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)

   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 the Electronic Money Regulations 4or 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 activities39.

   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 FCA financial year following the FCA 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 FCA financial year 3or the twelve months ending 31 December before the start of 3the FCA 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 FCA financial year; and

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      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 FCA 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 1AR Part 59 is modified in relation to the calculation of that firm’s9 valuation date in its second financial year.