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 as indicated in Table FEES 4.2.6 R, as if that table applied to the quarter in which a firm becomes subject to the Financial Ombudsman Service.

1. (1)

   1This rule deals with the calculation of:

   1. (a)

      a firm's general levy in the 12 months ending on the 31 March in which it obtains permission, or its permission is extended,3 and the following 12 months ending on the 31 March, and

   2. (b)

      the tariff base for the industry blocks that relate to that permission or extension, as the case may be.

2. (2)

   Unless this rule says otherwise, the tariff base is calculated using the projected valuation for its first and second year of the business to which the tariff relates.

3. (3)

   The rest of this rule only applies to a firm that becomes authorised, or extends its permission, on or after 1 April 2009.

   1. (a)

      If the tariff base is calculated using data from a period that begins on or after the date that the firm receives its permission or extension of permission, as the case may be, the firm must use that data.

   2. (b)

      If a firm satisfies the following conditions it must calculate its tariff base under (c) for the FSA financial year following the FSA financial year it obtained permission:

      1. (i)

         the firm receives its permission or extension of permission, as the case may be, between 1 April and 31 December inclusive; and

      2. (ii)

         the firm's tariff base, but for this rule, is calculated by reference to the firm's financial year ended in the calendar year ending 31 December or the twelve months ending 31 December prior to the FSA financial year.

   3. (c)

      If a firm satisfies the conditions in (b) it must calculate its tariff base as follows:

      1. (i)

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

      2. (ii)

         the tariff is calculated by reference to the period beginning on the date it acquired permission, or had its permission extended, and ending on the 31 December before the start of the FSA financial year; and

      3. (iii)

         the figures are annualised by increasing them by the same proportion as the period of 12 months bears to the period starting from when the firm received its permission or extension to the31 December, as the case may be.

   4. (d)

      Where a firm is required to use the method in (c) it must notify the FSA of its intention to do so by the date specified in FEES 5.4 (Information requirement).

   5. (e)

      Where a firm is required to use actual data under this rule FEES 4 Annex 1R Part 3 is modified in relation to the calculation of that firms valuation date in its second financial year.