Reset to Today

To access the FCA Handbook Archive choose a date between 1 January 2001 and 31 December 2004.

Content Options:

Add to favourites

View Options:

More Resources:

External link Handbook Publications

FEES 4.1 1Introduction

Application

FEES 4.1.1 R

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

FEES 4.1.1A R RP

4A reference to firm in this chapter includes a reference

to a fee-paying payment service provider and a fee-paying electronic money issuer6.

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 1A to 11. FEES 4 Annex 12 G194 provides guidance on the calculation of certain tariffs.5 Most of the provisions of the Annexes will vary from one fee year19 to another. Accordingly fresh FEES 4 Annexes will come into force, following consultation, for each fee year19.

4 19 19 19 9
FEES 4.1.4 G RP
  1. (1)

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

  2. (2)

    [deleted]8

    28
  3. (3)

    4The periodic fees for fee-paying payment service providers , fee-paying electronic money issuers6and issuers of regulated covered bonds7are set out in FEES 4 Annex 11. This annex sets out the activity groups, tariff base, valuation dates and, where applicable, the flat fees due for these firms.

    77
FEES 4.1.5 G RP

The Society of Lloyd's, which has permission, has its own fee block.

18
FEES 4.1.6 G

[deleted]19

19
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 and, if applicable, FEES 4.2.11AR65 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 the applicable65 table, as adjusted by any relevant provision in this chapter:

65
  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 and/or FEES 4.2.11AR65 (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 and/or FEES 4.2.11AR65 (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 and/or FEES 4.2.11AR65 (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 and/or FEES 4.2.11AR65 (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) 64

    [deleted]64

FEES 4.2.2A G RP

64A recognised body may also have obligations to pay fees to the FCA 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 FCA64 will issue invoices in respect of the FCA and PRA64 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.

64

Method of payment

FEES 4.2.4 R RP
  1. (1)

    A64 periodic fee must be paid using either direct debit, credit transfer (BACS/CHAPS), cheque, Maestro1166, Visa Debit21 or by credit card (Visa/Mastercard only). Any payment by permitted credit card must include an additional 2% of the sum paid.1

    1641166
  2. (2)

    [deleted]64

    64
FEES 4.2.4A R RP

64The FCA does not specify a method of payment for a recognised body or a designated professional body.

FEES 4.2.5 G RP

The FCA 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 fee year64

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 and/or FEES 4.2.11AR65, 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 fee year64, the periodic fee required under FEES 4.2.1 R is modified for:

    64
    1. (a)

      firms (other than AIFM qualifiers,18ICVCs 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 or FEES 4.2.11A R65, in accordance with the table below.

    2. Period in which event (in column 4 of the table in FEES 4.2.11 R or FEES 4.2.11AR65) occurs

    Proportion of periodic fee payable

    65Fees payable to the FCA

    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%

    65Fees payable to the PRA for fee year 2013/14

    651 April to 30 June inclusive

    100%

    651 July to 30 September inclusive

    75%

    651 October to 31 December inclusive

    50%

    651 January to 28 February inclusive

    25%
  2. (2)

    For recognised bodies, if the recognition order is made during the course of the relevant fee year64, the periodic fee required is set out in Column (4) of the table in FEES 4.2.11 R.

    64
FEES 4.2.7 R

A firm (other than an5AIFM qualifier,18ICVC or UCITS qualifier) which becomes authorised or registered, 12or whose permission and/or payment service activities are 9extended, during the course of the fee year65 must pay a fee which is calculated by:

9 65
  1. (1)

    identifying each of the tariffs set out in Part 1 of 65Part 1 of FEES 4 Annex 2AR, FEES 4 Annex 2BR65 and/or Part 1 of65FEES 4 Annex 11 as appropriate9 for the relevant fee year65 that apply to the firm only after the permission is received or extended or payment service activities are authorised or registered 12or extended or electronic money issuance activities are authorised or registered under the Electronic Money Regulations,129 but ignoring:

    65
    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 the applicable65 tariffs which is the higher of:

    65
    1. (a)

      any applicable minimum fee specified in relation a particular tariff in FEES 4 Annex 2AR or FEES 4 Annex 2BR (but note, for the avoidance of doubt, that these are not the A.0 or PA.0 minimum fees set out under Part 2 of FEES 4 Annex 2AR and Part 2 of FEES 4 Annex 2BR); and65

      65
    2. (b)

      the result of applying the tariff to the projected valuation, for its first year (as provided in the course of the firm's application), of the business to which the tariff relates;

      5
  3. (3)

    adding together the amounts calculated under (2) in relation to fees payable to the FCA and, if applicable, separately adding together the amounts calculated under (2) in relation to the fees payable to the PRA;65;

    10
  4. (4)

    working out whether an A.0 or a PA.0 minimum fee is payable under Part 2 of FEES 4 Annex 2AR or Part 2 of FEES 4 Annex 2BR (except that that minimum fee is not payable again by a firm whose permission is extended if the fee was already payable before the extension);657

    1065
  5. (4A)

    working out whether an AP.0 FCA prudential fee is payable under Part 2 of FEES 4 Annex 2AR and if so how much;65

  6. (4B)

    working out whether a PT.1 PRA transitional fee is payable under Part 2 of FEES 4 Annex 2BR and if so how much;65

  7. (5)

    10adding together the amounts calculated under (3), (4) and (4A) that relate to fees payable to the FCA and then adding this sum to any applicable flat rate and, if applicable, separately adding together the amounts calculated under (3), (4) and (4B) that relate to fees payable to the PRA and then adding this sum to any applicable flat rate fee; and22

    65
  8. (6)

    modifying the result for the FCA and, if applicable, the PRA65 as indicated by the tablein FEES 4.2.6 R (except that FEES 4 Annex 10 (Periodic fees for MTF operators) deals with a firmthat receives permission for operating a multilateral trading facility or has its permission extended to include this activity during the course of the relevant fee year65 and FEES 4.2.6 R does not apply).

    65
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 registered,12 or the date its 9permission and/or payment service activities are 9extended. That information will be used to calculate the periodic fee for the remainder of the fee year64 in which the firm was authorised or registered 12or its permission and/or payment service activities were 9extended (adjusted in accordance with FEES 4.2.7 R) and to calculate the periodic fee for the following fee year64. Projected valuations are not relevant for those fee payers that are only required to pay fixed fees. 9

9 64 64
FEES 4.2.7B R
  1. (1)

    7This rule deals with the calculation of:

    1. (a)

      a firm's fees for its second and subsequent17fee year.65 These are17 the fee years65 years17 following the fee year65 in which it was given permission and/or was authorised or registered 12 under the Payment Services Regulations or the Electronic Money Regulations12 or had its permission and/or payment services activities extended (the relevant permissions); and9

      965176565176565
    2. (b)

      the tariff base for the fee block or fee blocks that relate to each of the relevant permissions. 9

      9
  2. (2)

    17The starting point for calculating the fees referred to in (1)(a) is determining whether or not the firm's tariff base for the relevant fee year65 can be calculated using data from a complete period (as specified in Part 5 of FEES 4 Annex 1AR, Part 5 of FEES 4 Annex 1BR65 or Part 4 of65FEES 4 Annex 11 R) that begins on or after the date that the firm obtained the relevant permission to which that tariff base relates.

    8817
    1. (a)

      If it can, the firm must use that data for calculating its tariff base.

    2. (b)

      If it cannot, the tariff base must be calculated using the projected valuations for its first year of the business to which the tariff relates (as provided in the course of the firm's application), unless (5)(b) or 5(c) applies.

  3. (3)

    This rule does not apply to a firm with a permission for operating a multilateral trading facility.

  4. (4)

    [deleted]65

    65
  5. (5)
    1. (a)

      [deleted]

      9
    2. (b)

      If a firm:17

      17
      1. (i)

        receives a relevant permission9 between 1 April and 31 December inclusive; and

        9
      2. (ii)

        is, but for this rule, required to calculate its tariff base for that relevant permission 9by reference to the average of its modified eligible liabilities for October, November and December;

      it must calculate that tariff base as at the December before the start of the fee year65.

      65
    3. (c)

      If a firm:17

      17
      1. (i)

        is, but for this rule, required to calculate its tariff base for the relevant permission by reference to the firm's financial year ended in the calendar year ending on the 31 December before the start of the fee year65 and, since obtaining the relevant permission, the firm has yet to complete a full financial year ended in the calendar year ending on the 31 December before the start of the fee year;65 or17

        917
      2. (ii)

        is, but for this rule, required to calculate its tariff base by reference to the twelve months ending on the 31 December before the start of the fee year65 and, since obtaining the relevant permission, the firm has yet to complete a full twelve months ending on the 31 December before the start of the fee year;6517

        999999917

      it must calculate the tariff base under (d) below unless it is in its second fee year65 and was authorised between 1 January and 1 April (in which case it must use the projected valuations provided for in (2)(b) above).

    4. (d)

      If a firm satisfies either of 17the conditions in (c) it must calculate its tariff base as follows:

      1. (i)

        it must use actual data in relation to the business to which the tariff relates rather than projected valuations;

      2. (ii)

        in respect of firms satisfying condition (5)(c)(i), 17the tariff is calculated by reference to the period beginning on the date it acquired the relevant permission relating to the tariff,9 and ending on either 17the 31 December before the start of thefee year65 or, if earlier, the start date of the firm's financial year; and

        in respect of firms satisfying condition (5)(c)(ii), the tariff is calculated by reference to the period beginning on the date on which it acquired the relevant permission, and ending on the 31 December before the start of the fee year17

        965
      3. (iii)

        the figures are annualised by increasing them by the same proportion as the period of 12 months bears to the period starting from when the firm received its relevant 9permission to to the relevant period end date specified in (ii).

        999
    5. (e)

      Where a firm is required to use the method in (d) it must notify the FCA (in its own capacity and, if applicable, in its capacity as collection agent for the PRA)65 of this by the date specified in FEES 4.4 (Information on which Fees are calculated).

      65
    6. (f)

      Where a firm is required to use actual data under this ruleFEES 4 Annex 1AR Part 5, FEES 4 Annex 1BR Part 565 and FEES 4 Annex 11 Part 4, are modified, where applicable,65 in relation to the calculation of that firm's valuation date in the fee years65 to which this rule applies.17

      659917

Application of FEES 4.2.7BR

FEES 4.2.7C G

7The table below sets out the period within which a firm's tariff base is calculated (the data period) for second year fees calculated under FEES 4.2.7B R. The example is based on a firm that acquires permission on 1 November 2009 and has a financial year ending 31 March. Where valuation dates fall before the firm receives permission it should use projected valuations in calculating its fees.

References in this table to dates or months are references to the latest one occurring before the start of the appropriate regulator's64fee year64 unless otherwise stated.

64 64

Type of permission acquired on 1 November

Tariff base

Valuation date but for FEES 4.2.7BR

Data period under FEES 4.2.7BR

Accepting deposits (monthly reporting firms)

Modified eligible liabilities (MELs)

Average of the MELs for October, November, December - so projected valuations will be used

MELs for December 2009.

Accepting deposits (quarterly reporting firms)

MELs

December 2009

December 2009.

Entering into a home finance transaction

Number of mortgages, home purchase plans or home reversion plans entered into

12 months ending 31 December 2009 - so projected valuations will be used

1 November to 31 December 2009.

Effecting contracts of insurance

(Insurers - general)

Gross premium income and gross technical liabilities

31 March 2009 - so projected valuations will be used

1 November to 31 December 2009.
FEES 4.2.7D R

15If an issuer of a regulated covered bond becomes registered after 31 December its valuation date will be calculated in the manner described in 1 R Part 4.

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, and which are not provided on a cross border services basis.4 For payment services and electronic money issuance, 12the adjustment only applies to the business to which the calculation made in FEES 4.3.12A R relates. 9

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 appropriate regulator 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 FEES 4.2.11AR65; or

  2. (2)

    a firm reduces its permission or payment services activities 9so that it then falls out of the fee-block previously applied to it;9

    9

(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), 9FEES 4.3.6R (4) or FEES 4.3.6R (4A)9 (Time and method for payment) applies, that date would otherwise fall on or before the 30th day after the date on which the FCA (in its own capacity or in its capacity as agent for the PRA)64 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 FCA64 sends the notification.

    96464
FEES 4.2.11 R RP

Table of periodic fees payable to the FCA65

65

1 Fee payer

2 Fee payable

3 Due date

4 Events occurring during the period leading to modified periodic fee

Any firm (except an AIFM qualifier,25ICVC or a UCITS qualifier)

As specified in FEES 4.3.1 R in relation to FEES 4 Annex 2AR and FEES 4 Annex 11 R65

(1) Unless (2) or (3) apply7, on or before the relevant dates specified in FEES 4.3.6 R.12

(2) Unless (3) applies, if 7an event specified in column 4 occurs during the course of a fee year,64 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).

7 7 64

Firm receives permission, or becomes authorised or registered under the Payment Services Regulations or the Electronic Money Regulations12;9 or firm9extends permission or its payment service activities916

9

Persons who hold a certificate issued by the FCA64 under article 54 of the Regulated Activities Order (Advice given in newspapers etc.)

64

£1,000

(1) Unless (2) applies, on or before 1 August or, if later, within 30 days of the date of the invoice23

(2) If an event in column 4

occurs

during the course of a fee year,64 30 days after the occurrence of that event

23 64

Certificate issued to person by FCA64 under Article 54 RAO

64

Any manager of an AUT23;

23

In relation to each unit trust the amount specified in part 1 of 25FEES 4 Annex 4

Authorisation order is made in relation to the relevant scheme24

24Any authorised fund manager of an authorised contractual scheme;

In relation to each authorised contractual scheme the amount specified in part 1 of25FEES 4 Annex 4

Any ACD of an ICVC; and

In relation to each ICVC,25 the amount specified in part 1 of25FEES 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 part 1 of25FEES 4 Annex 4

The relevant scheme becomes a recognised scheme25

Not applicable

UK recognised body

FEES 4 Annex 6 , part 1 for a UK RIE ; and

FEES 4 Annex 6 R , part 1A for a UK RIE that is also an RAP13

65

(1) On or before the relevant dates specified in FEES 4.3.6 R23

(2) If the event in column 4 occurs during the course of a fee year64, 30 days after the occurrence of that event

23 64

Recognition order is made.

The modified1166 periodic fee is specified in FEES 4 Annex 6 R, Part 1and (in the case of an RAP) Part 1A.131166

11 66 11 66 11 66 11 66

ROIE 65

65

FEES 4 Annex 6 , part 2

(1) On or before the relevant dates specified in FEES 4.3.6 R23

(2) If the event in column 4 occurs during the course of a fee year64, 30 days after the occurrence of that event.

23 64

Recognition order is made.

The modified1166 periodic fee is specified in FEES 4 Annex 6, Part 2.1166

11 66 11 66 11 66 11 66

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

£25,000231210 per year for the period from 1 April to 31 March the following year (see Note)2

10 12 23

Within 30 days of the date of the invoice

(1)14Approval of sponsor, unless (2) applies.14

(2) In the case of approval of a sponsor following a change of legal status in accordance with FEES 3 Annex 1 R Part 7, the balance of the fee otherwise due from the original sponsor.

Where a payment is made in accordance with (2) the original sponsor's obligation to pay that fee ceases.14

All non-listed issuers (in DTR) of shares, depositary receipts and securitised derivatives.6

6

FEES 4 Annex 8 , except for Table 329

Within 30 days of the date of the invoice

Non-listed issuer (in DTR) becomes subject to disclosure rules and transparency rules629

29Any primary information provider

FEES 4 Annex 8 , Table 3

Within 30 days of the date of the invoice

A person is approved as a primary information provider

6All firms reporting transactions in securities derivatives10to the FCA64 in accordance with SUP 17, and market operators who provide facilities for trading in securities derivatives.10

64 10

FEES 4 Annex 9 R

Within 30 days of the date of the invoice

Not applicable

15Any issuer of a regulated covered bond.

FEES 4 Annex 11R

(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 fee year64, 30 days after the occurrence of that event or, if later, the dates specified in FEES 4.3.6 R

64

A person becomes registered as an issuer of a regulated covered bond

26(i) An AIFM (other than a UK AIFM or an EEA AIFM with a branch in the UK) which has notified the FCA of its intention to market an AIF in the UK under regulation 57 of the AIFMD UK regulation and which has not ceased to market that AIF in the UK as at 1 April of the current fee year.

(ii) An AIFM which has notified the FCA of its intention to market an AIF in the UK under regulation 58 or 59 of the AIFMD UK regulation and which has not ceased to market that AIF in the UK as at 1 April of the current fee year.

For each notification made by the AIFM of the kind specified in part 2 of FEES 4 Annex 4, the amount specified in part 2 of FEES 4 Annex 4

(1) Unless (2) applies, on or before 1 August, or, if later, within 30 days of the date of the invoice

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

The FCA receives a notification to market in the UK

26A small registered UK AIFM

The basic fee contained in part 3 of FEES 4 Annex 4

The AIFM is registered by the FCA under regulation 10 of the AIFMD UK regulation.

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 AIFM qualifiers, ICVCs and UCITS qualifiers)13

FEES 4.3.1 R RP

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

  1. (1)

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

    7
  2. (1A)

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

  3. (2)

    any deductions from the periodic fee specified in Part 2 of FEES 4 Annex 2AR, FEES 4 Annex 2BR or Part 7 of2727FEES 4 Annex 11. 7

    2727
FEES 4.3.2 G RP
  1. (1)

    The amount payable by each firm will depend upon the category (or categories) of regulated activities or payment services7it is engaged in (fee-blocks)and whether it is issuing electronic money,10 and on the amount of business it conducts in each category (tariff base). The fee-blocks and tariffs are identified in FEES 4 Annex 1AR in respect of the FCA and FEES 4 Annex 1BR in respect of the PRA2727 (and guidance on calculating certain of the tariffs is at FEES 4 Annex 12 G and ) ,8 while 27FEES 4 Annex 2AR in respect of the FCA and FEES 4 Annex 2BR in respect of the PRA set27 out the tariff rates for the relevant fee year.26 In the case of firms that provide payment services and/or issue electronic money10, the relevant fee blocks, tariffs and rates are set out in FEES 4 Annex 11.7

    26
  2. (2)

    Incoming EEA firms,incoming Treaty firms,10EEA authorised payment institutions7 and EEA authorised electronic money institutions10receive a discount to reflect the reduced scope of the appropriate regulator'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 appropriate regulator and Home state regulators for firms in each fee-block (see FEES 4.3.11 G,7FEES 4.3.12 R and FEES 4.3.12A R).7

    77

Calculation of periodic fee (excluding fee-paying payment service providers and fee-paying electronic money issuers)10

FEES 4.3.3 R RP

The periodic fee referred to in FEES 4.3.1 R is (except in relation to the Society,10fee-paying payment service providers and fee-paying electronic money issuers)107 calculated as follows:

  1. (1)

    identify each of the tariffs set out in Part 1 of FEES 4 Annex 2AR and Part 1 of FEES 4 Annex 2BR2727 which apply to the business of the firm for the period specified in that annex;

  2. (2)

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

    279
  3. (3)

    add together the amounts calculated under (2) in relation to fees payable to the FCA and, if applicable, separately add together the amounts calculated under (2) in relation to the fees payable to the PRA27;

    9
  4. (4)

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

    927
  5. (4A)

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

  6. (4B)

    27work out whether a PT.1 PRA transitional fee is payable under Part 2 of FEES 4 Annex 2BR and if so how much;

  7. (5)

    9add together the amounts calculated under (3), (4) and (4A) that relate to fees payable to the FCA and, if applicable, separately adding together the amounts calculated under (3), (4) and (4B) that relate to fees payable to the PRA27; and

  8. (6)

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

    1. (a)

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

      26
    2. (b)

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

      26

Calculation of periodic fee for fee-paying payment service providers and fee-paying electronic money issuers107

FEES 4.3.3A R RP

7The periodic fee referred to in FEES 4.3.1 R in relation to fee-paying payment service providers and fee-paying electronic money issuers10 is calculated in accordance with FEES 4 Annex 11 R.

Modification for firms with new or extended permissions

FEES 4.3.4 G RP
  1. (1)

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

    26
  2. (2)

    Similarly a firm which extends its permission or its right to provide particular payment services7so that its business then falls within additional fee blocks will be required to pay a further periodic fee under this section for those additional fee blocks, but discounted to reflect the proportion of the year for which the firm has the extended permission or payment services activity 7 - see FEES 4.2.6 R and FEES 4.2.7 R.

  3. (3)

    These provisions apply (with some changes) to incoming EEA firms,10incoming Treaty firms, EEA authorised payment institutions and EEA authorised electronic money institutions.10

  4. (4)

    5These provisions do not apply to a firm's periodic fees in relation to its permission for operating a multilateral trading facility obtained from the FCA26 during the course of a fee year.26

    2626

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 27FEES 4 Annex 2AR and FEES 4 Annex 2BR27.

Time of payment

FEES 4.3.6 R RP
  1. (1)

    Subject to FEES TP 8, if27 the firm's, designated professional body's, recognised investment exchange's, 12or regulated covered bondissuer's11periodic fee for the previous fee year27 was at least £50,000, it11 must pay the FCA:27

    272711
    1. (a)

      an amount equal to 50% of the FCA27 periodic fee payable for the previous fee year, by 30 April or, if later, within 30 days of the date of the invoice, in the fee year27 to which the sum due under FEES 4.2.1 R relates; and

      27
    2. (b)

      the balance of the FCA27 periodic fee due for the current fee year by 1 September or, if later, within 30 days of the date of the invoice, in the fee year27 to which that sum relates.

      27
  2. (1A)

    27Subject to FEES TP 8, if the firm is also a PRA-authorised person and its periodic fee for the previous fee year was at least 50,000, it must pay the PRA (through the FCA acting as its collection agent):

    1. (a)

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

    2. (b)

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

  3. (1B)

    2727If the firm paid periodic fees to both the FCA and the PRA in the previous fee year, FEES 4.3.6R (1) and (1A) only apply if the firm's combined FCA and PRA periodic fees for that fee year were at least £50,000.

  4. (2)

    If the firm's, designated professional body's, recognised investment exchange's, 12or regulated covered bondissuer's11periodic fee for the previous fee year26 was less than £50,000, it11 must pay the periodic fee due in full by 1 August or, if later, within 30 days of the date of the invoice27 in the fee year26 to which that sum relates.

    261126
  5. (3)

    If a firm has applied to cancel its Part 4A permission26 in the way set out in SUP 6.4.5 D (Cancellation of permission), or its status as a payment institution under regulation 10 of the Payment Services Regulations (Cancellation of authorisation) or as regulation 10 is applied by regulation 14 of the Payment Services Regulations (Supplementary provisions), or its status as an electronic money issuer under regulation 10 of the Electronic Money Regulations (Cancellation of authorisation) or as regulation 10 is applied by regulation 15 of the Electronic Money Regulations (Supplementary provisions), 10then (1) and (2) do not apply but it must pay the total amount due when the application is made.

    26
  6. (4)

    If the appropriate regulator26 has exercised its own-initiative powers to cancel a firm's2Part 4A permission26, then (1) and (2) do not apply but the firm must pay the total amount due immediately before the cancellation becomes effective.

    26226
  7. (4A)

    If the FCA has cancelled a firm's authorisation or registration under regulation 10 of the Payment Services Regulations or regulation 10 of the Electronic Money Regulations10 or its registration under regulation 10 as applied by regulation 14 of the Payment Services Regulations or its registration under regulation 10 as applied by regulation 15 of the Electronic Money Regulations, 10 then (1) and (2) do not apply but the firm must pay the total amount due immediately before the cancellation becomes effective.7

  8. (5)

    [deleted]27

    627
  9. (5A)

    (In relation to PRA-authorised persons only) paragraphs (1A) and (2) do not apply to any Solvency 2 Special Project fee or Solvency 2 Implementation fee (as defined in FEES 4 Annex 2B) and such fees are not taken into account for the purposes of the split in (1A). Instead any Solvency 2 Special Project fee or Solvency 2 Implementation fee is payable on the date specified in (1A)(b) or (2) (depending on which applies to the rest of its periodic fee) or any earlier date required by (3) or (4).14

  10. (6)

    5Paragraphs (1) and (2) do not apply to any periodic fee in relation to a firm'spermission for operating a multilateral trading facility and such a fee is not taken into account for the purposes of the split in (1). Instead any fee for this permission is

    payable on the date specified in FEES 4 Annex 10 (Periodic fees for MTF operators).

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

    26
  2. (2)

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

FEES 4.3.8 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 FCA26 under FEES 4.3.7 R, the FCA (in its own capacity and, if applicable, in its capacity as agent for the PRA)26 will apply the sum received among the firms which have been identified in the notification given under FEES 4.3.7R (1) in proportion to the amounts due from them. Each firm will remain responsible for the payment of the outstanding balance attributable to it.

26 26
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 FCA (in its own capacity and, if applicable, in its capacity as agent for the PRA)26 is informed that the sum being paid is for that firm's periodic fees.

26

Incoming EEA firms, incoming Treaty firms, EEA authorised payment institutions and EEA authorised electronic money institutions107

FEES 4.3.11 G RP

The appropriate regulator recognises that its responsibilities in respect of an incoming EEA firm,7 an incoming Treaty firm, an EEA authorised payment institution7 or an EEA authorised electronic money institution10 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,7incoming Treaty firms,10EEA authorised payment institutions7 and EEA authorised electronic money institutions10 are reduced.

7 10 7
FEES 4.3.12 R RP

For an incoming EEA firm, (excluding MTF operators), 5 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 27 Part 1 of FEES 4 Annex 2AR and, if applicable, Part 1 of FEES 4 Annex 2BR27 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 FEES 4 Annex 2AR and, if applicable, Part 3 of FEES 4 Annex 2BR2727.

FEES 4.3.12A R RP

10For:

10
  1. (-1)
    1. (a)

      a full credit institution which is a fee-paying payment service provider and an EEA firm; or

    2. (b)

      a full credit institution which is a fee-paying electronic money issuer and an EEA firm; or

    3. (c)

      an EEA authorised payment institution; or

    4. (d)

      an EEA authorised electronic money institution;

    the calculation required by FEES 4.3.3A R is modified as follows:

  2. (1)

    the tariffs set out in Part 5 of FEES 4 Annex 11 are only applied to the payment services or electronic money issuance10of the firm carried on from an establishment in the United Kingdom, including any payment services carried on10 through any of its agents established in the United Kingdom; and

    1010
  3. (2)

    those tariffs are modified in accordance with Part 7 of FEES 4 Annex 11.

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), or applies to vary (by reducing its scope) or cancel its authorisation or registration (regulation 8 and 10(1) of the Payment Services Regulations including as applied by regulation 14 of the Payment Services Regulations) or applies to cancel its authorisation or registration (regulation 10 and 12 of the Electronic Money Regulations including as applied by regulation 15 of the Electronic Money Regulations) ; 107an issuer makes an application for de-listing; or a sponsor notifies the 7FCA 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 fee year27 to which the fee relates;

      27

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

    27
  2. (2)

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

    127
FEES 4.3.14 G RP

Where a firm has applied to cancel its Part 4A permission, or its authorisation or registration under the Payment Services Regulations7or the Electronic Money Regulations, 10 or the appropriate regulator has exercised its own-initiative powers to cancel a firm's7Part 4A permission or the appropriate regulator has exercised its powers under regulation 10 (Cancellation of authorisation), including as applied by regulation 14 (Supplementary provisions) of the Payment Services Regulations to cancel a firm's authorisation or registration under the Payment Services Regulations or the appropriate regulator has exercised its powers under regulation 10 (Cancellation of authorisation), including as applied by regulation 15 (Supplementary provisions) of the Electronic Money Regulations, 10 , 7 the due dates for payment of periodic fees are modified by FEES 4.3.6R (3),7FEES 4.3.6R (4) and FEES 4.3.6R (4A)7 respectively.

7 7

Firms acquiring businesses from other firms

FEES 4.3.15 R
  1. (1)

    This rule applies if:3

    1. (a)

      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, unless no periodic fee was payable by A in the financial year that the business was acquired from B; or3

    2. (b)

      A became authorised or registered 7as a result of B's simple change of legal status (as defined in FEES 3 Annex 1 Part 6).3

  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 1AR, FEES 4 Annex 1BR2727 and FEES 4 Annex 11) 7 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.

FEES 4.3.16 R
  1. (1)

    [deleted]9

  2. (2)

    [deleted]9

  3. (3)

    [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 FCA (in its own capacity and, if applicable, in its capacity as collection agent for the PRA) the value (as at the valuation date specified in Part 5 of FEES 4 Annex 1AR in relation to fees payable to the FCA or Part 5 of FEES 4 Annex 1BR in relation to fees payable to the PRA)15 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 FCA (in its own capacity and, if applicable, in its capacity as collection agent for the PRA)15 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 5 of FEES 4 Annex 1AR in relation of fees payable to the FCA or Part 5 of FEES 4 Annex 1B R in relation to fees payable to the PRA15 (or FEES 4.2.7B R where applicable).2

15 15
FEES 4.4.3 R RP

To the extent that a firm has provided the information required by this section to the appropriate regulator14 as part of its compliance with another provision of the Handbook, it is deemed to have complied with the provisions of this section.

14
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 FCA (in its own capacity and, if applicable, in its capacity as collection agent for the PRA),14 does not obtain sufficient, or sufficiently detailed, information the FCA or the PRA, as appropriate,14 may seek this by using the general information gathering powers (see SUP 2 (Information gathering by the appropriate regulator14 on its own initiative)).

14 14 14 14
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, except those provided on a cross border services basis. 1

FEES 4.4.6 R RP

3The obligations of a firm to supply information as set out in FEES 4.4.1 R and FEES 4.4.2 R do not apply in respect of any of its payment services business.

Information relating to payment services and the issuance of electronic money4

FEES 4.4.7 D RP

3A fee-paying payment service provider and a fee-paying electronic money issuer4 must notify to the FCA the value (as at the valuation date specified in Part 4 of FEES 4 Annex 11) of each element of business on which the periodic fee (other than a flat fee)4 payable by the firm under 1 R4 is to be calculated, including any payment services carried on by its agents from an establishment in the United Kingdom.

4
FEES 4.4.8 D RP

3A firm4 must send to the FCA in writing the information required under FEES 4.4.7 D as soon as reasonably practicable, and in any event within two months, after the date specified as the valuation date in Part 4 of FEES 4 Annex 11.

FEES 4.4.9 D RP

3To the extent that a firm4 has provided the information required by FEES 4.4.7 D to the FCA as part of its compliance with another provision of the Handbook, it is deemed to have complied with the provisions of that direction.4

4 4

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

R

45Part 1

This table shows how the FCA links the regulated activities for which a firm has permission 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 operating a dormant account fundBUT DOES NOT include either of the following:

effecting contracts of insurance;

carrying out contracts of insurance.

A.2 Home finance providers and administrators

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

entering into a home finance transaction; or

administering a home finance transaction; 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 firms 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 and/or FEES 3.2.7A R(c) where it applies to vary its Part 4A permission such that it would normally be allocated to fee-block(s) other than A.13 if the variation was granted.

Portfolio managers

(1) its permission includes managing investments (a firm falling within this category is a class (1) firm);

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);

4 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).

OR

(4) its permission includes managing an AIF or managing a UCITS

Note:

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 permission includes NEITHER of the following:

safeguarding and administering investments (without arranging);

arranging safeguarding and administration of assets; and (c) the firmEITHER:

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.9 Managers and depositaries of investment funds, and operators of collective investment schemes or pension schemes 4

(1) its permission:

(a) includes one or more of the following:

managing an AIF;4

managing a UCITS;4

acting as trustee or depositary of an AIF;4

acting as trustee or depositary of a UCITS;4establishing, operating or winding up a collective investment scheme;5

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 of an authorised contractual scheme;3acting 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);

AND

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

OR

a corporate finance advisory firm;

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

a venture capital firm;

a firm which would be a venture capital firm but for the inclusion of managing an AIF on its permission; but only where the firm is managing an AIF exclusively in respect of AIFs which only invest in venture capital investments.4

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:

(a) dealing in investments as principal; and/or

(b) bidding in emissions auctions;

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 toestablishing, operating or winding up a collective investment scheme,5establishing, operating or winding up a personal pension scheme or a stakeholder pension scheme, or to carrying out depositary5 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 (except where the firm is bidding in emissions auctions);

its permission includes either:

- effecting contracts of insurance; or

- carrying out contracts of insurance.

5 5

A.12 Advisors, 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);

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 for whom all the applicable activities above5are limited to carrying out venture capital business;

a firm for whom all the applicable activities above are limited to acting as a residual CIS operator;5

a firm for whom all the applicable activities above are limited to acting as trustee or depositary of an AIF and/or acting as trustee or depositary of a UCITS;5

a service company.

5 5 5

A.13 Advisors, 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);

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;

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;(d)

AND

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 for whom all the applicable activities above5are limited to carrying out venture capital business;

a firm for whom all the applicable activities above are limited to acting as a residual CIS operator;5

a firm for whom all the applicable activities above are limited to acting as trustee or depositary of an AIF and/or acting as trustee or depositary of a UCITS;5 a service company.

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

5 5 5

A.14 Corporate finance advisers

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

A.18 Home finance providers, advisers and arrangers

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

entering into a home finance transaction; or

arranging (bringing about) a home finance transaction ; or

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

advising on a home finance transaction; 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.

B. MTF operators

its permission includes operating a multilateral trading facility.1

1 B. Benchmark administrators

It is a benchmark administrator

Part 2

This table sets out the activity groups (fee blocks) in relation to (i) the minimum feepayable to the FCA and (ii) the prudential fee payable to the FCA.

Activity group

Fee payer falls into the fee-block if

A.0 FCA minimum fee

(1) it is in at least one of the fee blocks under Part 1; and

(2) it is not:

(a) a UK ISPV; or

(b) a firm whose only permission is

operating a dormant fund account.

AP.0 FCA prudential fee

(1) it is an FCA authorised person2 ;and

(2) the periodic fee it pays to the FCA is not limited to the A.0 FCA minimum fee.2

2 2

Part 3

This table indicates the tariff base for each fee-block set out in Part 1.

The tariff base in this Part is the means by which the FCA measures the amount of business conducted by a firm for the purposes of calculating the annual periodic fees payable to the FCA by that firm.2

Activity group

Tariff base

A.1

MODIFIED ELIGIBLE LIABILITIES

For banks and building societies:

Item B of Form ELS (Note (1)):

(1 + 2 + 3 + 4 + 0.6*5 + 6 - 8 - 9A - 9B - 10A - 10B - 10C - 11A - 11B - 0.6*12) + (1/3)*(F1 + F2 + F3 + F4 + 0.6*F5 + F6 - F8 - F9A - F9B - F10A - F10B - F10C - F11A - F11B - 0.6*F12)

- 13M

Notes:

(1) All references in the above formula are to entries on Form ELS (that is, the Eligible Liabilities Return completed to provide information by banks and building societies to the Bank of England as required by the Bank of England Act 1998).

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

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.

Note:

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

A.2

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

The number of newmortgage contracts, home purchase plans, home reversion plans and regulated sale and rent back agreements entered into;

AND

The number of mortgage contracts, home purchase plans, home reversion plans and regulated sale and rent back agreements being administered, multiplied by 0.05 for mortgage outsourcing firms or other home finance outsourcing firms and by 0.5 for all other firms.

Notes:

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

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

(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 firstcharge counts as one contract, irrespective of the number of loans involved.

(3) Mortgages, home purchase plans, home reversion plans and regulated sale and rent back agreements 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;

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.

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) an EEA-deposit insurer;

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.

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

A.4

ADJUSTED GROSS PREMIUM INCOME AND MATHEMATICAL RESERVES (seeFEES 4 Annex 12 G)

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;

Less:

premiums relating to Trustee Investment Plans.

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

AND

the amount of mathematical reserves

(IPRU(INS) Appendix 9.1R - Form 14 , Line 11 ) 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 inSUP;

Less

mathematical reserves relating to pension fund management.

Less

mathematical reserves relating to Trustee Investment Plans.

Notes:

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

(2) 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.

(3) 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.

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) Except for funds under management where the fund is an AIF, for4 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.

(aa) for funds under management, where the fund is an AIF, assets means all assets or property of any description of the fund.4

(b) Assets managed by the firm on a discretionary basis exclude the firm's own assets. 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 also excluded as this activity is covered in those charged to fees in activity groups A.12 andA.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.

(f) If the firm is managing an overlay portfolio of derivative instruments and the underlying assets are managed by itself or a firm within the same group that has not reported them separately to the FCA, or by a firm outside its group, then it should calculate the value of the derivatives and other assets as prescribed in the guidance in FSA038 in SUP 16 Annex 25.

If the underlying assets are managed by another firm within the same group who has reported their value separately to the FCA, then to avoid double-counting within the group, the calculation must be restricted to the exposure of the overlay.

A.9

GROSS INCOME(1) For AIFMs (excluding internally managed AIFs), management companies,4 operators (including ACDs and authorised fund managers3 of unit trusts or authorised contractual schemes3 but excluding operators of a personal pension scheme or a stakeholder pension scheme) and residual CIS operators4 gross income from the activity relating to fee-block A.9 is defined as:

the amount of the annual charge on investments in the fund4 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.

(2)4Fordepositaries (includingtrusteesofcollective investment schemesandICVC or ACS3depositaries):

The amount of the annual charge levied on investments in funds4 for which they act as depositary (typically a % of the total funds for which they act as depositary).(3)4

For operators of a personal pension scheme or a stakeholder pension schemegross income from the activity relating to fee block A.9 is defined as:4

The 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.

(4) Internally managed AIFs must use a proxy for gross income for the activities relating to fee block A.9. This is the total value of funds under management (as defined in fee block A.7) multiplied by 0.01.4

3 4

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 FCA 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'sMTF operation.

A firm may, as an option, report employees or agents as full-time equivalents (FTE), taking account of any part-time staff. In calculating the FTE, firms must take into account the total hours employees or agents have contracted to work for the firm and not the time employees or agents devote to the dealing in investments as principal and bidding in emissions auctions functions set out in fee-block A.10. Any figures using the FTE calculation to be recorded to one decimal place, rounded down to the nearest decimal place.

A.12

ANNUAL INCOME

Annual income as defined in FEES 4 Annex 11A R

A.13

ANNUAL INCOME

Annual income as defined in FEES 4 Annex 11A R

A.14

ANNUAL INCOME

Annual income as defined in FEES 4 Annex 11A R.

A.18

ANNUAL INCOME

(a) the net amount retained by the firm of all brokerages, fees, commissions and other related income (e.g. administration charges, overriders, profit shares) due to the firm in respect of or in relation to home finance mediation activity (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 2007 or regulated sale and rent back mediation activity if they had been carried out on or after 1 July 2009);

PLUS

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

PLUS

(c) if the firm is a home finance provider, the value of all new mortgage advances and amounts provided under other home finance transactions which 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 or regulated sale and rent back mediation activity if they had been carried out on or after 1 July 2009 (other than those made as a result of home finance mediation activity by another firm), multiplied by 0.004.

For mortgage outsourcing firms or home finance outsourcing firms whose permission does not include advising on a home finance transaction the relevant amounts are multiplied by 0.15.

Notes on annual income:

(1) For the purposes of calculating annual income, "net amount retained" means all the commission, fees, etc. in respect of home finance 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 (e.g. employees' salaries, overheads) should not be deducted.

(2) 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.

(3) 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 2007 or regulated sale and rent back mediation activity if they had been carried out on or after 1 July 2009.

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

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

(6) 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.

(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.

(8) 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:

(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; and

(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.

(9) 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).

A.19

ANNUAL INCOME (A) the net amount retained by the firm of all brokerages, fees, commissions and other related income (e.g. 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) 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 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 (e.g. employees' salaries, overheads) should not be deducted.

(2) 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.

(3) Reference to a "firm " above also includes reference to any person, including a connected travel insurance intermediary, 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.

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

(5) 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.

(6) 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.

(7) 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:

(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; and

(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.

B. Market operators

Not applicable.

B. Service companies

Not applicable.

B. MTF operators

Not applicable.1

1 B. Benchmark administrators

Not applicable.

Part 4

This table indicates the tariff base for each fee block set out in Part 2.

The tariff base in this Part is the means by which the FCA measures the amount of business conducted by a firm for the purposes of calculating the annual periodic fees payable to the FCA by that firm.2

Activity Group

Tariff base

A.0

Not applicable because the minimum fee is a specified amount.

AP.0

The total periodic fees payable as a result of fee blocks A.2 and A.7 to A.19 in 2 Part 1 of FEES 4 Annex 2A R excluding any periodic fee for operating a dormant fund account.

Part 5

This table indicates the valuation date for each fee-block. A firm can calculate its tariff data in respect of fees payable to the FCA by applying the tariff bases set out in Part 3 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 2013/14 FEES (1 APRIL 2013 TO 31 MARCH 2014), A REFERENCE TO DECEMBER MEANS DECEMBER 2012.

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 credit unions:

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, home reversion plans and regulated sale and rent back agreements entered into in the twelve months ending 31 December.

AND

Number of mortgages, home purchase plans, home reversion plans and regulated sale and rent back agreements 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 2013/14 fees, the fee period will begin on 1 April 2013, which is in the 2013 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.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.12

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

A.13

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

A.14

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

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.

B. MTF operators

Not applicable.1

1 B. Benchmark administrators

Not applicable

FEES 4 Annex 1B PRA activity groups, tariff bases and valuation dates

R

www.prarulebook.co.uk

FEES 4 Annex 2A FCA Fee rates and EEA/Treaty firm modifications for the period from 1 April 2013 to 31 March 2014

R

41Part 1

This table shows the tariff rates applicable to each of the fee blocks set out in Part 1 of FEES 4 Annex 1AR.

(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.

(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 3 of FEES 4 Annex 1A R are disproportionate to the difference in fees payable; and

(b)

it notifies the FCA 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 4.2.2 G (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 fee of £250 is payable, unless the firm is a PRA-authorised person in which case an additional fee of £125 is payable instead; and

(c)

The minimum total fee (including the administrative fee in (b)) is £430, unless the firm is a PRA-authorised person in which case the total minimum total fee (including the administrative fee in (b)) is £215.

Activity group

Fee payable

A.1

Band width (£2million of Modified Eligible Liabilities (MELs))

Fee (£/£m or part £m2 of MELs)

2

General Periodic fee

>10 - 140

14.132

2

>140 - 630

14.132

2

>630 - 1,580

14.132

2

>1,580 - 13,400

17.662

2

>13,400

23.312

2

The tariff rates in A.1 are not relevant for the permissions relating to operating a dormant account fund. Instead a flat fee of 6,000 is payable in respect of these permissions

A.2

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

Fee (£2/mortgage)

>50

2

2.072

2

A.3

Gross premium income (GPI)

Periodic fee

Band Width (£2million of GPI)

Fee (£2/m or part m of GPI)

>0.5

2

322.002

2

PLUS

Gross technical liabilities (GTL)

General Periodic fee

Band Width (£2million of GTL)

Fee (£2/£2m or part £2m of GTL)

>1

2

16.972

2

For UKISPV'sUKISPVs the tariff rates are not relevant and a flat fee of 430 is payable in respect of each FCA financial year (the 12 months ending 31 March).

A.4

Adjusted annual gross premium income (AGPI)

General Periodic fee

Band Width (£2million of AGPI)

Fee (£2/£2m or part £2m of AGPI)

>1

2

473.002

2

PLUS

Mathematical reserves (MR)

General Periodic fee

Band Width (£2million of MR)

Fee (£2/£2m or part £2m of MR)

>1

2

10.642

2

A.5

Band Width (£2million of Active Capacity (AC))

Fee (£2/£2m or part £2m of AC)

>50

2

8.312

2

A.6

Flat fee (£)2

297,6422

2

A.7

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

Band Width (£2million of Funds under Management (FuM))

Fee (£2/£2m or part £2m of FuM)

>10

2

8.542

2

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%.2

A.9

Band Width (£2million of Gross Income (GI))

Fee (£2/£2m or part £2m of GI)

>1

2

1,309.002

2

A.10

Band Width (No. of traders)

Fee (£2/person)

>12

2

5,018.002

2

For firms carrying on auction regulation bidding, the fee in A.10 is calculated as above less 20% for each trader that carries on auction regulation bidding but not MiFID business bidding or dealing in investments as principal.

A.12

Band Width (£ thousands of annual income (AI))

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

>1002

2

2.392

2

A.13

Band Width (£ thousands of annual income (AI))

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

>1002

2

6.892

2

A.14

Band Width (£ thousands of annual income (AI))

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

>1002

2

2.852

2

A.18

Band Width (£2 thousands of Annual Income (AI))

Fee (£2/£2 thousand or part £2 thousand of AI)

>100

2

17.402

2

A.19

Band Width (£2 thousands of Annual Income (AI))

Fee (£2/£2 thousand or part £2 thousand of AI)

>100

2

1.762

2

B. Market operators

 2

£45,0002

B. Service companies

Bloomberg LP

£58,0002

LIFFE Services Ltd

£45,0002

OMGEO Ltd

£45,0002

Reuters Ltd

£45,0002

Swapswire Ltd

£45,0002

Plus Derivative Exchange Ltd

£45,0002

DTCC Derivatives Repository

£45,0002

Avelo Portal Limited

£45,0002

Calestone Ltd

£45,0002

Xtracter Ltd

£45,0002

Pirum Systems Limited

£45,0002

Fidessa

£45,0002

1 B. Benchmark administrators

£175,000

B. MTF operators

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

Part 2

This table shows the tariff rates applicable to each of the fee blocks set out in Part 2 of FEES 4 Annex 1AR.

(a)

It is a credit union that meets the conditions in (2), in which case the minimum fee payable is as set out in (2);

(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 (3)(a), in which case the minimum fee payable is £4302; or

2

(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 (3)(b), in which case the minimum fee payable is £4302; 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 (3)(a) and (3)(b), in which case the minimum fee payable is £4302.

2

(2)

The conditions referred to in (1)(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 £1602is payable; or

2

(b)

greater than 0.5millon but less than 20million, in which case a minimum fee of £5402is payable.

2

(3)

The conditions referred to in (1) 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.2

(4)

For PRA-authorised persons, the minimum fee is 50% of any fee stated in (1) or (2) above.2

AP.0

Periodic fees payable under fee blocks A.2 and A.7 to A.19in 2 Part 1 multiplied by rate £0.0782

2

Part 3

This table shows the modifications to fee tariffs that apply in respect of the FCA to incoming EEA firms and incoming Treaty firms which have established branches in the UK.

Activity Group

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

A.1

10%2

2

A.3

10%2

2

A.4

10%2

2

A.7

10%2

2

A.9

10%2

2

A.10

In relation to each trader that carries on auction regulation bidding but not MiFID business bidding or dealing in investments as principal, 100%.

In relation to all other traders, 10%2.

2

A.12

10%2

2

A.13

10%2

2

A.19

50%2

2

B. MTF operators

Not applicable

AP.0

100%

Note 1

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

Note 2

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

FEES 4 Annex 4 1 9 10Periodic fees in relation to collective investment schemes, AIFs marketed in the UK and small registered UK AIFMs payable for the period 1 April 2013 to 31 March 201413

R

1Part 1 - Periodic fees payable

Scheme type

Basic fee (£)

Total funds/sub-funds aggregate

Fund factor

Fee (£)

ICVC,

AUT,

ACS,11Section 264 of the Act,

(for fee year 2013/2014 only), schemes formerly recognised under section 270 of the Act, as in force immediately before 22 July 2013,12schemes other than non-EEA AIFs recognised under section 272 of the Act,12

12

680109

2 4 6 8 9

1-2

3-6

7-15

16-50

>50

1

2.5

5

11

22

680109

1,700109

3,400109

7,480109

14,960109

2 3 6 2 3 6 2 3 6 2 3 6 2 3 6 7 8 8 8 8 8 9 9 9 9 9 10 10 10 10 10

Non-EEA AIFs recognised under section 272 of the Act

,12

(from fee year 2014/2015), schemes formerly recognised under section 270 of the Act, as in force immediately before 22 July 2013 12

12

2,77010

2 4 7 8 9 10

1-2

3-6

7-15

16-50

>50

1

2.5

5

11

22

2,77010

6,92510

13,85010

30,47010

60,94010

2 3 6 2 3 2 3 6 2 3 6 2 3 6 7 8 8 8 8 8 9 9 9 9 9 10 10 10 10 10

Fees are charged according to the number of funds or sub-funds5operated by a firm as at 31 March 20129.83 Where a new collective investment scheme becomes authorised during a year, fees are charged according to the number of funds or sub-funds5operated by a firm as at the date of authorisation. Where more than one fund or sub-fund5is operated,5 the number of funds (not including the umbrella5or parent fund) produces a 'fund factor' in accordance with the table above,5 which is then applied to a basic fee to produce one total fee per operator5. Fund factors are applied per operator5rather than per scheme5so that the fees relate to the number of funds rather than the number of schemes5. This means that, for example, an authorised fund manager5 of three schemes5pays the same as an operator5or authorised fund manager5of one scheme5with three sub-funds5(as only the sub-funds5are counted).

Schemes 5 set up under section 264 of the Act are charged according to the number of funds or sub-funds5which 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 2010/117fees a reference to 31 March means 31 March 2010.7

Part 2 - Periodic fees for AIFs marketed in the UK, following a notification to the FCA under regulation 57, 58 or 59 of the AIFMD UK regulation13

5 2 3 5 8 9 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 3 7 3

13Kind of notification

Fee per AIF (£)

Notification under regulation 57 of the AIFMD UK regulation

500

Notification under regulation 58 of the AIFMD UK regulation

350

Notification under regulation 59 of the AIFMD UK regulation

500

Part 3 - Periodic fees paid by small registered UK AIFMs13

13The annual fee for small registered UK AIFMs is £750

FEES 4 Annex 5 1 5 11Periodic fees for designated professional bodies payable in relation to the period 1 April 2013 to 31 March 201415

R

1Table of fees10 payable by Designated Professional Bodies

15Name of Designated Professional Body

Amount payable

The Law Society of England & Wales

£81,930

The Law Society of Scotland

£14,450

The Law Society of Northern Ireland

£13,510

The Institute of Actuaries

£10,130

The Institute of Chartered Accountants in England and Wales

£26,180

The Institute of Chartered Accountants of Scotland

£11,380

The Institute of Chartered Accountants in Ireland

£10,730

The Association of Chartered Certified Accountants

£18,030

The Council for Licensed Conveyancers

£11,470

Royal Institution of Chartered Surveyors

£14,410

Notes

(1) The Financial Services Register includes details of exempt professional firms carrying out insurance mediation activity.

4 2

FEES 4 Annex 6 1 4 9 12Periodic fees for recognised investment exchanges, and recognised auction platforms payable in relation to the period 1 April 2013 to 31 March 201415

R

1In this Annex:

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

22

- the term recognition order includes a recognition order made by the FCA under section 37 of the Financial Services Act 1986 or a recognition order made by the Treasury under section 40 of the Financial Services Act 1986 in relation to overseas investment exchanges22.

22

Part 1 - Periodic fees for UK recognised investment exchanges12

12 22

15Name of UK recognised body

Amount payable

ICE Futures Europe Ltd

£690,000

LIFFE Administration and Management

£995,000

London Metal Exchange

£610,000

London Stock Exchange plc

£825,000

ICAP Securities & Exchange Limited (RIE)

£300,000

BATS Trading Limited

£300,000

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

£300,000

12Part 1A - Periodic fees for recognised auction platforms

15Name of recognised auction platform

Amount payable

An RAP recognised as such by a recognition order made in the fee year

£50,000

Part 2 - Periodic fees for overseas recognised investment exchanges 15

15

15The Chicago Mercantile Exchange (CME) (ROIE)

£56,000

Chicago Board of Trade

£56,000

EUREX (Zurich)

£56,000

National Association of Securities and Deals Automated Quotations (NASDAQ)

£56,000

New York Mercantile Exchange Inc.

£56,000

The Swiss Stock Exchange

£56,000

Sydney Futures Exchange Limited

£56,000

ICE Futures US Inc

£56,000

NYSE Liffe US

£56,000

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

£56,000

FEES 4 Annex 7 1 2 4Periodic fees in relation to the Listing Rules for the period 1 April 82013 to 31 March 2014138764

R

1Fee type

Fee amount

Annual fees for the period 1 April 2013 to March 2014987613

2 3 4 4 7 8

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, 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 fee year9in which the fee is payable,5 are 3as set out in Table 1A for issuers of global depositary receipts and Table 2 for other issuers.9 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 tranche of the firm's market capitalisation by the rate indicated for that tranche.

(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).

8 9 9 8 8

No fee is due under this annex in relation to regulated covered bonds. 1 R sets out the fees due in relation to regulated covered bonds.

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 1

The annual fee8 for issuers of securitised derivatives is 4,750.98

8 8 9

Table 1A9

Tiered annual fees for issuers of global depositary receipts9

9Fee payable

Minimum fee (£)

3,800

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

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

0 - 100

0

> 100 - 250

22.879515

> 250 - 1,000

9.15119

> 1,000 - 5,000

5.632939

> 5,000 - 25,000

0.137405

> 25,000

0.044392

Table 2

Tiered annual fees for all other issuers

Fee payable

Minimum fee (£)

£4,7509863

2 3 6 8 9

£ million of Market Capitalisation as at the last business day of the November prior to thefee year9 in which the fee is payable5

9

Fee (£/£m or part £m of Market Capitalisation as at the last business day of the November prior to thefee year9 in which the fee is payable)5

9

0 - 100

0

>100 - 250

28.5993949864

2 3 4 6 8 9

>250 - 1,000

11.4389999864

2 3 4 6 8 9

>1,000 - 5,000

7.0411739864

2 3 4 6 8 9

>5,000 - 25,000

0.1717569864

2 3 4 6 8 9

>25,000

0.0554909864

2 3 4 6 8 9

6

6 7 8 13

FEES 4 Annex 8 1 2 4 7 6 5 4 Periodic fees in relation to the Disclosure and Transparency Rules for the period 1 April 2013 to 31 March 201410

R

Annual fees for the period 1 April 2013 to 31 March 20148765

2 3 6 7 8

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

£3,8008753

2 3 7 8

Issuers of depositary receipts and global depositary receipts

£3,0408753

2 3 5 7 8

Table 2

Fee payable

Minimum fee (£)

3,8008753

2 3 5 7 8

£ million of Market Capitalisation as at the last business day of the November prior to the FCA financial year in which the fee is payable7

Fee (£/£m or part £m of Market Capitalisation) as at the last business day of the November prior to the FCA financial year in which the fee is payable)7

0 - 100

0

>100 - 250

22.8795158754

2 3 4 5 7 8

>250 - 1,000

9.1511998754

2 3 4 5 7 8

>1,000 - 5,000

5.6329398754

2 3 4 5 7 8

>5,000 - 25,000

0.1374058754

2 3 4 5 7 8

>25,000

0.0443928754

2 3 4 5 7 8

Table 3 - Primary information providers10

7 13

10Fee payable

£15,000

FEES 4 Annex 10 1Periodic fees for MTF operators payable in relation to the period 1 April 42013 to 31 March 201417432

R
33323

1Name of MTF operator (see Note below)5

Fee payable (£)

Due date32

1 August 2013 or, if later, 30 days from the date of the invoice5

2 3 4 5

Barclays Bank Plc

15,0005432

4 5

3Baltic Exchange Derivatives Trading Ltd4

4

20,00054

4 5

BATS Trading Ltd

150,000542

4 5

BGC Brokers L.P

50,0005432

2 4 5

EuroMTS Limited

50,000542

2 4 5

GFI Brokers Limited

15,0005432

2 3 4 5

GFI Securities Limited

50,0005432

2 3 4 5

ICAP Electronic Broking Limited

50,0005432

2 3 4 5

ICAP Energy Limited

15,0005432

2 3 4 5

ICAP Europe Limited

15,0005432

2 3 4 5

ICAP Shipping 2Tanker Derivatives Limited

2

15,0005432

3 4 5

ICAP Securities Limited

50,0005432

2 3 4 5

ICAP WCLK Limited

15,0005432

2 3 4 5

3J.P.Morgan Cazenove Limited

15,00054

4 5

Liquidnet Europe Limited

35,000542

4 5

My Treasury Limited

15,0005432

2 3 4 5

4iSWAP Euro Ltd

15,0005

5

3Nomura International Plc4

15,00054

4 5

4Credit Agricole Cherveux International

15,0005

5

3

4 		4

2SmartPool Trading Limited

20,000543

3 4 5

TFS-ICAP Limited

15,0005432

2 3 4 5

Tradeweb Europe Limited

50,0005432

2 3 4 5

Tradition (UK) Limited

15,0005432

2 3 4 5

Tradition Financial Services Limited

15,0005432

2 3 4 5

Tullett Prebon (Europe) Limited

15,0005432

2 3 4 5

Tullett Prebon (Securities) Limited

50,0005432

2 3 4 5

3Turquoise Global Holdings Ltd

85,00054

4 5

4Goldman Sachs International

15,0005

5

3UBS Ltd

15,00054

4 5

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 201254;2 and

(b) notifies the FCA of that fact by the end of March 2013542;

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: £15,0005432

2 4 5 2 4 5 2 3 4 5

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 August 2013543

2 3 4 5

Note: subject to FEES 4.3.13 R, this table applies to all MTdF operators with permission to operate an MTF as at 1 April of the applicable fee year; irrespective of whether, and if so when, their permission to operate an MTF was subsequently cancelled during that fee year.5

FEES 4 Annex 11 Periodic fees in respect of payment services carried on by fee-paying payment service providers under the Payment Services Regulations and electronic money issuance by fee-paying electronic money issuers under the Electronic Money Regulations and issuance of regulated covered bonds by issuers6 in relation to the period 1 April 62013 to 31 March 2014316432

R

2Part 1 - Method for calculating the fee for fee-paying payment service providers4

(1)

The periodic fee for fee-paying payment service providers is calculated by identifying the relevant activity group under Part 2 and then4adding 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 electronic money institutions4the tariff rates are not relevant and a flat fee is payable.

4

(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 FCA 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.

4Part 1A - Method for calculating the fee for fee-paying electronic money issuers

(1)

The periodic fee for fee-paying electronic money issuers is calculated by identifying the relevant activity group under Part 2A and then multiplying the tariff base identified in Part 3 of 1 R by the appropriate rates applying to each tranche of the tariff base as indicated in the table at Part 5. For small electronic money institutions, the tariff rates are not relevant and a flat fee is payable.

(2)

A fee-paying electronic money issuer 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 1 R is disproportionate to the difference in fees payable; and

(b)

it notifies the FCA 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 electronic money issuer which is required to comply with FEES 4.4 (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.

4Part 1B - Method for calculating the periodic fee where the firm is both a fee-paying payment service provider and a fee-paying electronic money issuer

Add the fee calculated under Part 1 to the fee calculated under Part 1A.

6Part 1C - Method for calculating the fee for an issuer of a regulated covered bond

The issuance of regulated covered bonds by issuers is linked to activity group G.15 in this annex. The periodic fees for issuers of regulated covered bonds is calculated by multiplying the tariff base relevant to G.15 in Part 3 of 1 R by the appropriate rates applying to each tranche of the tariff base as indicated in the table at Part 5.

Part 2 - Activity groups relevant to fee-paying payment service providers4

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

4

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 a fee-paying payment service provider that is 4an authorised payment institution,4 an EEA authorised payment institution, 4 the Post Office Limited or a fee-paying electronic money issuer (except if it is a small electronic money institution)4

4

G.4 Small payment institutions

it is a fee-paying payment service provider that is 4a small payment institution or a small electronic money institution4

4

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.

4Part 2A - Activity groups relevant to fee-paying electronic money issuers

This table shows how the electronic money issuance by fee-paying electronic money issuers is linked to activity groups ('fee-blocks'). A fee-paying electronic money issuer can use the table to identify which fee-blocks it falls into based on its authorisation, registration or permission, as applicable.

4Activity group

Fee payer falls into this activity group if:

G.10 Large electronic money institutions

it is a fee-paying electronic money issuer (except if it is a small electronic money institution)

G.11 Small electronic money institutions

it is a small electronic money institution

Part 3

This table indicates the tariff base for each fee-block. The tariff base is the means by which the FCA measures the amount of business conducted by fee-paying payment service providers,6fee-paying electronic money issuers and issuers of regulated covered bonds6.4

6

Activity Group

Tariff base

G.2

MODIFIED ELIGIBLE LIABILITIES

These are determined in the same manner as the tariff-base for relevant firms in the A.1 fee-block set out in FEES 4 Annex 1 Part 2 R.

G.3

RELEVANT INCOME

This is the sum of the following elements of the firm'sUK business:

Interest income

Interest expenses

Gross commissions and fees received

Gross other operating income

calculated in the same manner as the relevant indicator referred to in paragraph

18(3)

of Schedule 3 to the Payment Services Regulations.

For the Post Office Limited only, Relevant Income relates only to its payment services business.

G.4

Not applicable.

G.5

As in G.3 and Relevant Income only relates to payment services business.

4G.10

Average outstanding electronic money as defined under regulation 2(1) of the Electronic Money Regulations.

This is the average total amount of financial liabilities related to electronic money in issue at the end of each calendar day over the preceding twelve5 calendar months (which is the period ending on the date set out under Part 4), calculated on the first calendar day of each calendar month and applied for that calendar month (£million).5

5 6

4G.11

Not applicable.

6G.15

Regulated covered bonds issued in the 12 months ending on the valuation date and valued as at the valuation date.

Part 4 - Valuation period

This table indicates the valuation date for each fee-block. A fee-paying payment service provider,6 a fee-paying electronic money issuer and a regulated covered bondissuer64can calculate tariff data by applying the tariff bases set out in Part 34 with reference to the valuation dates shown in this table.

6 4 4

Activity group

Valuation date

In this table, reference to specific dates or months are references to the latest one occurring before the start of the period to which the fee applies e.g. for 2010/11 fees (1 April 2010 to 31 March 2011), a reference to December means December 2009.

Where the tariff data of a fee-paying payment service provider or a fee-paying electronic money issuer4 is in a currency other than sterling, it must be converted into sterling at the exchange rate prevailing on the relevant valuation date.

4

G.2

For banks and building societies as in FEES 4 Annex 1 Part 3.

4

G.3

Relevant income for the financial year ended in the calendar year ending 31 December.

G.4

Not relevant.

G.5

Relevant income for the twelve months ending 31 December.

4G.10

31 December.

4G.11

Not relevant.

6G.15

(1) The last day of the financial quarter during which the issuer became registered as an issuer in the FCA financial year (the 12 months ending 31 March).

(2) For subsequent FCA financial years, 31 December unless (3) applies.

(3) If the issuer became registered as an issuer between 1 January and 31 March inclusive, 31 March in respect of the FCA financial year immediately following the FCA financial year during which it became registered and 31 December in respect of all further FCA financial years.

A reference to a financial quarter in this box means any of the following periods: 1 April to 30 June inclusive, 1 July to 30 September inclusive, 1 October to 31 December inclusive or 1 January to 31 March inclusive.

Part 5 - Tariff rates

Activity group

Fee payable in relation to 2013/14764

4 6 7

G.2

Minimum fee (£)

400

£ million or part £m 3of Modified Eligible Liabilities (MELS)

Fee (£/£m or part £m of MELS)
3 3

3> 0.1

0.27200764

4 6 7

G.3

Minimum fee (£)

400

£ thousands or part thousand of Relevant Income

Fee (£/£thousand or part £thousand of Relevant Income)
3 3

3> 1004

4

0.18300764

4 6 7

G.4

Flat fee (£)7

£400

G.5

As in G.3.

4G.10

Minimum fee (£)

1,500

£74million or part m of average outstanding electronic money (AOEM)

Fee (£7/£7, or part m of AOEM)

4>5.0

200.0076

6 7

4G.11

Flat fee (£)7

£1,0006

6

6G.15

Minimum fee for the first registered programme (£)7

68,2717

7

Minimum fee for all subsequent registered programmes

75% of minimum fee for first registered programme

million or part m of regulated covered bonds issued in the 12 months ending on the valuation date.

Fee (/m or part m of regulated covered bonds issued in the 12 months ending on the valuation date)

>0.00

10.137

7

For the purposes of calculating fees, any regulated covered bonds denominated in a currency other than sterling must be converted into sterling at the applicable exchange rate set out below.

Where an exchange rate hedging agreement was entered into in connection with the issuance of regulated covered bonds denominated in a currency other than sterling, the applicable exchange rate for those regulated cover bonds is the exchange rate stipulated in the exchange rate hedging agreement.

An exchange rate hedging agreement is any agreement entered into to hedge the market risk relating to fluctuations in exchange rates.

In all other cases, the applicable exchange rate is the daily spot rate available on the Bank of England's Statistical Interactive Database (the Bank of England exchange rate) applying on the valuation date. If the valuation date is not a business day, then the applicable exchange rate is the Bank of England exchange rate applying on the first business day following the valuation date.

3 4

6 31 6 31

%43

3 4 6

%43

4 6

%43

3 4 6

%43

3 4 6

%

6

%

6
31

Part 7 - This table shows the modifications to fee tariffs that apply to 3EEA authorised payment institutions, EEA authorised electronic money institutions,4 and3full credit institutions that are EEA firms.3

4 3

Activity group

Percentage deducted from the tariff payable under Part 5 applicable to the firm

Minimum amount payable

G.2

40%3

 3

G.3

3

40%3

 3

4G.10

40%

FEES 4 Annex 11A Definition of annual income for the purposes of calculating fees in fee-blocks A.12, A.13 and A.14

R

1 Annual Income

"Annual income"is an amount equal to the net amount retained by the firm of all income due to the firm in respect of, or in relation to, the provision in the UK of the regulated activities specified in FEES 4 Annex 1A R Part 115 as belonging to fee-blocks A.12, A.13 and A.14.

For the purposes of calculating annual income, 'net amount retained' means:

(a) all brokerages, commissions, fees, and other related income (for example, administration charges, overriders, profit shares etc) due to the firm in respect of, or in relation to, the provision in the UK of the regulated activities specified in FEES 4 Annex 1A R Part 115 as belonging to fee-blocks A.12, A.13 or A.14and which the firm has not rebated to clients or passed on to other authorisedfirms15 (for example, where there is a commission chain).

Plus:

(b) any ongoing commission from previous business received by the firm during the reporting year.

Plus:

(c) the 'commission-equivalent' of any relevant business. In this instance, the 'commission equivalent' isan estimate of the amount the firm would otherwise have received for any regulated activity under (a) above, but for which it has made a business decision not to charge.

15 15 15

FEES 4 Annex 12 Guidance on the calculation of tariffs set out in FEES 4 Annex 1AR Part 3 and FEES 4 Annex 1BR Part 34

G

1The following tables set2 out guidance on how a firm should calculate relevant tariffs.

2Table 1: Fee block A.4

2

Adjusted Gross Premium Income and Mathematical reserves - calculation of new regular premium business

(1) In calculating the new regular premium business element of its Adjusted Gross Premium Income, a firm (A) should not include business transferred from another firm (B) under the procedure set out at Part VII of the Act, during the relevant financial year, provided that that transfer did not involve the creation of new contracts between the policyholders subject to the transfer and A. This is because that business is existing business even though it is new from the point of view of A. This means that if new contracts are created as part of the transfer, that business should be included in the calculation of As new regular premium income business.

(2) If any business is transferred to a firm (A) from another firm (B) under the procedure set out at Part VII of the Act and that business would have been included in B's tariff base as new regular premium business in the absence of such a transfer, this business should be included in either A's or B's tariff base, depending on the date of transfer. FEES 4.3.15R explains in whose tariff base it should be included.

(3) Mathematical reserves should take account of all of A's business, including all new business transferred from B.

2Table 2: Fee-blocks A.12, A.13 and A.14

Calculating and apportioning annual income - FEES 4 Annex 11A R

Calculating annual income

(1) Annual income should include all amounts due to the firm arising out of the regulated activities referred to in fee-blocks A.12, A.13 and A.14 for which the firm holds permission8, including regular charges and instalments due to the firm during the reporting year.

The firm should refer to the fee-block definitions in FEES 4 Annex 1A R88, Part 1 to decide which particular income streams should be taken into account when calculating its annual income for the purposes of fee-blocks A.12, A.13 and A.14.

(2) To avoid any doubt, the firm should exclude from the calculation of its annual income any regulated activities belonging to fee-blocks A.12, A.13 and A.14 where the performance of such regulated activities is entirely incidental to the carrying out by the firm of the regulated activity of managing investments belonging to fee-block A.7.

(3) To avoid double-counting, amounts which have been passed on to other firms may be excluded from the calculation of annual income. Transfers of income to other firms may be especially common within groups where, to present a single interface to clients, all amounts due to the group may be collected by one firm for subsequent redistribution to other firms within the group. It is for groups themselves to decide the most convenient way to report such annual income - i.e. whether the firm which receives the full amount should declare that full amount, or whether each firm in the group should report its separate distribution.

(4) The firm should include earnings from those who will become its appointed representatives immediately after authorisation.

(5) If any fee payable by the firm to another party for arranging a transaction with a client exceeds the amount payable by the end client, the firm may not take that excess into account in calculating the net amount retained but must instead net the sum payable by the end client to zero.

(6) The total should include administration charges and any interest from income related to the regulated activities.

(7) Items such as general business expenses (e.g. employees' salaries and overheads) should not be deducted, nor any penalties or fines that have been levied against the firm.

(8) Rebates to clients should be excluded and also fees or commission passed to other authorised firms.

(9) Authorised professional firms should exclude income from non-mainstream regulated activities. They may estimate the proportion of their business that is derived from those activities and split the income from individual invoices accordingly.

8

Apportioning income

Where a firm cannot separate its income on the basis of activities, it may apportion the income on the basis of the proportionate split of business that the firm otherwise undertakes. For instance:

(1) If a firm receives annual income from a platform-based business it may report this in line with a wider breakdown of its activities.

(2) A firm providing corporate finance advice which does not maintain records of the split between regulated activities and non-regulated activities for individual cases may calculate that regulated business accounts for a certain proportion of its business overall and apply that as a multiplier across its income.

(3) A firm may allocate ongoing commission from previous business on the basis of the type of firm it receives the commission from. This avoids tracking back legacy business which may no longer match the provider's current business model.

(4) An authorised professional firm may estimate the proportion of its business that is derived from regulated activity and split its income for individual invoices accordingly.

(5) If a firm has invested income from regulated activities, then any interest received should be reported as income, in proportion to the volume of regulated business it undertakes to avoid tracking back old payments.

(6) Firms' systems ought to be able to distinguish UK from non-UK business to establish which conduct of business regime it was conducted under. If, however, they do not relate the figures back to income streams for the specific regulated activities in a particular fee-block then the firm may make a proportionate split as described above, calculating its regulated UK income on the basis of the overall split between UK and overseas income.

(7) It is for individual firms to determine how they should calculate the appropriate split of income. The FCA8 is not prescriptive about the methodology. It requires only that:

(a) the approach should be proportionate - the FCA8 is looking for firms to make their best efforts to estimate the split;

(b) the firm must be able on request to provide a sound and clearly expressed rationale for its approach - for example, if all invoices were analysed over a particular period, the firm should be able to justify the period as representative of its business across the year;

(c) the methodology should be objective - for example, based on random sampling of invoices or random stratified sampling;

(d) the firm must on request be able to provide an audit trail which demonstrates that the choice of methodology was properly considered at an appropriate level or in the appropriate forums within the firm, and the decision periodically reviewed at the same level or in an equivalent forum.

8 8