FEES 4 Annex 2 1Fee tariff rates, permitted deductions and EEA/Treaty firm modifications for the period from 1 April 2006 to 31 March 20071

1Part 1

This table shows the tariff rates applicable to each fee block

(1)

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

(a)

the relevant minimum fee; plus

(b)

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

(2)

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

(a)

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

(b)

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

(3)

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

(a)

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

(b)

an additional administrative fee of 250 is payable; and

(c)

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

Activity group

Fee payable

A.1

Minimum fee ()

150

million of Modified Eligible Liabilities (MELs)

Fee (/m or part m of MELS)

0 - 0.5

0

>0.5 - 2

additional flat fee of 360

>2 -10

additional flat fee of 510

>10 - 200

30.96

>200 - 2,000

30.93

>2,000 - 10,000

30.88

>10,000 - 20,000

30.76

>20,000

30.52

For a firm in A.1 which has a limitation on its permission to the effect that it may accept deposits from wholesale depositors only, the fee is calculated as above less 30%. In addition, the fee specified below is payable by UK banks and building societies. The wholesale depositors discount and permitted deductions in Part 2 of FEES 4 Annex 2 do not apply to this fee.

Minimum fee (m of MELs)

Fee ()

if 0 - 2,000

0

if >2,000

2,000

million of MELs

Fee (/m or part m of MELs)

0 - 5,000

0

>5,000 - 10,000

0.69

>10,000 - 20,000

0.63

>20,000

0.59

A.2

Minimum fee ()

450

No. of mortgages

Fee (/mortgage)

0 - 50

0

51 - 500

4.36

501 - 1,000

1.75

1,001 - 50,000

1.32

50,001 - 500,000

0.44

>500,000

0.09

A.3

Gross premium income (GPI)

Minimum fee ()

410

million of GPI

Fee (/m or part m of GPI)

0 - 0.5

0

>0.5 - 2

1,778.54

>2 - 5

1,652.58

>5 - 20

1,550.19

>20 - 75

493.49

>75 - 150

432.61

>150

60.98

PLUS

Gross technical liabilities (GTL)

Minimum fee ()

0

million of GTL

Fee (/m or part m of GTL)

0 - 1

0

>1 - 5

43.55

>5 - 50

40.36

>50 - 100

37.46

>100 - 1,000

11.80

>1,000

4.73

A.4

Adjusted annual gross premium income (AGPI)

Minimum fee ()

205

million of AGPI

Fee (/m or part m of AGPI)

0 - 1

0

>1 - 50

756.42

>50 - 1,000

705.19

>1,000 - 2,000

484.07

>2,000

332.35

PLUS

Mathematical reserves (MR)

Minimum fee ()

205

million of MR

Fee (/m or part m of MR)

0 - 1

0

>1 - 10

37.70

>10 - 100

34.51

>100 -1,000

23.37

>1,000 - 5,000

16.43

>5,000 - 15,000

12.78

>15,000

9.93

A.5

Minimum fee ()

550

million of Active Capacity (AC)

Fee (/m or part m of AC)

0 - 50

0

>50 - 150

99.36

>150 - 250

83.62

>250

24.53

A.6

1,068,000

A.7

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

Minimum fee ()

1,150

million of Funds under Management (FuM)

Fee (/m or part m of FuM)

0 - 10

0

>10 - 100

52.68

>100 - 2,500

16.94

>2,500 - 10,000

9.43

>10,000

1.06

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

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

A.8

This activity group does not apply for this period.

A.9

Minimum fee ()

1,800

million of Gross Income (GI)

Fee (/m or part m of GI)

0 - 1

0

>1 - 5

1,074.59

>5 - 15

1,056.41

>15 - 40

1,045.94

>40

1,031.68

A.10

Minimum fee ()

2,200

No. of traders

Fee (/trader)

0 - 2

0

3 - 5

2,069

6 - 10

1,495

11 - 50

1,382

51 - 200

1,196

>200

965

In addition, the fee specified below is payable by UK domestic firms. The permitted deductions in Part 2 of FEES 4 Annex 2 do not apply to this fee.

Minimum fee (No. of traders)

Fee ()

if 0 - 100

0

if >100

1,000

No. of traders

Fee (/trader)

0 -125

0

126 - 250

72.71

>250

52.84

A.11

This activity group does not apply for this period.

A.12

Minimum fee ()

1,715

No. of persons

Fee (/person)

0 - 1

0

2 - 4

1,018

5 - 10

515

11 - 25

377

26 - 150

205

151 - 1,500

156

>1,500

104

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

A.13

For class (2) firms:

Minimum fee ()

1,605

No. of persons

Fee (/person)

0 - 1

0

2 - 4

878

5 - 10

856

11 - 25

821

26 - 500

757

501 - 4,000

696

>4000

657

For class (1) firms: 1,605

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

A.14

Minimum fee ()

1,220

No. of persons

Fee (/person)

0 - 1

0

2

1,101

3 - 4

1,030

5 - 10

947

11 - 100

899

101 - 200

629

>200

378

A.15

This activity group does not apply for this period.

A.16

0

A.17

This activity group does not apply for this period.

A.18

Minimum fee ()

635

thousands of Annual Income (AI)

Fee (/ thousand or part thousand of AI)

0 - 100

0

>100 - 1,000

5.38

>1,000 - 5,000

4.48

>5,000 - 10,000

3.59

>10,000 - 20,000

2.69

>20,000

2.25

A.19

Minimum fee ()

400

thousands of Annual Income (AI)

Fee (/ thousand or part thousand of AI)

0 - 100

0

>100 - 1,000

3.80

>1,000 - 5,000

3.32

>5,000 - 15,000

2.40

>15,000 - 100,000

0.96

>100,000

0.39

B. Market operators

20,000

B. Service companies

Bloomberg LP

31,500

EMX Co Ltd

21,000

LIFFE Services Ltd

21,000

Ofex plc

70,000

OMGEO Ltd

21,000

Reuters Ltd

31,500

Swapswire Ltd

21,000

Thomson Financial Ltd

21,000

Part 2

This table shows the permitted deductions that apply:

Activity group

Nature of deduction

Amount of deduction

A.3

Financial penalties received

1.2% of the fee payable by the firm for the activity group (see Part 1)

A.4

Financial penalties received

3.1% of the fee payable by the firm for the activity group (see Part 1)

A.5

Financial penalties received

1.2% of the fee payable by the firm for the activity group (see Part 1)

A.6

Financial penalties received

1.2% of the fee payable by the firm for the activity group (see Part 1)

A.10

Financial penalties received

100% of the fee payable by the firm for the activity group (see Part 1)

A.12

Financial penalties received

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

A.13

Financial penalties received

0.9% of the fee payable by the firm for the activity group (see Part 1)

A.14

Financial penalties received

1.8% of the fee payable by the firm for the activity group (see Part 1)

E.

Financial penalties received

3% of the fee payable by the firm for the activity group (see Part 1)

Part 3

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

Activity group

Percentage of tariff payable under Part 1 applicable to the firm subject to a minimum amount payable of 100 (unless specified below)

A.1

20% (for a firm operating on cross-border services basis only, 0% and the minimum sum is not applicable)

A.3

0% and the minimum sum is not applicable

A.4

75%

A.7 and A.9

95%

A.10, A.12, A.13 and A.19

90%