1 16 Rules and guidance made by the FSA in this chapter apply to every firm which is subject to the Compulsory Jurisdiction.718

5A reference to firm in this chapter includes a reference to a fee-paying payment service providerand fee-paying electronic money issuer6 .

7 18 FEES 5.1.1A R does not apply to FEES 5.5A or FEES 5 Annex 2R or Annex 3R unless otherwise stated in rules made by the FOS Ltd.

A firm which is exempt under DISP 1.1.12 R3 is also exempt from FEES 5.1, 5.2, 5.3, 5.4 and 5.671827182.

2A firm will only be exempt from FEES 5.7 for any given financial year if it met the conditions inDISP 1.1.12 R3 on 31 March of the immediately preceding financial year.

A firm which ceases to be exempt under FEES 5.1.4 R is to be treated, for the purposes of its contribution to the general levy, as a firm to which FEES 5.8 applies.

A firm must pay to the FSA a general levy towards the costs of operating the Compulsory Jurisdiction of the Financial Ombudsman Service.

A firm'sgeneral levy under the compulsory jurisdiction19 is calculated as follows:

1. (1)

   identify each of the tariff bases set out in FEES 5 Annex 1 which apply to the relevant business of the firm for the relevant year;

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2. (2)

   for each of those tariff bases, calculate the sum payable in relation to the relevant business of the firm for that year;

3. (3)

   add together the amounts calculated under (2).

For the purpose of FEES 5.3.6 R and FEES 5.3.8 R, a member of the Society of Lloyd's or a managing agent at Lloyd's will not in that capacity be treated as a firm. But the Society of Lloyd's will pay a general levy in respect of Lloyd's insurance business conducted with eligible complainants.

For the purpose of FEES 5.3, 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 2 of FEES 4.

1. (1)

   A firm must provide the FSA 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 FSA) with a statement

   of the total amount of relevant business (measured in accordance with the appropriate tariff base(s)) which it conducted, as at or in the year to 31 December of the previous year as appropriate, in relation to the tariff base for each of the relevant industry blocks set out in FEES 5 Annex 1.

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2. (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. (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. (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 2 of FEES 4 Annex 1.

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5. (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:

   1. (a)

      the firm must pay an administrative fee of 250 (but not if it is already subject to an administrative fee under FEES 4 Annex 2, Part 1 or FEES 6.5.16 R for the same financial year); and

   2. (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 3FSA 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

1 2The requirements in FEES 5.5A apply to:

1. (1)

   every firm, payment service provider or electronic money issuer which is subject to the Compulsory Jurisdiction and every licensee which is subject to the Consumer Credit Jurisdiction of the Financial Ombudsman Service; and

2. (2)

   every other person who is subject to the Compulsory Jurisdiction in relation to relevant complaints.

References in FEES 5.5A to "firms" are to be construed, where relevant, as including:

1. (1)

   in accordance with the Ombudsman Transitional Order, unauthorised persons subject to the Compulsory Jurisdiction in relation to relevant complaints (see Transitional Provisions 6 and 7 of DISP); and

2. (2)

   as a result of section 226 of the Act, unauthorised persons who were formerly firms in respect of complaints about acts or omissions which occurred at the time when they were firms, provided that the Compulsory Jurisdiction rules were in force in relation to the activity in question.

The purpose of FEES 5.5A is to set out the requirements on firms, payment service providers, electronic money issuers, VJ participants (through the standard terms) and licensees to pay case fees (invoiced and collected directly by the FOS Ltd) in order to fund the operation of the Financial Ombudsman Service. FEES 5.5A also provides for unauthorised persons to pay case fees to the FOS Ltd in respect of any relevant complaints which it handles.

A firm or a licensee must pay to the FOS Ltd the standard case fee specified in FEES 5 Annex 3R in respect of each chargeable case relating to that firm or licensee which is closed by the Financial Ombudsman Service, unless a special case fee is payable or has been paid in respect of that case under FEES 5.5A.13 R to FEES 5.5A.22 R.

FEES 5.5A.6 R applies to payment service providers and electronic money issuers in the same way as it applies to firms.

A credit union which is subject to the minimum levy in an industry block is not required to pay a standard case fee in respect of chargeable cases relating to that industry block.

Any firm falling into either industry block 13 or industry block 15 in FEES 5 Annex 1 R is not required to pay the standard case fee in respect of chargeable cases relating to those industry blocks.

A firm must pay to the FOS Ltd a special case fee, as specified in FEES 5 Annex 3R in respect of each chargeable case relating to that firm which is closed by the Financial Ombudsman Service and which was referred to the Financial Ombudsman Service by eligible complainants who fall within DISP 2.7.3 R (2) or DISP 2.7.6R (12)(a).

FEES 5.5A.13 R applies to payment service providers and electronic money issuers in the same way it applies to firms.

A firm which ceases to be authorised must pay to the FOS Ltd a special case fee, as specified in FEES 5 Annex 3R in respect of each chargeable case relating to that firm which is closed by the Financial Ombudsman Service and which concerned an act or omission occurring when the firm was authorised and where the complaint was made after its authorisation ceased.

FEES 5.5A.15 R applies to persons which cease to be licensees in the same way as it applies to firms which cease to be authorised.

FEES 5.5A.15 R applies to persons which cease to be payment service providers or electronic money issuers in the same way as it applies to firms which cease to be authorised.

An unauthorised person who is subject to the Compulsory Jurisdiction in relation to a relevant complaint must pay to the FOS Ltd a special case fee as specified in FEES 5 Annex 3R in respect of each chargeable case relating to that unauthorised person which is closed by the Financial Ombudsman Service.

A firm which was a member of PIA before commencement must pay to the FOS Ltd a special case fee, as specified in FEES 5 Annex 3R, in respect of each chargeable case relating to that firm received by the Financial Ombudsman Service after commencement and before 31 March 2002.

FEES 5.5A.20 R does not apply in relation to a chargeable case which relates to a complaint which proceeded or would have proceeded under a former scheme other than the PIA Ombudsman scheme.

A firm which was not a member of a former scheme before the commencement day must pay to the FOS Ltd a special case fee, as specified in FEES 5 Annex 3R, in respect of each chargeable case which relates to business conducted by the firm after the commencement day and which is closed by the Financial Ombudsman Service before 31 March 2002.

Notwithstanding the above, a firm, payment service provider, electronic money issuer or licensee will only be liable for, and the FOS Ltd will only invoice for, the standard case fee or, as the case may be, the special case fee, in respect of the fourth and subsequent chargeable cases in any financial year.

A firm, payment service provider or electronic money issuer which is exempt under DISP 1.1.12 R is also exempt from FEES 5.5A.

A firm, payment service provider or electronic money issuer will only be exempt from FEES 5.5A.28 R to FEES 5.5A.30 R, as applicable, for any given financial year if it met the conditions in DISP 1.1.12 R on 31 March of the immediately preceding financial year.

A firm or licensee must pay to the FOS Ltd any standard case fee or special case fee which it is liable to pay under FEES 5.5A.6 R, FEES 5.5A.13 R, FEES 5.5A.15 R, FEES 5.5A.18 R, FEES 5.5A.20 R, or FEES 5.5A.22 R , as appropriate, in respect of chargeable cases for which it is invoiced by the FOS Ltd within 30 calendar days of the date when the invoice is issued by the FOS Ltd.

FEES 5.5A.28 R applies to payment service providers and electronic money issuers in the same way it applies to firms.

A firm or an unauthorised person which is subject to the Compulsory Jurisdiction in relation to a relevant complaint must pay any standard case fee or special case fee within 30 calendar days of the date when the invoice is issued by the FOS Ltd.

Where a firm ceases to be authorised part way through a financial year:

1. (1)

   it will remain liable to pay standard case fees in respect of chargeable cases against it which are closed by the Financial Ombudsman Service for the remainder of that financial year; and

2. (2)

   it must pay the special case fee specified under FEES 5.5A.15 R in respect of any other chargeable cases against it which are closed by the Financial Ombudsman Service.

FEES 5.5A.31 R applies to persons ceasing to be licensees or payment service providers or electronic money issuers part way through a financial year in the same way as it applies to firms which cease to be authorised.

FEES 2.2.1 R applies as if a reference in that rule to the FOS levy is a reference to case fees payable under FEES 5.5A and a reference to the FSA is a reference to the FOS Ltd.

FEES 2.3.1 R and 2.3.2R applies as if a reference in those rules to the FOS levy is a reference to case fees payable under FEES 5.5A and a reference to the FSA is a reference to the FOS Ltd.

A firm must pay annually to the FSA the general levy on or before the later of 1 April and 30 calendar days after the date when the invoice is issued by the FSA.

A firm liable to pay fees under FEES 5.7.1 R must do so using one of the methods set out in FEES 4.2.4 R save that no additional amount or discount is applicable.

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'sgeneral 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 Regulations4or had its permission and/or payment services activities extended (relevant permissions)3 and the following 12 months ending on the 31 March;3 and

      33
   2. (b)

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

      3
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.

   3
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.

      3
   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:

      3
      1. (i)

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

         3
      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 ruleFEES 4 Annex 1R Part 3 is modified in relation to the calculation of that firms valuation date in its second financial year.