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

FEES 5.8 Joining the Financial Ombudsman Service

FEES 5.8.1RRP

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.

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FEES 5.8.2RRP
  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 was authorised under the Payment Services Regulations or had its permission and/or payment services activities extended (relevant permissions)3 and the following 12 months ending on the 31 March;3 and

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    2. (b)

      the tariff base for the industry blocks that relate to each of the relevant permissions3.

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  2. (2)

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

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  3. (3)

    The rest of this rule only applies to a firm that becomes authorised, or extends its permission and/or payment services activities3, 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 obtains the relevant permission to which that tariff base relates3, the firm must use that data.

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    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 a relevant permission3:

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      1. (i)

        the firm receives a relevant permission3 between 1 April and 31 December inclusive; and

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      2. (ii)

        the firm's tariff base for that relevant permission is3, but for this rule, calculated by reference to the firm's financial year ended in the calendar year ending on the 331 December before the start of the FSA financial year 3or the twelve months ending 31 December before the start of 3the FSA financial year.

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    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 the relevant permission relating to the tariff3 and ending on the 31 December before the start of the FSA financial year; and

        3
      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 any relevant permissions3 to 31 December.

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    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.

Application of FEES 5.8.2R

FEES 5.8.3GRP

1The table below sets out the period within which a firm's tariff base is calculated (the data period) for second year levies calculated under FEES 5.8.2R. The example is based on a firm that acquires permission on 1 November 2009and has a financial year ending 31 March. Where valuation dates fall before the firm receives permission it should use projected valuations in calculating its levies.

References in this table to dates or months are references to the latest one occurring before the start of the FSA's financial year unless otherwise stated.

Type of permission acquired on 1 November

Tariff base

Valuation date but for FEES 5.8.2R

Data period under FEES 5.8.2R

Insurers - general

Relevant annual gross premium income

31 March 2009- so projected valuations will be used

1 November to 31 December 2009.

Fund managers (including those holding client money/assets and not holding client money/assets

Relevant funds under management

Valued at 31 December

Valued at 31 December

Advisory arrangers, dealers or brokers holding and controlling client money and/or assets

Number of relevant persons approved to perform the customer function with certain exclusions

Relevant approved persons as at 31 December

Relevant approved persons as at 31 December