FEES 5.8 Joining the Financial Ombudsman Service

A firm which becomes subject to the Financial Ombudsman Service part way through a financial year must pay a rateable proportion of the general levy in accordance with the provisions of FEES 4.2.7ER to FEES 4.2.7KR9.

1. (1)

   When a firm obtains permission, or is authorised under the Payment Services Regulations or the Electronic Money Regulations or has its permission or payment services activities extended (‘permission event’), this rule governs the calculation of the firm’s general levy for10:

   1
   1. (a)

      the fee year in which the permission event takes place (‘year 1’); and10 and

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   2. (b)

      the following fee year (‘year 2’)10.

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2. (2)

   Notwithstanding paragraphs (3)-(6), if the tariff base is calculated using data from a point in time or period beginning on or after the date of the permission event to which that tariff base relates, the firm must use that data.10

   3
3. (3)

   The tariff base for year 1 is calculated using the projected valuation for the firm’s first year of the business to which the tariff base relates.109.

   3

   1. 10

4. (4)

   10There are 2 methods of calculating the tariff base for year 2. These are:

   1. (a)

      annualised actual data (‘method 1’); or

   2. (b)

      the projected valuation for the first year of business to which the tariff relates (‘method 2’).

5. (5)

   10The appropriate method for year 2 will depend on the date of the permission event. A firm must use method 1 if the permission event took place between 1 April and 31 December of year 1 inclusive, and method 2 in all other cases.

6. (6)

   10A firm using method 1 must:

   1. (a)

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

   2. (b)

      calculate the tariff by reference to the period beginning on the date of the permission event and ending on the 31 December before the start of year 2;

   3. (c)

      annualise the figures by increasing them by the same proportion as the period of 12 months bears to the period from the permission event to 31 December; and

   4. (d)

      notify the FCA of its use of method 1 by the date specified in FEES 5.4 (Information requirement).