2.95

A.5

Band Width (£ million of Active Capacity (AC))

Fee (£/£m or part £m of AC)

>50 - 150

54.55

>150 - 250

54.55

>250 - 500

54.55

>500 - 1,000

54.55

>1,000

54.55

A.6

Flat fee

1,500,514

PLUS

Solvency 2 Special Project Flat fee (£)

249,603.72

PLUS

Solvency 2 Implementation Flat fee (£)

300,100.80

A.7

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

Band Width (£ million of Funds under Management (FuM))

Fee (£/£m or part £m of FuM)

>10 - 150

8.52

>150 - 2,800

8.52

>2,800 - 17,500

8.52

>17,500 - 100,000

8.52

>100,000

8.52

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

Band Width (£ million of Gross Income (GI))

Fee (£/£m or part £m of GI)

>1 - 4.5

1,052.62

>4.5 - 17

1,052.62

>17 - 145

1,052.62

> 145 - 750

1,052.62

>750

1,052.62

A.10

Band Width (No. of traders)

Fee (£/trader)

2 - 3

3,196.91

4 - 5

3,196.91

6 - 30

3,196.91

31 - 180

3,196.91

>180

3,196.91

A.11

This activity group does not apply for this period.

A.12

Band Width (No. of persons)

Fee (£/person)

2 - 5

426.35

6 - 35

426.35

36 - 175

426.35

176 - 1,600

426.35

>1,600

426.35

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

A.13

For class (2) firms:

Band Width (No. of persons)

Fee (£/person)

2 - 3

1,290.54

4 - 30

1,290.54

31 - 300

1,290.54

301 - 2,000

1,290.54

>2,000

1,290.54

For class (1) firms: 1,850 For a professional firm in A.13 the fee is calculated as above less 10%.

A.14

Band Width (No. of persons)

Fee (£/person)

2 - 4

1,340.87

5 - 25

1,340.87

26 - 80

1,340.87

81 - 199

1,340.87

>199

1,340.87

A.15

This activity group does not apply for this period.

A.16

This activity group does not apply for this period.

A.17

This activity group does not apply for this period.

A.18

Band Width ( thousands of Annual Income (AI))

Fee (£/£ thousand or part £ thousand of AI)

>100 - 180

10.54

>180 - 1,000

10.54

>1,000 - 12,500

10.54

>12,500 - 50,000

10.54

>50,000

10.54

A.19

Band Width (£ thousands of Annual Income (AI))

Fee (£/£ thousand or part £ thousand of AI)

>100 - 325

2.43

>325 - 10,000

2.43

>10,000 - 50,750

2.43

>50,750 - 250,000

2.43

>250,000

2.43

B. Market operators

£35,000

B. Service companies

Bloomberg LP

£45,000

EMX Co Ltd

£35,000

LIFFE Services Ltd

£35,000

[row deleted]

OMGEO Ltd

£35,000

Reuters Ltd

£45,000

Swapswire Ltd

£35,000

B. MTF operators

As set out in FEES 4 Annex 10R (Periodic fees for MTF operators).

13(1)

This Part sets out the minimum fee applicable to the firms specified in (3) below.

(2)

The minimum fee payable by any firm referred to in (3) is £1,000 unless:

(a)

it is a credit union that meets the conditions in (4), in which case the minimum fee payable is as set out in (4); or

(b)

it is a non-directive friendly society that falls into the A.3 activity group but not the A.4 activity group and meets the conditions set out in (5)(a), in which case the minimum fee payable is £430; or.

(c)

it is a non-directive friendly society that falls into the A.4 activity group but not the A.3 activity group and meets the conditions in (5)(b), in which case the minimum fee payable is £430; or

(d)

it is a non-directive friendly society that falls into the A.3 and A.4 activity groups and meets the conditions in (5)(a) and (5)(b), in which case the minimum fee payable is £430;

(3)

A firm (including an incoming EEA firm and an incoming Treaty firm) is referred to in this paragraph if it falls within the following activity groups: A.1; A.2; A.3 (excluding UK ISPVs); A.4; A.5; A.7; A.9; A.10; A.12; A.13; A.14; A.18; and A.19 (Note 1).

(4)

The conditions referred to in (2)(a) are that the credit union has a tariff base (Modified Eligible Liabilities) of:

(a)

£0 to 0.5million, in which case a minimum fee of 160 is payable; or

(b)

greater than £0.5millon but less than £2.0million, in which case a minimum fee of £540 is payable.

(5)

The conditions referred to in (2) are that:

(a)

the non-directive friendly society falls into the A.3 activity group and has, for that activity, 0.5 million or less in gross premium income and holds gross technical liabilities of £1.0 million or less;

(b)

the non-directive friendly society falls into the A.4 activity group and has, for that activity, written £1.0 million or less in adjusted gross premium income and holds mathematical reserves of £1.0 million or less.

The figures for gross premium income, gross technical liabilities, adjusted gross premium income and mathematical reserves are the same as used for Part 1 of this Annex.

Note 1

In the case of a firm which is required to pay the Solvency 2 Implementation fee (see Part 5) and, where relevant, the Solvency 2 Special Project fee there is an additional minimum fee set out in Part 1.

A.1

7.5%1310 of the fee payable by the firm for the activity group (see Part 1)

A.2

7.5%1310 of the fee payable by the firm for the activity group (see Part 1)

A.3

7.5%1310 of the fee payable by the firm for the activity group (see Part 1). The deduction does not apply to any Solvency 2 Special Project 13fee (as defined in Part 1)7 or Solvency 2 Implementation fee as applicable under Part 5.10

A.4

7.5%1310 of the fee payable by the firm for the activity group (see Part 1). The deduction does not apply to any Solvency 2 Special Project 13fee (as defined in Part 1)7 or Solvency 2 Implementation fee as applicable under Part 5.10

A.5

7.5%1310 of the fee payable by the firm for the activity group (see Part 1)

A.6

7.5%1310 of the fee payable by the firm for the activity group (see Part 1). The deduction does not apply to any Solvency 2 Special Project flat fee or Solvency 2 Implementation flat fee (as defined in Part 1).10

A.7

7.5%1310 of the fee payable by the firm for the activity group (see Part 1)

A.9

7.5%1310 of the fee payable by the firm for the activity group (see Part 1)

A.10

7.5%1310 of the fee payable by the firm for the activity group (see Part 1)

A.12

9.3%1310 of the fee payable by the firm for then activity group (see Part 1)

A.13

7.8%1310 of the fee payable by the firm for the activity group (see Part 1)

A.14

7.5%1310 of the fee payable by the firm for the activity group (see Part 1)

A.18

7.5%1310 of the fee payable by the firm for the activity group (see Part 1)

A.19

7.5%1310 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 firmswhich have established branches in the UK5.

Activity group

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

A.1

50%13

A.3

9013%

A.4

25%

A.7

5%

A.9

5%

A.10

10%

A.12

10%

A.13

10%

A.19

10%

B. MTF operators 9

Not applicable

Note 113

The modifications to fee tariffs payable by an incoming EEA firm or an incoming Treaty firm which has established a branch in the UK 5apply 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.

13Note 2

The minimum fee described in Part 1A of FEES 4 Annex 2 R applies in full and the modifications in this Part do not apply to it.

7Part 4

This table shows the calculation of the Solvency 2 Special Project 13fee for firms falling into fee block A.3 or A.4.13

(1)

The Solvency 2 Special Project 13fee forms part of the periodic fee payable under fee block A.3 and A.4 (the insurance fee blocks).

(2)

The Solvency 2 Special Project 13fee is only payable by a firm if it meets the conditions in Part (5). In addition13:

(a)

where the firm falls into fee block A.3, the Solvency 2 Special Project fee is only payable with respect to that insurance fee block if the amount of the periodic fees payable by it under FEES 4.3 in respect of the financial year 2009/10 with respect to that insurance fee block was at least 49,00013;10

(b)

where the firm falls into fee block A.4, the Solvency 2 Special Project fee is only payable with respect to that insurance fee block if the amount of the periodic fees payable by it under FEES 4.3 in respect of the financial year 2009/10 with respect to that insurance fee block was at least 55,000.13

(c)

[deleted]13

10(d)

[deleted]13

(3)

[deleted]13

(4)

The prior year 13fee referred to in (2)13for a particular insurance fee block does not take into account13 the Solvency 2 Special Project 13fee or 13the Solvency 2 Implementation fee.10

(5)

[deleted]13

(6)

[deleted]138

(7)

[deleted]13

(8)

[deleted]13

(9)

[deleted]13

(10)

[deleted]13

(11)

FEES 4.2.6 R and FEES 4.2.7 R do not apply to the Solvency 2 Special Project fee.13

10Part 5

This Part sets out when a Solvency 2 Implementation fee is due for firms in the A.3 and A.4 fee-blocks.

(1)

The Solvency 2 Implementation fee is only payable by a firm if it meets all the conditions in (2) and neither of the conditions in (3).

(2)

The conditions in this paragraph are:

(a)

FEES 4.3.13 R (Firms Applying to Cancel or Vary Permission Before Start of Period) does not apply with respect to the relevant fee-blocks;

(b)

the firm has not notified the FSA before the start of the financial year 2010/1113 that it intends to migrate out of the United Kingdom for regulatory purposes before the Solvency 2 Directive13 is implemented;

(c)

it meets either of the following conditions:13

(i) its gross premium income or adjusted gross premium income, as appropriate, referred to in R Part 2, exceeds EUR 5 million at the end of the financial year ended in the calendar year ending 31 December prior to the FSA financial year; or

(ii) its gross technical liabilities or mathematical reserves, as appropriate, referred to in R, Part 2, exceed EUR 25 million at the end of the financial year ended in the calendar year ending 31 December prior to the FSA financial year;13

(d)

it was in one or both of the insurance fee blocks at the start of the financial year 2010/11;13

13(e)

it is not an incoming EEA firm or an incoming Treaty firm.

(3)

The conditions in this paragraph are:

(a)

the firm is a reinsurance undertaking that has, by 10 December 2007, ceased to conduct new insurance business and only administers its existing portfolio in order to terminate its activity as a reinsurance undertaking;

(b)

it is a reinsurance undertaking whose insurance business is conducted or fully guaranteed by the United Kingdom government for reasons of substantial public interest in the capacity of reinsurer of last resort.

(4)

Where a firm has notified the FSA that it intends to migrate out of the United Kingdom for regulatory purposes before the Solvency 2 Directive13is implemented in the United Kingdom but when the Solvency 2 Directive13is implemented that firm remains in the United Kingdom for regulatory purposes, it must pay the Solvency 2 Implementation fee for each financial year commencing 1 April 2009 for which the Solvency 2 Implementation fee would have applied to the firm but for the firm notifying the FSA of its intention to migrate.

(5)

Where a firm is required to pay a Solvency 2 Implementation fee because of the circumstances described in (4) it must pay this fee within 30 days of the date of the invoice.

(6)

For the purposes of this Part, the exchange rate from the Euro to the pound sterling is calculated as at the last day of the October preceding the financial year of the FSA in question for which the exchange rates for the currencies of all European Union member states were published in the Official Journal of the European Union.

13(7)

FEES 4.2.6 R and FEES 4.2.7 R do not apply to the Solvency 2 Implementation fee.

Transaction charge

Number of transactions per annum

Fee per transaction

For the first 1,000

0p

1,001 - 1,000,000

1.91p4

1,000,001 - 4,000,000

1.70p4

4,000,001 - 8,000,000

1.49p4

8,000,001 - 13,000,000

1.28p4

13,000,001 - 20,000,000

1.06p4

>20,000,000

0.85p4

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

(a)

[deleted]2

(b)

[deleted]2

(c)

an annual enrolment fee of £2004 per registration held on 1 April each year for users of the FSA's 2Transaction Reporting System.

ICVC,

AUT,Section 264 of the Act

Section 270 of the Act

5607

1-2

3-6

7-15

16-50

>50

1

2.5

5

11

22

5607

1,4007

2,8007

6,1607

12,3207

Section 272 of the Act

2,2807

1-2

3-6

7-15

16-50

>50

1

2.5

5

11

22

2,2807

5,7007

11,4007

25,0807

50,1607

The Law Society of England & Wales

£34,54510

30 April 201010

£48,56598

1 September 201098

The Law Society of Scotland

£14,62098

1 July201098

The Law Society of Northern Ireland

£13,38098

1 July 201098

The Institute of Actuaries

£10,13098

1 July 201098

The Institute of Chartered Accountants in England and Wales

£27,35098

1 July 201098

The Institute of Chartered Accountants of Scotland

£11,45098

1 July 201098

The Institute of Chartered Accountants in Ireland

£10,70098

1 July 201098

The Association of Chartered Certified Accountants

£18,04098

1 July 201098

The Council for Licensed Conveyancers

£11,29098

1 July 201098

Royal Institution of Chartered Surveyors

£14,39098

1 July 201098

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.

Euroclear UK & Ireland Limited4

£277,5009

30 April 420109

£372,50087

1 September201087

ICE Futures Europe Ltd4

£230,0009

30 April 420109

£280,00087

1 September201087

LIFFE Administration and Management

£325,0009

30 April 420109

£475,00087

1 September201087

LCH Clearnet Limited

£298,0009

30 April 420109

£452,00087

1 September201087

The London Metal Exchange Limited

£198,0009

30 April 420109

£277,00087

1 September201087

London Stock Exchange plc

£261,0009

30 April 420109

£409,00087

1 September20108

EDX London Ltd

£42,5009

30 April 420109

£77,50087

1 September201087

PLUS Markets Plc4

£97,5009

30 April 20109

£122,50087

1 September 201087

European Central Counterparty Limited4

£163,5009

30 April 20109

£211,50087

1 September 201087

ICE Clear Europe Limited4

£184,0009

30 April 20109

£366,00087

1 September 201087

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

The Chicago Mercantile Exchange (CME) (ROIE)7

£40,0008

1 July201087

Chicago Board of Trade

£40,00087

1 July201087

EUREX (Zurich)

£40,00087

1 July201087

National Association of Securities and Dealers Automated Quotations (NASDAQ)

£40,00087

1 July201087

New York Mercantile Exchange Inc.

£40,0008

1 July201087

The Swiss Stock Exchange

£40,0008

1 July201087

Sydney Futures Exchange Limited

£40,0008

1 July201087

5ICE Futures US Inc

£40,0008

1 July 201087

8NYSE Liffe US

£40,000

1 July 2010

SIS x-clear AG

£100,0008

1 July201087

3Eurex Clearing AG

£200,0008

1 July201087

5ICE Clear US Inc

£70,0008

1 July 201087

5Chicago Mercantile Exchange (CME) (ROCH)7

£200,0008

1 July 201087

8European Multi-Lateral Clearing Facility

£100,000

1 July 2010

Cassa di Compensazione e Garanzia (CC&G)

£70,000

1 July 2010

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

3 5£40,0009

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

£70,0009

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

Annual fees for the period 1 April 2010 to 31 March 20116

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 at the last business day of the November prior to the FSA financial yearin which the fee is payable,5 are 3as 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 listingpremium listing6will 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.

Issuers of securitised derivatives

£3,70063

Issuers of depositary receipts and global depositary receipts

£4,44063

Minimum fee (£)

£3,70063

£ million of Market Capitalisation as at the last business day of the November prior to the FSA financial year in which the fee is payable5

Fee (£/£m or part £m of Market Capitalisation as at the last business day of the November prior to the FSA financial year in which the fee is payable)5

0 - 100

0

>100 - 250

23.59335664

>250 - 1,000

9.43671664

>1,000 - 5,000

5.80868664

>5,000 - 25,000

0.14169264

>25,000

0.04577764

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.

Issuers of securitised derivatives

£2,96053

Issuers of depositary receipts and global depositary receipts

£3,55253

Minimum fee (£)

2,96053

£ million of Market Capitalisation

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

0 - 100

0

>100 - 250

18.87468554

>250 - 1,000

7.54937354

>1,000 - 5,000

4.64694954

>5,000 - 25,000

0.11335354

>25,000

0.03662254

Number of relevant contracts entered into by the firm during the relevant period

Fee amount

0 - 100

£0

101 - 1,000

£55032

1,001 - 100,000

£2,77532

100,001 - 1,000,000

£8,3403

1,000,001 - 5,000,000

£20,0003

5,000,001 - 20,000,000

£35,4353

>20,000,000

£54,0003

Fee amount for market operators

Market operators providing facilities for trading in securities derivatives3that do not identify those securities derivatives3using an International Securities Identity Number.

£10,3003

2Baikal Global Ltd

25,000

Barclays Bank Plc

3,6002

BATS Trading Ltd

80,0002

BGC Brokers L.P

3,6002

Cantor Index Limited

7,7502

CantorCO2e Limited

3,6002

Chi-X Europe Limited

125,0002

EuroMTS Limited

30,0002

GFI Brokers Limited

3,6002

GFI Securities Limited

3,6002

ICAP Electronic Broking Limited

6,0002

ICAP Energy Limited

3,6002

ICAP Europe Limited

3,6002

ICAP Shipping 2Tanker Derivatives Limited

3,6002

ICAP Securities Limited

3,6002

ICAP WCLK Limited

3,6002

Liquidnet Europe Limited

70,0002

MF Global UK Limited

3,3002

My Treasury Limited

3,6002

NASDAQ OMX Europe Limited

70,0002

2SmartPool Trading Limited

20,000

TFS-ICAP Limited

3,6002

Tradeweb Europe Limited

12,5002

Tradition (UK) Limited

3,6002

Tradition Financial Services Limited

3,6002

Tullett Prebon (Europe) Limited

3,6002

Tullett Prebon (Securities) Limited

3,6002

Turquoise Services Limited

80,0002

Any other firm whose permission includes operating a multilateral trading facility, including:

(a) an EEA firm; or

(b) a firm that, during the course of the relevant financial year, receives permission for operating a multilateral trading facility or whose permission is extended to include this activity.

In the case of an EEA firm that:

(a) has not carried on the activity of operating a multilateral trading facility in the UK at any time in the calendar year ending 31 December 2009;2 and

(b) notifies the FSA of that fact by the end of March 20102;

the fee is zero.

Information required under (b) is to be treated as information required under FEES 4.4 (Information on which Fees are calculated)

In any other case: £30002

In the case of a firm that, during the course of the relevant financial year, receives permission for operating a multilateral trading facility or whose permission is extended to include this activity, within 30 days of receiving that permission or extension.

In any other case, 1 July 20102

2Part 1 - Method for calculating the fee

(1)

The periodic fee for fee-paying payment service providers is calculated by adding the minimum fee to an additional fee calculated by multiplying the tariff base identified in Part 3 of FEES 4 Annex 11 by the appropriate rates applying to each tranche of the tariff base as indicated in the table at Part 5. For small payment institutions and small e-money issuers the tariff rates are not relevant and a flat fee is payable.

(2)

A fee-paying payment service provider 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 3 of FEES 4 Annex 11 is 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 fee-paying payment service provider which is required to comply with FEES 4.4.9 D (Information on which fees are calculated) and has not done so 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 £650.

Part 2 - Activity groups

This table shows how the payment services performed by fee-paying payment service providers are linked to activity groups (fee-blocks). A fee-paying payment service provider can use the table to identify which fee-blocks it falls into based on its authorisation or registration.

Activity group

Fee payer falls into this activity group if:

G.2 Certain deposit acceptors and e-money issuers

it is a fee-paying payment service provider not falling within any of the other fee-blocks in this table

G.3 Large payment institutions

it is an authorised payment institution an EEA authorised payment institution or the Post Office Limited

G.4 Small payment institutions

it is a small payment institution or a small e-money issuer

G.5 - Other institutions

it is the Bank of England or a government department or local authority that provides payment services other than when carrying out functions of a public nature.

Part 3

This table indicates the tariff base for each fee-block. The tariff base is the means by which the FSA measures the amount of business conducted by fee-paying payment service providers.

Activity Group

Tariff base