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FEES 5.1 Application and Purpose

Application

FEES 5.1.1 R RP

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

7 18
FEES 5.1.1-A G RP

7 18Whilst no rule made by the FSA in this chapter applies to licensees subject to the Consumer Credit Jurisdiction or to VJ participants, some of the guidance may do. The application of rules made by the FOS Ltd in this chapter is set out in FEES 5.5A and described in FEES 5.1.2 AG.

FEES 5.1.1A R RP

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 5.1.1B R RP

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.

FEES 5.1.2 G RP

The rules set out in the table under FEES 5.1.2 AG are made by the FOS Ltd. All other FEES 5 rules are made by the FSA.718

7 18
FEES 5.1.2A G RP

7 18Table of rules made by the FOS Ltd

FEES 5 rules made by the FOS Ltd

Description

FEES 5.5A

Rules relating to case fees

FEES 5 Annex 2R

Annual Levy Payable in Relation to the Voluntary Jurisdiction

FEES 5 Annex 3R

Case Fees Payable
FEES 5.1.3 G

[deleted]718

FEES 5.1.3A G

[deleted]718

7 18

Exemption

FEES 5.1.4 R

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.

3 7 18
FEES 5.1.4A R

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.

3
FEES 5.1.5 R RP

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.

FEES 5.1.6 R

[deleted]718

7 18
FEES 5.1.6A G RP

7 18 Firms which cease to be authorised and therefore subject to the Compulsory Jurisdiction part way through the year will not receive a refund of their general levy except in exceptional circumstances.

Purpose

FEES 5.1.7 G RP

The purpose of this chapter is to set out the requirements on firms to pay annual fees (through a general levy invoiced and collected by the FSA on behalf of FOS Ltd) and case fees (invoiced and collected directly by FOS Ltd) in order to fund the operation of the Financial Ombudsman Service.This Chapter4 also provides for unauthorised persons to pay case fees to FOS Ltd in respect of any relevant complaints which it handles.

4 4
FEES 5.1.8 G

17This chapter also explains the way that the Consumer Credit Jurisdiction will be funded by a combination of contributions collected by the Office of Fair Trading which are paid to FOS Ltd and case fees invoiced and collected directly by FOS Ltd from licensees.

FEES 5.2 Introduction

FEES 5.2.1 G RP

Paragraph 9 of Schedule 17 to the Act (The Ombudsman Scheme) requires FOS Ltd to adopt an annual budget which has been approved by the FSA. The annual budget must distinguish between the costs of operating the Compulsory Jurisdiction, the Consumer Credit Jurisdiction4 and the Voluntary Jurisdiction.

FEES 5.2.2 G RP

Section 234 of the Act (Industry Funding) enables the FSA to require the payment to it or to FOS Ltd, by firms or any class of firm, of specified amounts (or amounts calculated in a specified way) to cover the costs of:

  1. (1)

    the establishment of 1the Financial Ombudsman Service; and

  2. (2)

    its operation in relation to the Compulsory Jurisdiction.

FEES 5.2.2A G

4 Section 234A (1) of the Act (Funding by consumer credit licensees etc.) enables FOS Ltd from time to time and with the approval of the FSA to determine a sum which is to be raised by way of contributions under that section to cover the costs of:

  1. (1)

    the establishment of the Financial Ombudsman Service so far as it relates to the Consumer Credit Jurisdiction;

  2. (2)

    its operation in relation to the Consumer Credit Jurisdiction; and

  3. (3)

    a component to cover the costs of collection of the contributions to that sum (collection costs).

FEES 5.2.2B G

4 FOS Ltd must notify the Office of Fair Trading of every determination made under section 234A(1) and the Office of Fair Trading must give a general notice of every determination so notified. The Office of Fair Trading may by general notice impose requirements on

  1. (1)

    licensees under standard licences which cover to any extent the carrying on of a type of business specified in an order made under section 226A(2)(e) of the Act; or

  2. (2)

    persons who make applications for:

    1. (a)

      standard licences covering to any extent business of such a type; or

    2. (b)

      the renewal of standard licences on terms covering to any extent the carrying on of a business of such a type;

to pay contributions to the Office of Fair Trading for the purpose of raising sums determined by FOS Ltd in accordance with the provisions of section 234A (6) and (7) of the Act.

FEES 5.2.3 G RP

Paragraph 15 of Schedule 17 to the Act enables FOS Ltd to require firms subject to the Compulsory Jurisdiction and any other respondents to a complaint to pay specified fees to it in respect of complaints closed by the Financial Ombudsman Service.

FEES 5.2.3A G

4 Paragraph 16C of Schedule 17 to the Act enables FOS Ltd to require licensees subject to the Consumer Credit Jurisdiction and any other respondents to a complaint to pay specified fees to it in respect of complaints closed by the Financial Ombudsman Service.

FEES 5.2.4 G RP

The Ombudsman Transitional Order provides for unauthorised persons to be charged fees in respect of any relevant complaints against them which the Financial Ombudsman Service handles.

FEES 5.2.5 G RP

Paragraph 18 of Schedule 17 to the Act enables FOS Ltd to require VJ participants to pay to it such amounts at such times as it specifies in the standard terms.

FEES 5.2.6 G RP

The relevant provisions of the rules in FEES 5 and FEES 2 will be applied to VJ participants through the standard terms made by FOS Ltd under paragraph 18 of Schedule 17 to the Act (see DISP 4).

FEES 5.2.7 G RP

This chapter sets out the framework for the funding arrangements of the Financial Ombudsman Service, including, where relevant,25 the method by which fees will be calculated. Details of the actual fees payable will vary from year to year, depending on the annual budget of the Financial Ombudsman Service. These details will be set out in annexes 25to this chapter. New annexes25 will be prepared and consulted on for each financial year.

2 5 2 5

FEES 5.3 The general levy

FEES 5.3.1 G RP

Each financial year, the FSA and FOS Ltd will consult on the amount of the annual budget19of the Financial Ombudsman Service which is to be raised by the general levy.

1 9
FEES 5.3.2 G RP

For the purposes of the general levy, a firm will fall into one or more of the industry blocks set out in FEES 5 Annex 1 depending on the business activities which it conducts.

FEES 5.3.3 G RP

The FSA will determine, following consultation, the amount to be raised from each industry block. This will be based on the budgeted costs and numbers of Financial Ombudsman Service staff required to deal with the volume of complaints which the Financial Ombudsman Service expects to receive about the firms in each industry block. Modified arrangements have been made for certain types of small firms (see FEES 5.5.3 R to FEES 5.5.5 G).

FEES 5.3.4 G RP

FEES 5 Annex 1 sets out the fee tariffs for each industry block.

1 9
FEES 5.3.5 G RP

The FSA will specify a minimum levy for firms in each industry block.

FEES 5.3.6 R RP

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

FEES 5.3.7 G RP

Under the standard terms, VJ participants will be required to pay to FOS Ltd an amount calculated on a similar basis towards the costs of operating the Voluntary Jurisdiction of the Financial Ombudsman Service, see FEES 5 Annex 2R210. FOS Ltd will be responsible for invoicing and collecting this amount.

FEES 5.3.8 R RP

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;

    19
  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).

FEES 5.3.9 R RP

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.

FEES 5.3.10 R RP

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 9

FEES 5.4 Information requirement

FEES 5.4.1 R RP
  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.

    516
  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.

    516
  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
FEES 5.4.1A D RP

6The information requirement set out under FEES 5.4.1 R is applied under this direction to a fee-paying payment service provider and a fee-paying electronic money issuer.

FEES 5.4.2 G RP

Failure to submit a statement in accordance with the rules in this chapter may also lead to the imposition of a financial penalty and other disciplinary sanctions (see DEPP 6.6.1 G to DEPP 6.6.5 G1).

1
FEES 5.4.3 G RP

SUP 16.3 (General provisions on reporting) contains further rules on the method of submission of reports under FEES 5.4.1 R.

FEES 5.4.4 G RP

A firm should not provide a statement of relevant business if it deals only with eligible complainants who are not consumers4. Relevant business is defined in the Glossary as business done with consumers4 only. So FEES 5.4.1 R does not apply in relation to business done with other types of eligible complainant described in DISP 2.7.3R (2), DISP 2.7.6R (12)(a) and DISP 2.7.6R (12)(a);2 the funding of FOS Ltd in relation to that business is by special case fee only (see FEES 5.5.6 R).

4 4 2

FEES 5.5A Case fees

Application

FEES 5.5A.1 R

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.

FEES 5.5A.2 G

DISP 4.2.6 R applies certain rules in FEES to VJ participants as part of the standard terms, but substituting VJ participant for firm. As a result, VJ participants are required to pay the case fees set out in FEES 5.5A.6 R, FEES 5.5A.13 R and FEES 5 Annex 3R.

FEES 5.5A.3 R

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.

FEES 5.5A.4 G

References in FEES 5.5A and FEES 5 Annex 3R to licensees are to be construed, where relevant as a result of section 226A (Consumer credit jurisdiction) of the Act, as including persons who were formerly licensees in respect of complaints about acts or omissions which occurred at the time when they were licensees, provided the complaint falls within a description specified in the Consumer Credit Jurisdiction rules in force at the time of the act or omission.

Purpose

FEES 5.5A.5 R

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.

Standard Case fee

FEES 5.5A.6 R

A firm or a licensee must pay to the FOS Ltd the standard case fee specified in FEES 5 Annex 3R, Part 13 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.7 R

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

FEES 5.5A.8 G

The standard case fee, which will be subject to consultation each year, will be calculated by dividing the annual budget for the Compulsory Jurisdiction, less the amount to be raised by the general levy and the supplementary case fee3, by the estimated number of chargeable cases which the Financial Ombudsman Service expects to close in the relevant financial year.

FEES 5.5A.9 G

For the purposes of the Consumer Credit Jurisdiction, the standard case fee, which will be subject to consultation each year, will be calculated by dividing the annual budget for the Consumer Credit Jurisdiction, less the amount to be raised by the sum determined by the FOS Ltd under section 234A (Funding by consumer credit licensees etc) of the Act and the supplementary case fee3, by the estimated number of chargeable cases which the Financial Ombudsman Service expects to close in the relevant financial year.

FEES 5.5A.10 R

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.

FEES 5.5A.11 R

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.

FEES 5.5A.12 G

The firms in industry blocks 13 and 15 are cash plan health providers and small friendly societies. These arrangements have been made in respect of these firms to take account of the fact that the amount at issue is likely to be small relative to the case fee. Instead, the full unit cost of handling complaints against these firms will be recovered through the general levy in accordance with the relevant tariff-base and no case fee will be payable. Similar arrangements have been made under FEES 5.5A.10 R in respect of small credit unions.

Special case fees: complaints from small businesses

FEES 5.5A.13 R

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.14 R

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

Special case fees: firms which cease to be authorised, persons which cease to be payment service providers or electronic money issuers and persons which cease to be licensees

FEES 5.5A.15 R

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.16 R

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.17 R

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.

Special case fees: relevant complaints against persons who were subject to a former scheme

FEES 5.5A.18 R

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.

FEES 5.5A.19 G

Under the Ombudsman Transitional Order, the FOS Ltd can handle complaints about members of a former scheme which that scheme could have handled before commencement, even if the unauthorised person concerned does not become authorised by the FSA after that date. Where the FOS Ltd handles those complaints, the unauthorised person concerned will be required to pay a special case fee.

Special case fees for 2001/02

FEES 5.5A.20 R

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.21 R

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.

FEES 5.5A.22 R

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.

FEES 5.5A.23 G

A firm which was, before commencement, a member of PIA and a former scheme other than the PIA Ombudsman scheme will not, on account of the exclusion in FEES 5.5A.21 R, be required to pay the special case fee specified by FEES 5.5A.20 R in respect of all chargeable cases relating to it, but only those which arise in respect of investment business matters which would have been eligible under the PIA Ombudsman scheme.

Supplementary case fee

FEES 5.5A.23A R

3A firm or licensee must pay to the FOS Ltd the supplementary case fee specified in FEES 5 Annex 3R , Part 2 in respect of each chargeable case relating to that firm or licensee which:

  1. (1)

    is referred to the Financial Ombudsman Service; and

  2. (2)

    in the Ombudsmans opinion, falls wholly or partly within the scope of DISP App 3 (Handling Payment Protection Insurance Complaints);

as well as any standard case fee under FEES 5.5A.6R or any special case fee under FEES 5.5A.13R to FEES 5.5A.22R.

FEES 5.5A.23B R

3 FEES 5.5A.23A R applies to payment service providers and electronic money issuers in the same way as it applies to firms.

Case fee exemptions3

FEES 5.5A.24 R

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.

FEES 5.5A.25 G

A case fee exemption provision was first applied in the financial year 1 April 2004 to 31 March 2005. For that financial year only, each authorised firm was invoiced for a standard case fee for the third and subsequent chargeable case received by the Financial Ombudsman Service, subject to the annual levy having been invoiced and paid by the firm within the Financial Ombudsman Service's normal credit terms. For the financial year commencing 1 April 2005 and for subsequent financial years, the case fee exemption provision contained in FEES 5.5A.24 R applies. This provision is not retrospectively applicable to financial years prior to 1 April 2005.

FEES 5.5A.25A R

3Notwithstanding 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 supplementary case fee in respect of the 26th and subsequent cases that fall within FEES 5.5A.23A R in any financial year.

FEES 5.5A.26 R

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.

FEES 5.5A.27 R

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.

Payment

FEES 5.5A.28 R

A firm or licensee must pay to the FOS Ltd any standard case fee or supplementary case fee 3 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, FEES 5.5A.22 R or FEES 5.5A.23A R3, 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.29 R

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

FEES 5.5A.30 R

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 or supplementary case fee3 within 30 calendar days of the date when the invoice is issued by the FOS Ltd.

Leaving the Financial Ombudsman Service

FEES 5.5A.31 R

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.32 R

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 5.5A.33 G

Firms, payment service providers and electronic money issuers will continue to be liable for any case fees relating to chargeable cases closed by the Financial Ombudsman Service after they cease to be authorised, or cease to be payment service providers or electronic money issuers. Firms, payment service providers and electronic money issuers will be charged the standard case fee where the complaint was closed by the Financial Ombudsman Service before the end of the year in which their authorisation ceased or, as the case may be, they ceased to be payment service providers or they cease to be electronic money issuers. The special case fee will apply to any complaint closed after the end of that year since the firm or payment service provider or electronic money issuer will no longer be contributing to the general levy.

FEES 5.5A.34 G

Licensees will also continue to be liable for any case fees relating to chargeable cases closed by the Financial Ombudsman Service after they cease to be licensees. Licensees will be charged the standard case fee where the complaint was closed by the Financial Ombudsman Service before the end of the year in which they ceased to be licensees. The special case fee will apply to any complaint closed after the end of that year since the licensee will no longer be contributing to any sum determined under section 234A of the Act.

Late payments and remission of case fees

FEES 5.5A.35 R

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 5.5A.36 G

The FOS Ltd (in respect of case fees) may take steps to recover any money owed to it (including interest).

FEES 5.5A.37 R

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.

FEES 5.6 The supplementary levy

FEES 5.6.1 G

[deleted]1

1
FEES 5.6.2 G

[deleted]1

1
FEES 5.6.3 G

[deleted]1

1
FEES 5.6.4 G

[deleted]1

1
FEES 5.6.5 R

[deleted]1

1
FEES 5.6.6 R

[deleted]1

1
FEES 5.6.7 G

[deleted]1

1

FEES 5.7 Payment

FEES 5.7.1 R RP

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.

1
FEES 5.7.2 R

5[deleted]27

2 7
FEES 5.7.2A R

[deleted]27

2 7
FEES 5.7.3 R

[deleted]27

2 7
FEES 5.7.4 R RP

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.

FEES 5.8 Joining the Financial Ombudsman Service

FEES 5.8.1 R RP

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.

2
FEES 5.8.2 R RP
  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.

        33
    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.

        333
    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.

Application of FEES 5.8.2R

FEES 5.8.3 G RP

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

FEES 5.9 Leaving the Financial Ombudsman Service

FEES 5.9.1 R

[deleted]38

FEES 5.9.1A R

6[deleted]38

3 8
FEES 5.9.2 G

[deleted]38

2 7 1 3 8
FEES 5.9.3 G RP

[deleted]38

3 8

FEES 5 Annex 1R 47Annual General Levy Payable in Relation to the Compulsory Jurisdiction for 2011/121753

R

Introduction: annual budget

1. The annual budget for 2011/12 17 approved by the FSA is 127.9m.17

2. The total amount expected to be raised through the general levy in 2011/1217 will be £42.7m 17(net of £1.8m to be raised from consumer credit firms).12

Compulsory jurisdiction - general levy 16 54

6 9 12 15 17 12 15 17 16 54 6 9 15 17 17 16 54 6 12

Industry block

Tariff base

General levy payable by firm

1-Deposit acceptors, home finance providers,14home finance administrators9 (excluding firms in block 14) and dormant account fund operators14

3 6 9

Number of accounts relevant to the activities in DISP 2.6.1 R9 as at 31 December

In the case of dormant account fund operators, the tariff base is the number of eligible activated accounts (8).14

8 9 17

0.06436481715 per relevant account, subject to a minimum levy of 1001

6 9 12 15 17

2-Insurers - general (excluding firms in blocks 13 & 15)

Relevant annual gross premium income

0.216261715 per 1,000 of relevant annual gross premium income, subject to a minimum levy of 100

6 9 1 10 15 17

3-The Society (of Lloyd's)

Not applicable

48,11617 to be allocated by the Society

15 17

4. Insurers - life (excluding firms in block 15)

Relevant adjusted annual gross premium income

0.03844517 per 1,000 of relevant adjusted annual gross premium income, subject to a minimum levy of 1001

6 9 12 15 17

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

Flat fee12

12

1Levy of 48517

6 9 17

6-Operators, trustees and depositaries of collective investment schemes and operators of personal pension schemes or stakeholder pension schemes2

Flat fee

Levy of 12017

6 17

7-Dealers as principal

Flat fee

Levy of 12517

17

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

Number of relevant persons approved to perform the customer function (CF30), but excluding those persons solely acting in the capacity of an investment manager or solely advising clients in connection with corporate finance business or performing functions relating to these.

36.9817 per relevant approved person subject to a minimum levy of 35151

6 9 12 15 17 6 9 12 15

9-Advisory arrangers, dealers or brokers not holding and controlling client money and/or assets

Number of relevant persons approved to perform the customer function (CF30), but excluding those persons solely acting in the capacity of an investment manager or solely advising clients in connection with corporate finance business or performing functions relating to these.

30.0217 per relevant approved person subject to a minimum levy of 3515

9 12 15 17 9 15

10-Corporate finance advisers

Flat fee

Levy of 13017

17

11-fee-paying payment service providers (but excluding firms in any other Industry block13 except Industry block 18)17

For authorised payment institutions, electronic money issuers (except for small electronic money institutions),17 the Post Office Limited, the Bank of England, government departments and local authorities, and EEA authorised payment institutions relevant income as described in FEES 4 Annex 11 Part 31391

6 9 13

0.04085417 per 1,000 of relevant income subject to a minimum levy of 7515

15 17

For small payment institutions and small electronic money institutions17a flat fee13

17

Levy of 1501713

17 15

12-

N/A for 2010/11151

6 9 15

13-Cash plan health providers

Flat fee

Levy of 12517

17

14-Credit unions

Flat fee

Levy of 12517

17

15-Friendly societies whose tax-exempt business represents 95% or more of their total relevant business

Flat fee

Levy of 12517

17

16-3Home finance providers, advisers and arrangers9 (excluding firms in blocks 13, 14 & 15)

3 6 9

Flat fee

Levy of 11017

9 12 15 17

17 - General insurance mediation (excluding firms in blocks 13, 14 & 15)

Annual income (as defined in MIPRU 4.3) relating to firm'srelevant business12

12

1.64927717 per 1,000 of annual income (as defined in MIPRU 4.3) relating to firm'srelevant business subject to a minimum levy of 8515

9 12 15 17 12 15

1718 - fee-paying electronic money issuers

For all fee-paying electronic money issuers except for small electronic money institutions, average outstanding electronic money, as described in FEES 4 Annex 11 Part 3. This tariff base applies for the period 2012/13.18

18

[tbc]18

18

For small electronic money institutions, a flat fee

180

Notes11

4

[not used]

5

The industry blocks in the table are based on the equivalent activity groups set out in Part 1 of FEES 4 Annex 1 and Part 2 and Part 2A of FEES 4 Annex 1117.

6

Where the tariff base in the table is defined in similar terms as that for the equivalent activity group in Part 2 of FEES 4 Annex 1 or Part 3 of FEES 4 Annex 1117, it must be calculated in the same way as that tariff base - taking into account only the firm'srelevant business.

117

[deleted]17

17

148

Eligible activated accounts are the number of repayment claims met by the dormant account fund operator as at the 31 December.
16 54 16 54 47

47 16 54

FEES 5 Annex 2R 9Annual Levy Payable in Relation to the Voluntary Jurisdiction for 2012/139

R

1 7 Voluntary jurisdiction - annual levy for VJ participants

Industry block and business activity

Tariff basis

Tariff rate

Minimum levy

1V

Deposit acceptors, mortgage lenders and mortgage administrators and8 debit/credit/charge card issuers and merchant acquirers8

8 8

number of accounts relevant to the activities in DISP 2.5.1 R8

8

0.0278

100

2V

VJ participants undertaking general8 insurance activities

8

per 1,000 of relevant annual gross premium income

0.103

100

3V

VJ participants undertaking life8 insurance activities

8

Per 1,000 of relevant adjusted annual gross premium income

0.025

100

6V

Intermediaries

n/a

n/a

75

7V

Freight-forwarding companies

n/a

n/a

75

8V

National Savings & Investments

n/a

n/a

10,000

9V

Post Office Limited

n/a

n/a

2,0008

8

10V

Persons not covered by 1V to 9V undertaking activities which are:

(a) regulated activities

or

(b) payment services or

(b) payment services;

(c) consumer credit activities; or would be if they were carried on from an establishment in the United Kingdom8

8

n/a

n/a

75

812V

Persons undertaking the activity which is the issuance of electronic money or would be if carried on from an establishment in the United Kingdom

Average outstanding electronic money as described in FEES 4 Annex 11 Part 39

9

0.15 per 1,0009

9

75

FEES 5 Annex 3R 4Case Fees Payable for 2012/135

R

5Part 1 - Standard case fees

Standard case fee

Special case fee

In the:

Compulsory jurisdiction; Consumer credit jurisdiction; and Voluntary jurisdiction

500

500

Notes

1

The definitions of standard case fee and special case fee are in FEES 5.5A (Case fees). The definition of chargeable case is in the Glossary to the Handbook.

2

The standard case fee or special case fee will be invoiced by the FOS Ltd on or after the date the case is closed.

3

A firm, licensee or VJ participant will only be invoiced a case fee for the fourthand subsequent chargeable case in each financial year.

Part 2 - Supplementary case fees

Standard case fee

Special case fee

In the:

Compulsory jurisdiction; Consumer credit jurisdiction; and Voluntary jurisdiction

For the 26th and subsequent PPI mis-sale cases

350

350

Notes

1

The definition of supplementary case fee is in FEES 5.5A (Case fees). The definition of chargeable case is in the Glossary to the Handbook.

2

PPI mis-sale cases means any case where, in the Ombudsman's opinion, the complaint fell wholly or partly within the scope of DISP App 3 (Handling Payment Protection Insurance Complaints).

3

The supplementary case fee will be invoiced by the FOS Ltd on or after the date the case is referred to the Financial Ombudsman Service.

4

The supplementary case fee will be invoiced for the 26th and subsequent PPI mis-sale chargeable cases against any firm, licensee or VJ participant referred to the Financial Ombudsman Service in each financial year.