Content Options

View Options

Status: You are viewing the version of the handbook as on 2011-04-29.

FEES 4 Annex 2 1399Fee tariff rates, permitted deductions and EEA/Treaty firm modifications for the period from 1 April 2010 to 31 March 20111413

Part 1

This table shows the tariff rates applicable to each fee block

13(1)

For each activity group specified in the table below, the fee is the total of the sums payable for each of the tariff bands applicable to the firm's business, calculated by multiplying the value of the firm's tariff base by the rate applicable to each tranche of the tariff base, as indicated (Note 1).

(2)

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

(a)

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

(b)

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

(3)

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

(a)

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

(b)

an additional administrative fee of 250 is payable; and

(c)

the minimum total fee (including the administrative fee in (b)) is 430.

Note 1

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

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

Activity group

Fee payable

A.1

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

Fee (£/£m or part £m of MELs)

Column 1

General Periodic fee

Column 2

Reclaim Fund Set-Up fee

>10 - 140

29.90

0.12

>140 - 630

29.90

0.12

>630 - 1,580

29.90

0.12

>1,580 - 13,400

37.38

0.12

>13,400

49.34

0.12

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

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

A.2

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

Fee (£/mortgage)

>50 - 130

1.26

>130 - 320

1.26

>320 - 4,570

1.26

>4,570 - 37,500

1.26

>37,500

1.26

A.3

Gross premium income (GPI)

Column 1

General periodic fee

Column 2

Solvency 2 Implementation fee

Column 3

Solvency 2 Special Project fee

Minimum fee (£)

Not applicable

50.00

25.00

Band Width (£ million of GPI)

Fee (£/£m or part £m of GPI)

>0.5 - 10.5

531.58

110.45

93.40

>10.5 - 30

531.58

110.45

93.40

>30 - 245

531.58

110.45

93.40

>245 - 1,900

531.58

110.45

93.40

>1,900

531.58

110.45

93.40

PLUS

Gross technical liabilities (GTL)

Column 1 General Periodic fee

Column 2 Solvency 2 Implementation fee

Column 3

Solvency 2 Special Project fee

Band Width (£ million of GTL)

Fee (£/£m or part £m of GTL)

>1 - 12.5

28.39

5.65

5.55

>12.5 - 70

28.39

5.65

5.55

>70 - 384

28.39

5.65

5.55

>384 - 3,750

28.39

5.65

5.55

>3,750

28.39

5.65

5.55

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

A.4

Adjusted annual gross premium income (AGPI)

Column 1

General Periodic fee

Column 2

Solvency 2 Implementation fee

Column 3

Solvency 2 Special Project fee

Minimum fee (£)

Not applicable

25.00

25.00

Band Width (£ million of AGPI)

Fee (£/£m or part £m of AGPI)

>1 - 5

706.46

137.00

114.60

>5 - 40

706.46

137.00

114.60

>40 - 260

706.46

137.00

114.60

>260 - 4,000

706.46

137.00

114.60

>4,000

706.46

137.00

114.60

PLUS

Mathematical reserves (MR)

Column 1

General Periodic fee

Column 2

Solvency 2 Implementation fee

Column 3(

Solvency 2 Special Project fee

Minimum fee (£)

Not applicable

25.00

25.00

Band Width (£ million of MR)

Fee (£/£m or part £m of MR)

>1 - 20

15.32

3.00

2.95

>20 - 270

15.32

3.00

2.95

>270 - 7,000

15.32

3.00

2.95

>7,000 - 45,000

15.32

3.00

2.95

>45,000

15.32

3.00

2.95

A.5

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

Fee (£/£m or part £m of AC)

>50 - 150

54.55

>150 - 250

54.55

>250 - 500

54.55

>500 - 1,000

54.55

>1,000

54.55

A.6

Flat fee

1,500,514

PLUS

Solvency 2 Special Project Flat fee (£)

249,603.72

PLUS

Solvency 2 Implementation Flat fee (£)

300,100.80

A.7

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

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

Fee (£/£m or part £m of FuM)

>10 - 150

8.52

>150 - 2,800

8.52

>2,800 - 17,500

8.52

>17,500 - 100,000

8.52

>100,000

8.52

For class 1(B) firms: the fee calculated as for class 1(C) firms above, less 15%. For class 1(A) firms: the fee calculated as for class 1(C) firms above, less 50%.

A.8

This activity group does not apply for this period.

A.9

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

Fee (£/£m or part £m of GI)

>1 - 4.5

1,052.62

>4.5 - 17

1,052.62

>17 - 145

1,052.62

> 145 - 750

1,052.62

>750

1,052.62

A.10

Band Width (No. of traders)

Fee (£/trader)

2 - 3

3,196.91

4 - 5

3,196.91

6 - 30

3,196.91

31 - 180

3,196.91

>180

3,196.91

A.11

This activity group does not apply for this period.

A.12

Band Width (No. of persons)

Fee (£/person)

2 - 5

426.35

6 - 35

426.35

36 - 175

426.35

176 - 1,600

426.35

>1,600

426.35

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

A.13

For class (2) firms:

Band Width (No. of persons)

Fee (£/person)

2 - 3

1,290.54

4 - 30

1,290.54

31 - 300

1,290.54

301 - 2,000

1,290.54

>2,000

1,290.54

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

A.14

Band Width (No. of persons)

Fee (£/person)

2 - 4

1,340.87

5 - 25

1,340.87

26 - 80

1,340.87

81 - 199

1,340.87

>199

1,340.87

A.15

This activity group does not apply for this period.

A.16

This activity group does not apply for this period.

A.17

This activity group does not apply for this period.

A.18

Band Width ( thousands of Annual Income (AI))

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

>100 - 180

10.54

>180 - 1,000

10.54

>1,000 - 12,500

10.54

>12,500 - 50,000

10.54

>50,000

10.54

A.19

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

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

>100 - 325

2.43

>325 - 10,000

2.43

>10,000 - 50,750

2.43

>50,750 - 250,000

2.43

>250,000

2.43

B. Market operators

£35,000

B. Service companies

Bloomberg LP

£45,000

EMX Co Ltd

£35,000

LIFFE Services Ltd

£35,000

[row deleted]

OMGEO Ltd

£35,000

Reuters Ltd

£45,000

Swapswire Ltd

£35,000

B. MTF operators

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

Part 1 A

13(1)

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

(2)

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

(a)

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

(b)

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

(c)

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

(d)

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

(3)

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

(4)

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

(a)

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

(b)

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

(5)

The conditions referred to in (2) are that:

(a)

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

(b)

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

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

Note 1

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

Part 2

This table shows the permitted deductions that apply where financial penalties are received under the Act:13

4Activity group

13

Amount of deduction

13Part 1A (minimum fee)

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

A.1

13

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

61013

A.2

13

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

61013

A.3

13

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

61013

A.4

13

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

61013

A.5

13

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

61013

A.6

13

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

61013

A.7

13

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

61013

A.9

13

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

61013

A.10

13

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

61013

A.12

13

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

61013

A.13

13

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

61013

A.14

13

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

61013

A.18

13

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

61013

A.19

13

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

61013
9

Part 33

This table shows the modifications to fee tariffs that apply to incoming EEA firms and incoming Treaty firmswhich have established branches in the UK5.

Activity group

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

13

A.1

50%13

135
135

A.3

9013%

13
13

A.4

25%

13

A.7

5%

13

A.9

5%

13

A.10

10%

13

A.12

10%

13

A.13

10%

13

A.19

10%

13

B. MTF operators9

Not applicable

13

Note 113

The modifications to fee tariffs payable by an incoming EEA firm or an incoming Treaty firm which has established a branch in the UK 5apply only in relation to the relevant regulated activities of the firm which are passported activities or Treaty activities and which are carried on in the UK.

13Note 2

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

7Part 4

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

(1)

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

(2)

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

(a)

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

10

(b)

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

1310

(c)

[deleted]13

101013

10(d)

[deleted]13

13

(3)

[deleted]13

1010101013

(4)

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

1313

(5)

[deleted]13

1013

(6)

[deleted]138

81013

(7)

[deleted]13

1310

(8)

[deleted]13

1013

(9)

[deleted]13

13

(10)

[deleted]13

13

(11)

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

13

10Part 5

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

(1)

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

(2)

The conditions in this paragraph are:

(a)

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

(b)

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

1313

(c)

it meets either of the following conditions:13

13

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

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

(d)

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

13(e)

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

(3)

The conditions in this paragraph are:

(a)

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

(b)

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

(4)

Where a firm has notified the FSA that it intends to migrate out of the United Kingdom for regulatory purposes before the Solvency 2 Directive 13is implemented in the United Kingdom but when the Solvency 2 Directive 13is implemented that firm remains in the United Kingdom for regulatory purposes, it must pay the Solvency 2 Implementation fee for each financial year commencing 1 April 2009 for which the Solvency 2 Implementation fee would have applied to the firm but for the firm notifying the FSA of its intention to migrate.

1313

(5)

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

(6)

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

13(7)

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