FEES 5.4 Information requirement
- (1)
A firm must provide the FCA by the end of February each year (or, if the firm has become subject to the Financial Ombudsman Service part way through the financial year, by the date requested by the FCA) with a statement of:
- (a)
the total amount of relevant business (measured in accordance with the appropriate tariff base(s)) which it conducted; or8
- (b)
in the case of firms in industry blocks 2 and 4, the gross written premium for fees purposes as defined in FEES 4 Annex 1AR (unless FEES 5.4.1R(1A) applies),8
as at or in the year to 31 December of the previous year as appropriate, including only business undertaken from a branch or establishment in the UK11 in relation to the tariff base for each of the relevant industry blocks set out in FEES 5 Annex 1. Firms that do not carry out their business from a branch or establishment in the UK will pay the minimum levy for each tariff base.11
51678 - (a)
- (1A)
A firm in industry blocks 2 and 4, has notified the FCA of the amount of gross written premium for fees purposes, as defined in FEES 4 Annex 1AR, that relates to relevant business. The notification must be made by the 30 May each year.
- (2)
Paragraph (1) does not apply if the firm pays a general levy on a flat fee basis only or if it is the Bank of England.4
- (3)
If a firm cannot provide a statement of the total amount of relevant business as required by FEES 5.4.1 R, it must provide the best estimate of the amount of relevant business that it conducted.
- (4)
For the purpose of FEES 5.4.1R, references to relevant business for a firm which falls in industry block 16 or 17 and which so elects under FEES 5 Annex 1, are references to the firm's total amount of annual income reported in accordance with Part 3 of FEES 4 Annex 1A.15
51615 - (5)
If a firm does not submit a complete statement by the date on which it is due in accordance with this rule and any prescribed submission procedures:
- (a)
the firm must pay an administrative fee of 250 (but not if it is already subject to an administrative fee under 15FEES 4 Annex 2A, Part 115, Part 1 or FEES 6.5.16 R for the same financial year); and
- (b)
the general levy will be calculated using (where relevant) the valuation or valuations of business applicable to the previous period, multiplied by the factor of 1.10 (or, if a firm has become subject to the Financial Ombudsman Service part way through the financial year, on the basis of the information provided to the 3FCA for the purposes of FEES 4.4.2 R) or on any other reasonable basis, making such adjustments as seem appropriate in subsequent levies once the true figures are known.
3
- (a)
- (1)
8In the case of firms in industry blocks 2 and 4 the requirements under FEES 5.4.1R apply in relation to the tariff bases(s) and tariff data in FEES 5 Annex 1R.
- (2)
If a firm is a UK Solvency II firm10 in industry blocks 2 and 4 in FEES 5 Annex 1R, the FCA may use tariff data from the previous reporting period for the periodic fees calculation if the PRA or the FCA has either:
- (a)
not received the necessary tariff data in a timely basis in line with Part 3 and 5 of FEES 4 Annex 1AR; or
- (b)
deemed the tariff data received to be incomplete or insufficiently reliable, by reference to a specific firm or across all or part of the industry block.
- (a)
6The information requirement set out under FEES 5.4.1 R is applied under this direction to a fee-paying payment service provider and a fee-paying electronic money issuer.
9For firms in industry blocks 2 and 4, if the data source specified in the applicable tariff base in Part 3 of FEES 4 Annex 1AR is not available to the PRA or FCA for any reason and the same data is available to the PRA or FCA from an alternative source, the FCA may use that alternative source to calculate the tariff rates under FEES 5 Annex 1R.
Failure to submit a statement in accordance with the rules in this chapter may also lead to the imposition of a financial penalty and other disciplinary sanctions (see DEPP 6.6.1 G to DEPP 6.6.5 G1).
1SUP 16.3 (General provisions on reporting) contains further rules on the method of submission of reports under FEES 5.4.1 R.
A firm should not provide a statement of relevant business if it deals only with eligible complainants who are not consumers4. Relevant business is defined in the Glossary as business done with consumers4 only. So FEES 5.4.1 R does not apply in relation to business done with other types of eligible complainant described in DISP 2.7.3R (2), DISP 2.7.6R (12)(a) and DISP 2.7.6R (12)(a);2 the funding of FOS Ltd in relation to that business is by special case fee only (see FEES 5.5.6 R).
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