FEES 4 Annex 2A 5771118FCA Fee rates and EEA/Treaty firm modifications for the period from 1 April 2019 to 31 March 202020FCA Fee rates and EEA/Treaty firm modifications for the period from 1 April 2019 to 31 March 202023

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's UK 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 4.4.2R8 (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; and11

(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.11

(c)

[deleted]11

Activity group

Fee payable

A.1

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

Fee (£/£m or part £m2 of MELs)

General Periodic fee

>10 - 140

14.8923

>140 - 630

14.8923

>630 - 1,580

14.8923

>1,580 - 13,400

18.61323

>13,400

24.56923

The tariff rates in A.1 are not relevant for the permissions relating to operating a dormant account fund. Instead a flat fee of £6,367 23 is payable in respect of these permissions.18

A.2

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

Fee (£2/mortgage)

>50

2.59423

A.3

Gross written premium for fees purposes (GWP)16

Periodic fee

Band Width (£2million of GWP16)

Fee (£2/m or part £m of GWP16)

>0.5

339.4323

PLUS

Best estimate liabilities for fees purposes (BEL)16

General Periodic fee

Band Width (£2million of BEL16)

Fee (£2/£2m or part £2m of BEL16)

>1

19.51823

For UK ISPVs the tariff rates are not relevant and a flat fee of 7 £49523 is payable in respect of each FCA financial year (the 12 months ending 31 March).

A.4

Gross written premium for fees purposes (GWP)16

General Periodic fee

Band Width (£2million of GWP16)

Fee (£2/£2m or part £2m of GWP16)

>1

194.8023

PLUS

Best estimate liabilities for fees purposes (BEL)16

General Periodic fee

Band Width (£2million of BEL16)

Fee (£2/£2m or part £2m of BEL16)

>1

13.95223

A.5

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

Fee (£2/£2m or part £2m of AC)

>50

7.5823

A.6

Flat fee (£)2

353,83423

A.7

For class 1(C), (2) , (3) and (4)6 firms:

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

Fee (£2/£2m or part £2m of FuM)

>10

5.4423

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

800.4923

A.10

Band Width (No. of traders)

Fee (£2/person)

>12

6,126.9423

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.13

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

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

>1002

2.55823

A.14

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

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

>1002

1.6223

A.18

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

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

>100

10.76423

A.19

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

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

>100

1.66823

3A.21

Client money

Band Width (£ client money) (CM) held

Fee (£/£ millions or part £ million of CM)

less than £1 million5

119.0023

an amount equal to or greater than £1 million but less than or equal to £1 billion

89.2523

more than £1 billion5

59.5023

PLUS

Safe custody assets

Band Width (£ safe custody assets) (CA) held

Fee (£/£ millions or part £ million of CA)

less than £10 million5

0.4523

an amount equal to or greater than £10 million and less than or equal to £100 billion

0.33823

more than £100 billion5

0.22523

13

13

5B. Service Companies

Band Width

Fee (£)18

Annual income up to and including £100,000

1,13223

PLUS:18

Band width18

Fee (£/£thousand or part £ thousand of income)18

Annual income over £100,00012

2.7623

12

12

12

1137

13

B. Regulated benchmark administrators17

Band width12

Fee (£)15

Annual income up to and including 100,00017

1,15123

15PLUS:

15Band width

Fee (£/£ thousand or part £18 thousand of income)

Annual income over 100,00017

1.5923

12B. Recognised investment exchanges

Band width

Fee (£)15

Annual income up to and including £10,000,000

105,06023

15PLUS:

15Band width

Fee (£/£ thousand or part £18 thousand of income)

Annual income over £10,000,000

4.1123

12B. Recognised auction platforms

55,143.0018

12B. Recognised overseas investment exchanges

60,000, except as provided below24

Recognised overseas investment exchanges that are EEA market operators before 26IP completion day

No fee is payable in respect of any complete fee year beginning on or after 1 April 2018 and ending before IP completion day26.

For the fee year in which 26IP completion day occurs the fee payable is in accordance with the formula set out below.24

(The above fee ÷ 12) multiplied by the number of calendar months (inclusive) between the calendar month in which 26IP completion day occurs and the last calendar month of that fee year.24

Recognised overseas investment exchanges (including those that were EEA market operators immediately before exit day for fee years following the fee year in which exit day occurs)21

60,00021

B. MTF and OTF14 operators

As set out in FEES 4 Annex 10R14 (Periodic fees for MTF and OTF14 operators).

4CC1. Credit-related regulated activities with limited permission

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

Fee (£)5

0 - 105

10623

>10 - 505

26623

>50 - 1005

42423

>1005

53023

5PLUS:

5Fee (£/£ thousand or part £ thousand of AI)

>2505

0.405

4CC2. Credit-related regulated activities

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

Fee (£)

0 - 505

31823

>50 - 1005

53023

>1005

1,06123

5PLUS:

5Fee (£/£ thousand or part £ thousand of AI)

>2505

1.3011

20CMC.

Band width (£ thousands of annual turnover)

Fee (£) for 2019/20

0-50

500

50-100

1,000

>100

13 per £ thousand or part per £ thousand

24Notes

1.

For the purposes of this table, 26“IP completion day” has the same meaning as in the European Union (Withdrawal Agreement) Act 2020 (see section 39(1) to (5) of that Act) 26and regulations made under that section.24

Part 2

The tables below show 9the tariff rates (minimum fees) applicable to each of the fee blocks set out in Part 2 of FEES 4 Annex 1AR.

9Part 2(a) shows the tariff rates (minimum fees) payable to the FCA by FCA-authorised persons and Part 2(b) shows the tariff rates (minimum fees) payable to the FCA by PRA-authorised persons.

[Note: PRA-authorised persons will also pay minimum fees to the PRA as set out in Chapter 3 of the Fees Part of the PRA Rulebook16.]

9Part 2(a) tariff rates (minimum fees) payable to the FCA by FCA-authorised persons

A.0

(1)

£1,15123 unless it is a community finance organisation with a tariff base of:11

11(a)

up to and including 3 mortgages and/or home finance transactions, in which case a minimum fee of £17623 13is payable; or

11(b)

more than 3 but no more than 10 mortgages and/or home finance transactions, in which case a minimum fee of £59723 is payable; or

11(c)

more than 10 but no more than 50 mortgages and/or home finance transactions, in which case a minimum fee of £1,10623 is payable.

(2)

[deleted]9

(3)

[deleted]9

[deleted]9

(4)

[deleted]9

AP.0

Periodic fees payable under fee blocks A.2, A.7 to A.19and A. 21 5in 2 Part 1 multiplied by rate 0.1091.23

9Part 2(b) tariff rates (minimum fees) payable to the FCA by PRA-authorised persons

A.0

(1)

£57423 unless:

(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 has, for that activity, 0.5 million or less in gross written premium for fees purposes and holds best estimate liabilities for fees purposes of 1.0 million or less16, in which case the minimum fee payable is £24723; 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 has, for that activity, written 1.0 million or less in gross written premium for fees purposes and holds best estimate liabilities for fees purposes of 1.0 million or less16, in which case the minimum fee payable is £24723; 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 £24723.

(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 £9223 is payable; or

(b)

greater than 0.5millon but less than 2.0million, in which case a minimum fee of £31023 is payable.

(3)

The conditions referred to in (1)(d)16 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 written premium for fees purposes and holds best estimate liabilities for fees purposes16 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 gross written premium for fees purposes and holds best estimate liabilities for fees purposes16 of 1.0 million or less.

The figures for gross written premium for fees purposes and best estimate liabilities for fees purposes16 are the same as used for Part 1 of this Annex.

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

A.3

10%2

A.4

10%2

A.7

10%2

A.9

10%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.

A.13

10%2

10A.18

10%

A.19

50%2

B. MTF and OTF14 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.