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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 FCA 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 rule11 made by the FCA in this chapter applies 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 5.5B19 and described in FEES 5.1.2 AG.

8
FEES 5.1.1A R RP

5A reference to firm in this chapter includes a reference to a fee-paying payment service provider, fee-paying electronic money issuer,9 a CBTL firm, a designated finance platform10and a designated credit reference agency9.

6 19 7 18
FEES 5.1.1B R RP

7 18 FEES 5.1.1A R does not apply to 19FEES 5.5B or FEES 5 Annex 2R or Annex 3R unless otherwise stated in rules made by the FOS Ltd.

19
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 FCA.718

7 18
FEES 5.1.2A G RP

7 18Table of FEES 5 rules made by the FOS Ltd

FEES 5 rules made by the FOS Ltd

Description

FEES 5.5B 19

19

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 FCA 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 5.2 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 FCA. The annual budget must distinguish between the costs of operating the Compulsory Jurisdiction and the Voluntary Jurisdiction.

3
FEES 5.2.2 G RP

Section 234 of the Act (Industry Funding) enables the FCA 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

[deleted]3

FEES 5.2.2B G

[deleted]3

3
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 5.2.4 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 FCA 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 FCA 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 FCA will specify a minimum levy for firms in each industry block.

FEES 5.3.6 R RP

A firm must pay to the FCA 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 Jurisdiction4 is calculated as follows:

1 9
  1. (1)

    identify each of the tariff bases set out in FEES 5 Annex 1 which apply to 4the 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 (except industry blocks 2 and 4, in which case calculate the sum payable for that year)4;

  3. (3)

    add together the amounts calculated under (2).

    4

    3
FEES 5.3.8A R

11A VJ participant which becomes subject to the Financial Ombudsman Service part way through a financial year must pay a proportion of the annual levy required by FEES 5.3 and FEES 5 Annex 2R, to be calculated as follows:

  1. (1)

    a VJ participant joining during the first quarter of the financial year will pay 100% of the annual levy;

  2. (2)

    a VJ participant joining during the second quarter of the financial year will pay 75% of the annual levy;

  3. (3)

    a VJ participant joining during the third quarter of the financial year will pay 50% of the annual levy; and

  4. (4)

    a VJ participant joining during the fourth quarter of the financial year will pay 25% of the annual levy.

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 FCA 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 FCA) with a statement of:

    1. (a)

      the total amount of relevant business (measured in accordance with the appropriate tariff base(s)) which it conducted; or8

    2. (b)

      in the case of firms in industry blocks 2 and 4, the gross written premium for fees purposes as defined in FEES 4 Annex 1AR (unless FEES 5.4.1R(1A) applies),8

    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.

    8

    5167
  2. (1A)

    A firm in industry blocks 2 and 4, has notified the FCA of the amount of gross written premium for fees purposes, as defined in FEES 4 Annex 1AR, that relates to relevant business. The notification must be made by the 30 May each year.

  3. (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

  4. (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.

  5. (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 3 of FEES 4 Annex 1A.15

    51615
  6. (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 15FEES 4 Annex 2A, Part 115, 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 3FCA 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 5.4.1-A R
  1. (1)

    8In the case of firms in industry blocks 2 and 4 the requirements under FEES 5.4.1R apply in relation to the tariff bases(s) and tariff data in FEES 5 Annex 1R.

  2. (2)

    If a firm is a UK Solvency II firm, an incoming EEA firm or an incoming Treaty firm in industry blocks 2 and 4 in FEES 5 Annex 1R, the FCA may use tariff data from the previous reporting period for the periodic fees calculation if the PRA or the FCA has either:

    1. (a)

      not received the necessary tariff data in a timely basis in line with Part 3 and 5 of FEES 4 Annex 1AR; or

    2. (b)

      deemed the tariff data received to be incomplete or insufficiently reliable, by reference to a specific firm or across all or part of the industry block.

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 5.4.1B R

9For firms in industry blocks 2 and 4, if the data source specified in the applicable tariff base in Part 3 of FEES 4 Annex 1AR is not available to the PRA or FCA for any reason and the same data is available to the PRA or FCA from an alternative source, the FCA may use that alternative source to calculate the tariff rates under FEES 5 Annex 1R.

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 5.5B Case fees

Application

FEES 5.5B.1 R RP

4 FEES 5.5B applies to respondents.

FEES 5.5B.2 G RP

VJ participants are included as a result of DISP 4.2.6 R.

FEES 5.5B.3 R RP

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

FEES 5.5B.4 G RP

The firms in industry blocks 13 and 15 are cash plan health providers and small friendly societies. The case fee exemption takes into account that the amount in 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 setting of the relevant general levy.

FEES 5.5B.5 R RP

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

FEES 5.5B.6 G RP

Arrangements similar to those for firms in industry blocks 13 and 15 have been made for small credit unions under FEES 5.5B.5 R.

FEES 5.5B.7 R RP
  1. (1)

    Any of the following persons which is exempt under DISP 1.1.12R is also exempt from FEES 5.5B:1

    1. (a)

      a firm;1

    2. (b)

      a payment service provider;1

    3. (c)

      an electronic money issuer; 2

      1
    4. (d)

      a designated credit reference agency; and2

      1
    5. (e)

      2a designated finance platform.

  2. (2)

    However, a person will only be exempt from FEES 5.5B in any financial year if it met the conditions in DISP 1.1.12R on 31 March of the immediately preceding financial year.1

Purpose

FEES 5.5B.8 R RP

The purpose of FEES 5.5B is to set out the requirements on respondents to pay fees in relation to cases referred to the Financial Ombudsman Service.

FEES 5.5B.9 R RP

These fees are towards funding the Financial Ombudsman Service, and are invoiced and collected directly by the FOS Ltd.

FEES 5.5B.10 G RP

In each of the Financial Ombudsman Service's jurisdictions, the annual budget reflects the total expected to be raised by levies plus the total expected to be raised by case fees for the relevant financial year.

FEES 5.5B.11 G RP

The amount of the case fees will be subject to consultation each year.

Standard case fee

FEES 5.5B.12 R RP

A respondent must pay to the FOS Ltd the standard case fee specified in FEES 5 Annex 3R Part 1 in respect of each chargeable case relating to that respondent which is closed by the Financial Ombudsman Service , unless the respondent is identified as part of a charging group as defined in FEES 5 Annex 3R Part 3.

FEES 5.5B.13 G RP

The exclusion of respondents that are identified as part of a charging group as defined in FEES 5 Annex 3R Part 3 applies only from 1 April 2013. Those respondents continue to be liable for the standard case fee under FEES 5.5B.12 R in respect of chargeable cases closed by the Financial Ombudsman Service before 1 April 2013.

FEES 5.5B.14 R RP

But a respondent will only be liable for, and the FOS Ltd will only invoice for, the standard case fee in respect of the 26th and subsequent chargeable cases in any financial year.

FEES 5.5B.15 G RP

Until 31 March 2004 a standard case fee was payable for every chargeable case. From 1 April 2004 to 31 March 2005 the standard case was payable for the third and subsequent chargeable cases. From 1 April 2005 to 31 March 2013 the standard case fee was payable for the fourth and subsequent chargeable cases. FEES 5.5B.12 R does not apply retrospectively to financial years before 1 April 2013.

FEES 5.5B.16 R RP

A respondent must pay to the FOS Ltd any standard case fee which it is liable to pay under FEES 5.5B and which is invoiced by the FOS Ltd within 30 calendar days of the date when the invoice is issued by the FOS Ltd.

Supplementary Case fee

FEES 5.5B.17 R RP

A respondent must pay to the FOS Ltd the supplementary case fee specified in FEES 5 Annex 3R Part 2 in respect of each chargeable case (PPI) relating to that respondent which is referred to the Financial Ombudsman Service, as well as any standard case fee under FEES 5.5B.12 R, unless the respondent is identified as part of a charging group as defined in FEES 5 Annex 3R Part 3.

FEES 5.5B.18 G RP

The exclusion of respondents that are identified as part of a charging group as defined in FEES 5 Annex 3R Part 3 applies only from 1 April 2013. Those respondents continue to be liable for the supplementary case fee under FEES 5.5B.17 R in respect of chargeable cases (PPI) referred to the Financial Ombudsman Service before 1 April 2013.

FEES 5.5B.19 R RP

Notwithstanding the above, a respondent 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 relating to that respondent that fall within 5FEES 5.5B.17 R5 in any financial year.

Special case fee

FEES 5.5B.20 R RP

If the respondent is identified as part of a charging group as defined in FEES 5 Annex 3R Part 3, the charging group must pay the special case fee calculated under FEES 5 Annex 3R Part 4 (from 1 April 2013) instead of the respondent paying the standard case fee. or the supplementary case fee.

FEES 5.5B.21 R RP

The FOS Ltd:

  1. (1)

    will invoice the special case fee as described in FEES 5 Annex 3R Part 4; and

  2. (2)

    may invoice the relevant charging group through any of the individual respondents in the relevant charging group.

FEES 5.5B.22 R RP

A charging group must pay to the FOS Ltd any special case fee (including any year-end adjustment) as described in FEES 5 Annex 3R Part 4 within 30 calendar days of the date when the invoice is issued by the FOS Ltd.

FEES 5.5B.23 R RP

In respect of the special case fee, individual respondents are jointly and individually liable for the obligations of the charging group of which they are identified as forming part in FEES 5 Annex 3R Part 3.

Leaving the Financial Ombudsman Service

FEES 5.5B.24 R RP

Where a respondent ceases to be a firm, payment service provider, electronic money issuer, CBTL firm, 6a designated credit reference agency, a designated finance platform, VJ participant or claims management company3 (as the case may be) part way through a financial year it will remain liable to pay case fees under FEES 5.5B in respect of cases within the jurisdiction of the Financial Ombudsman Service.

2 1 5

Late payment and remission of case fees

FEES 5.5B.25 R RP

If a respondent does not pay a case fee payable under FEES 5.5B in full to the FOS Ltd before the end of the date on which it is due, that respondent must pay to the FOS Ltd in addition:

  1. (1)

    an administrative fee of £250; plus

  2. (2)

    interest on any unpaid amount at the rate of 5% per annum above the Official Bank Rate from time to time, accruing on a daily basis from the date on which the amount concerned became due.

FEES 5.5B.26 G RP

The FOS Ltd may take steps to recover any money owed to it (including interest).

FEES 5.5B.27 R RP

If it appears to the FOS Ltd that in the exceptional circumstances of a particular case the payment of any case fee under FEES 5.5B would be inequitable, the FOS Ltd may (unless FEES 5.5B.29 R applies) reduce or remit all or part of the case fee in question which would otherwise be payable.

FEES 5.5B.28 R RP

If it appears to the FOS Ltd that in the exceptional circumstances of a particular case to which FEES 5.5B.27 R does not apply the retention by the FOS Ltd of any case fee which has been paid would be inequitable, the FOS Ltd may (unless FEES 5.5B.29 R applies) refund all or part of that case fee.

FEES 5.5B.29 R RP

The FOS Ltd may not consider a claim under FEES 5.5B.27 R and/or FEES 5.5B.28 G in respect of any amount overpaid due to a mistake of fact or law by the payer, if the claim is made by the payer more than 2 years after the beginning of the financial year to which the payment relates.

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 FCA 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 FCA.

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 specified in the formula set out in FEES 4.2.7ER8.

2 5 5
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 FCA financial year following the FCA 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 FCA financial year 3or the twelve months ending 31 December before the start of 3the FCA 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 FCA 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 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 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 20146and 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 FCA's financial year unless otherwise stated.

6

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 and gross technical liabilities6

31 March 20146- so projected valuations will be used

6

1 November to 31 December 20146.

6

Portfolio managers (including those holding client money/ assets and not holding client money/ assets)

6

Relevant funds under management

Valued at 31 December

Valued at 31 December

Advisers,6arrangers, dealers or brokers holding and controlling client money and/or assets

6

Annual income as defined in FEES 4 Annex 11A6

6

31 December. 6

This is because the firm's tariff base is calculated by reference to the firm's financial year end in the calendar year before the start of the FCAfee year. Therefore FEES 5.8.2R (3)(c) applies. 6

6

1 November to 31 December but annualised in accordance with FEES 5.8.2R (3)(c)(iii)6

6

7[Note: Transitional provisions apply to FEES 5.8.1R, FEES 5.8.2R and FEES 5.8.3G – see FEES TP 13]

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 47 19 46 17 53 24 25 25 27 29 30 Annual General Levy Payable in Relation to the Compulsory Jurisdiction for 2019/2034

R

Introduction: annual budget

1. The annual budget for 172018/1933 approved by the FCA24 is £289.8m33.17

2. The total amount expected to be raised through the general levy in 172018/1933 will be £24.5m27. 17

Compulsory jurisdiction - general levy 16 54

6 9 12 15 17 19 21 24 24 25 25 27 29 21 24 12 15 17 19 19 21 24 24 25 25 27 29 16 54 6 9 15 17 19 21 24 24 25 25 27 29 17 19 19 21 24 24 19 19 21 24 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

£0.04466331715 per relevant account, subject to a minimum levy of £211001

6 9 12 15 17 19 19 21 24 24 25 25 27 29

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

Gross written premium for fees purposes (GWP) as defined in FEES 4 Annex 1AR; or31

Relevant gross written premium (RGWP) notified to the FCA under FEES 5.4.1R(1A)31

£0.069331715 per £211,000 of GWP or RGWP31, subject to a minimum levy of £2110033

6 9 1 10 15 17 19 19 21 24 25 25 27 29 31 31

3-The Society (of Lloyd's)

Not applicable

£25,9892117 to be allocated by the Society

15 17 19 19 21

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

Gross written premium for fees purposes (GWP) as defined in FEES 4 Annex 1AR; or31

Relevant gross written premium (RGWP) notified to the FCA under FEES 5.4.1R(1A)31

17 25£0.008533 per £211,000 of GWP or RGWP31, subject to a minimum levy of £130331

6 9 12 15 17 19 19 21 24 24 25 25 27 31 21 31 21

5. Portfolio managers22 (including those holding client money/assets and not holding client money/assets)

22

Flat fee12

12

1Levy of £2302917

6 9 17 19 19 21 24 24

6. Managers and depositaries of investment funds, and operators of collective investment schemes or pension schemes22

2 22

Flat fee

Levy of £602417

6 17 19 19 21 24

7-Dealers as principal

Flat fee

Levy of £752117

17 19 19 21

8-Advisors,20arrangers, dealers or brokers holding and controlling client money and/or assets

20

Annual income as defined in FEES 4 Annex 11A relating to firm’s relevant business.20

20

17 1 20£0.13633 per £1,000 of annual income subject to a minimum fee of £4521

6 9 12 15 17 19 6 9 12 15 20 21 24 24 25 25 29

9-Advisors,20arrangers, dealers or brokers not holding and controlling client money and/or assets

20

Annual income as defined in FEES 4 Annex 11A relating to firm'srelevant business.20

20

17£0.03333 per £1,000 of annual income subject to a minimum fee of £4521

9 12 15 17 19 19 9 15 20 20 21 24 24 25 25 29

10-Corporate finance advisers

Flat fee

Levy of £552117

17 19 19 21

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

For authorised payment institutions, registered account information service providers, 30electronic 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

£0.00033317 per £211,000 of relevant income subject to a minimum levy of £217515

15 17 19 19 21 24 24

For small payment institutions and small electronic money institutions17a flat fee13

17

Levy of £35211713

17 19 19 21 15

29

29

6 9 15 19 19 21 24 24 25 25 27 15 1

13-Cash plan health providers

Flat fee

Levy of £652117

17 19 19

14-Credit unions

Flat fee

Levy of £552117

17 19 19 21

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

Flat fee

Levy of £652117

17 19 19 21

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

3 6 9

Flat fee

Levy of £902417

9 12 15 17 19 19 21 24

17 - General insurance distribution32 (excluding firms in blocks 13, 14 & 15)

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

12

17 25£0.447733 per £211,000 of annual income (as defined in MIPRU 4.3) relating to firm'srelevant business subject to a minimum levy of £10021

9 12 15 17 19 19 21 24 24 25 25 27 29 12 15 15 21

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 3.18

18 19

£0.000729 per £211,000 of average outstanding electronic money subject to a minimum levy of £21403318

18 19 21 24 24 19

For small electronic money institutions, a flat fee

Levy of £21501923

19

2319 - Credit-related regulated activities with limited permission

For not-for-profit debt advice bodies, a flat fee

Levy of £024

24

For all other firms with limited permission, a flat fee

Levy of £3524

24

2320 - Credit-related regulated activities

Annual income as defined in FEES 4 Annex 11BR

Levy of £35

Plus £0.0133 per £1,000 of annual income on income above £250,00024

24 29

21 -26CBTL firms55 that do not have permission to carry out any regulated activities27

Flat fee55

Levy of £3527

55

2622 - designated credit reference agencies (but excluding firms in any other industry block)

Flat fee

Levy of £7529

2823 – designated finance platforms (but excluding firms in any other industry block)

28Flat fee

Levy of £7529

28

3424 – claims management companies

Annual income

£50 plus £3.00 per £1,000 of annual income

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 1A46 and Part 2 and Part 2A of FEES 4 Annex 1117.

46

6

Where the tariff base in the table is defined in similar terms as that for the equivalent activity group in46 Part 3 of FEES 4 Annex 1A46 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 (except for firms in industry blocks 2 and 4).31

46

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 9 10 13 14Annual Levy Payable in Relation to the Voluntary Jurisdiction 2018/19

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 administrators10 and8 debit/credit/charge card issuers and merchant acquirers8

10 8 8

number of accounts relevant to the activities in DISP 2.5.1 R8

8

£100.0278

£10100

2V

VJ participants undertaking general8 insurance activities

6

5 8

per £101,000 of gross written premium6

£0.103166

10 16

£100166

10 16

3V

VJ participants undertaking life8 insurance activities

6

5 8

per15 £101,000 of gross written premium6

16£0.0256

10 16

16£1006

10 16

6V

Intermediaries

n/a

n/a

£1075

7V

Freight-forwarding companies

n/a

n/a

£1075

8V

National Savings & Investments

n/a

n/a

£1010,000

9V

Post Office Limited

n/a

n/a

£102,0008

8

10V

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

(a) regulated activities; or12

(b) payment services; 12

or would be if they were carried on from an establishment in the United Kingdom12

8 12 12 11 11 8 12

n/a

n/a

£1075

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

average15 outstanding electronic money as described in FEES 4 Annex 11 Part 39

9

£100.1016 per £101,0009

9

£1075

1213V

Persons not covered by 1V to 9V undertaking activities which are CBTL activities or would be if they were carried on from an establishment in the United Kingdom

n/a15

n/a15

£7515

314V

Persons not covered by 1V to 9V providing credit information, under the Small and Medium Sized Business (Credit Information) Regulations or providing specified information under the Small and Medium Business (Finance Platforms) Regulations4or would be if it was carried on from an establishment in the United Kingdom

n/a15

n/a15

£7515

Notes6

(1) For the purposes of FEES 5 Annex 2R and for VJ participants undertaking general insurance activities (industry block 2V) ‘gross written premium’ means:6

(a) if subject to reporting requirements under the Solvency II Directive, the total of items entered under row codes R0110, R0120 and R0130, as expressed in column code C0200 where this column is completed for those row codes, of the annual quantitative reporting template S.05.01.01 but only in relation to the relevant business of the VJ participant (in accordance with DISP 4.2.6(5)R and FEES 5.3.8R); and6

(b) if not subject to reporting requirements under the Solvency II Directive, the gross premiums written but only in relation to the relevant business of the VJ participant (in accordance with DISP 4.2.6(5)R and FEES 5.3.8R)6.

(2) For the purposes of FEES 5 Annex 2R and for VJ participants undertaking life insurance activities (industry block 3V) ‘gross written premium’ means:6

(a) if subject to reporting requirements under the Solvency II Directive, the item entered under row code R1410, column code C0300 of the annual quantitative reporting template S05.01.01 minus corporate pension business under the annual quantitative reporting template S14.01.01 but only in relation to the relevant business of the VJ participant (in accordance with DISP 4.2.6(5)R and FEES 5.3.8R); and6

(b) if not subject to reporting requirements under the Solvency II Directive, the minimum levy would apply.6

(3) ‘Annual quantitative reporting template’ has the meaning given in Fees Chapter 1 Application and Definitions of the PRA Rulebook.6

(4) ‘Corporate pension business’ has the meaning given in Fees Chapter 1 Application and Definitions of the PRA Rulebook. 6

FEES 5 Annex 3R 4 6 8 9Case Fees Payable for 2018/1911

R

5Part 1 - Standard case fees

Standard case fee

 6

In the:

Compulsory jurisdiction and Voluntary jurisdiction

7

[£550]6

unless it is a not-for-profit debt advice body with limited permission in which case the amount payable is £07

 6

Notes

1

The definition of standard case fee is in FEES 5.5B (Case fees). The definition of chargeable case is in the Glossary to the Handbook.6

6

2

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

6

3

A respondent6 will only be invoiced a case fee for the 26th6 and subsequent chargeable case in each financial year.

6 6

74

The definition of not-for-profit debt advice body is in the Glossary to the Handbook.

75

The definition of limited permission is in the Glossary to the Handbook.

Part 2 - Supplementary case fees

Supplementary6 case fee

6 		6

In the:

Compulsory jurisdiction and Voluntary jurisdiction

7

For the 26th and subsequent chargeable cases (PPI)6

6

£607

7 		6

Notes

6

1

The definition of supplementary case fee is in 6FEES 5.5B6 (Case fees). The definition of chargeable case (PPI)6 is in the Glossary to the Handbook.

6

26

6

The supplementary case fee when payable 7will be invoiced by the FOS Ltd on or after the date the case is referred to the Financial Ombudsman Service.

36

6

The supplementary case fee when payable 7will be invoiced for the 26th and subsequent chargeable cases (PPI) against any respondent referred to the Financial Ombudsman Service in each financial year.6

6

7 Part 3 - Charging groups

The charging groups, and their constituent group respondents, are listed below. They are based on the position at 31 December immediately preceding the financial year. For the purposes of calculating, charging, paying and collecting the special case fee, they are not affected by any subsequent change of ownership.

1

Barclays Group, comprising the following firms:

3i BIFM Investments Limited10

Oak Pension Asset Management Limited8

Barclays Asset Management Limited

Barclays Bank Plc

Barclays Bank Trust Company Limited

Barclays Capital Securities Limited

Barclays Insurance (Dublin) Designated Activity Company10

Barclays Insurance (Dublin) Limited

Barclays Insurance Services Company Limited

Barclays Mercantile Business Finance Limited

Barclays Private Clients International Limited

Barclays Sharedealing

Barclays Stockbrokers Limited

Barclays Trust Company Limited10

Clydesdale Financial Services Limited

Firstplus Financial Group Plc

Gerrard Financial Planning Ltd

Gerrard Investment Management Limited

Solution Personal Finance Limited

Standard Life Bank Plc

Woolwich Plan Managers Limited

9

8

2

HSBC Group, comprising the following firms:

CL Residential Limited

HFC Bank Limited

HSBC Alternative Investments Limited

HSBC Bank Malta plc

HSBC Bank plc

HSBC France

HSBC Global Asset Management FCP (France)

HSBC Global Asset Management (France)10

HSBC Global Asset Management (UK) Limited

HSBC Hervet

HSBC International Financial Advisers (UK) Limited

HSBC Investment Funds

HSBC Life (Europe) Limited

HSBC Life (UK) Limited

HSBC Private Bank (Luxembourg) S.A.

HSBC Private Bank (UK) Limited

HSBC Securities (USA) Inc

HSBC SPECIALIST INVESTMENT FUNDS

HSBC Trinkaus & Burkhardt AG

HSBC Trust Company (UK) Ltd

HSBC UK Bank plc11

John Lewis Financial Services Limited8

Marks & Spencer Financial Services plc8

Marks & Spencer Savings and Investments Ltd

Marks & Spencer Unit Trust Management Limited

The Hongkong and Shanghai Banking Corporation Limited

3

Lloyds Banking Group, comprising the following firms:

Aberdeen Investment Solutions Limited10

AMC Bank Ltd

Bank of Scotland (Ireland) Limited

Bank of Scotland Plc

Black Horse Limited

Cheltenham & Gloucester plc

Clerical Medical Financial Services Limited

Clerical Medical Investment Fund Managers Ltd

Clerical Medical Investment Group Limited

Clerical Medical Managed Funds Limited

CLERICAL MEDICAL OPEN ENDED INVESTMENT COMPANY

Halifax Assurance (Ireland) Limited

Halifax Assurance Ireland Ltd10

Halifax Financial Brokers Limited

Halifax General Insurance Services Limited

Halifax Insurance (Ireland) Limited

Halifax Insurance Ireland Ltd

Halifax Investment Services Ltd

Halifax Life Limited

Halifax Share Dealing Limited

HBOS Investment Fund Managers Limited

Insight Investment Global Investment Funds

10

Invista Real Estate Investment Management Ltd

IWeb (UK) Limited

LDC (Managers) Limited

Legacy Renewal Company Limited

Lex Autolease Ltd

Lex Vehicle Leasing Ltd

Lloyds Development Capital (Holdings) Limited

Lloyds Bank Plc

Lloyds TSB Financial Advisers Limited

Lloyds Bank General Insurance Limited

Lloyds Bank Insurance Services Limited

Lloyds TSB Investments Limited

Lloyds Bank Private Banking Limited

Pensions Management (SWF) Limited

Scottish Widows Administration Services Limited

Scottish Widows Annuities Limited

Scottish Widows Bank Plc

Scottish Widows Fund Management Limited

Scottish Widows Limited10

Scottish Widows plc

Scottish Widows Unit Funds Limited

Scottish Widows Unit Trust Managers Limited

St Andrew's Insurance plc

St Andrew's Life Assurance Plc

SW Funding plc10

The Elms Financial Services Ltd10

The Mortgage Business Plc

Uberior Fund Manager Ltd

MBNA Limited11

4

RBS/NatWest Group, comprising the following firms:

Aberdeen Infrastructure Asset Managers Limited10

Adam & Company Investment Management Ltd

Adam & Company Plc

Coutts & Company

Coutts Finance Company

Lombard Finance Ltd8

Lombard North Central Plc8

National Westminster Bank Plc

National Westminster Home Loans Limited

RBOS (UK) Limited8

RBS Asset Management (ACD) Ltd

RBS Asset Management Ltd

RBS Collective Investment Funds Limited

RBS Equities (UK) Limited

RBS Investment Executive Limited

The Royal Bank of Scotland Group Independent Financial Services Limited

The Royal Bank of Scotland N.V.

The Royal Bank of Scotland Plc

Topaz Finance Limited8

Ulster Bank Ireland Designated Activity Company10

Ulster Bank Ireland Limited

Ulster Bank Ltd

5

Aviva Group, comprising the following firms:8

Aviva (Peak No. 1) UK Limited

Aviva Annuity UK Limited

Aviva Equity Release UK Limited

Aviva Health UK Limited

Aviva Insurance Limited

Aviva Insurance Services UK Limited

Aviva Insurance UK Limited

Aviva International Insurance Limited

Aviva Investors Global Services Limited

Aviva Investors London Limited

Aviva Investors Pensions Limited

Aviva Investors UK Fund Services Limited

Aviva Investors UK Funds Limited

Aviva Life & Pensions UK Limited

Aviva Life Services UK Limited

Aviva Pension Trustees UK Limited

Aviva Wrap UK Limited

CGU Bonus Limited

CGU Underwriting Limited

Commercial Union Life Assurance Company Limited

Gresham Insurance Company Limited

Hamilton Life Assurance Company Limited

Hamilton Insurance Company Limited

Norwich Union Life (RBS) Limited

Orn Capital LLP

Scottish Boiler and General Insurance Company Ltd

The Ocean Marine Insurance Company Limited

World Auxiliary Insurance Corporation Limited

Friends10 Annuities Limited9

Friends Life and Pensions Limited9

Friends Life FPLMA Limited9

Friends Life Investment Solutions Limited9

Friends Life Limited9

Friends Life Marketing Limited9

Friends Life Services Limited9

Friends Provident International Limited9

Optimum Investment Management Limited9

Sesame Limited9

6

Direct Line Group, comprising the following firms:8

Churchill Insurance Company Limited

UK Insurance Limited

UK Insurance Business Solutions Limited

7

Nationwide Building Society Group comprising the following firms:8

Cheshire Building Society

Derbyshire Building Society

Derbyshire Home Loans Ltd

Dunfermline Building Society (in building society special administration)

E-Mex Home Funding Limited

Nationwide Building Society

Nationwide Independent Financial Services Limited

Portman Building Society10

8

The Mortgage Works (UK) Plc

UCB Home Loans Corporation Ltd

8

Santander Group, comprising the following firms:8

Abbey National Treasury Services Plc

Abbey Stockbrokers Limited

Cater Allen Limited

Santander Cards UK Limited

Santander Consumer (UK) Plc

Santander UK Plc

Santander ISA Managers Limited8

Hyundai Capital UK Limited8

7 Part 4 - Special case fees

The special case fee shall be calculated and paid as follows:

1

Proportions:

(1) In the calculations that follow in (2), (3) and (4):

new chargeable cases (PPI) for group respondents -

A = twice the number of new chargeable cases (PPI) that were referred to the Financial Ombudsman Service in respect of group respondents from 1 July to 31 December (both dates inclusive) in the immediately preceding financial year.

new chargeable cases (PPI) for all firms -

B = twice the number of new chargeable cases (PPI) that were referred to the Financial Ombudsman Service in respect of all firms (whether or not they are part of a charging group) from 1 July to 31 December (both dates inclusive) in the immediately preceding financial year.

open chargeable cases (PPI) for group respondents -

C = the number of chargeable cases (PPI) referred to the Financial Ombudsman Service in respect of group respondents before 1 January in the immediately preceding financial year which had not been closed before 1 January in the immediately preceding financial year.

open chargeable cases (PPI) for all firms -

D = the number of chargeable cases (PPI) referred to the Financial Ombudsman Service in respect of all firms (whether or not they are part of a charging group) before 1 January in the immediately preceding financial year which had not been closed before 1 January in the immediately preceding financial year.

new for group respondents - chargeable cases (general)

E = twice the number of new chargeable cases (general) that were referred to the Financial Ombudsman Service in respect of group respondents from 1 July to 31 December (both dates inclusive) in the immediately preceding financial year.

new chargeable cases (general) for all firms -

F = twice the number of chargeable cases (general) referred to the Financial Ombudsman Service in respect of all firms (whether or not they are part of a charging group) from 1 July to 31 December (both dates inclusive) in the immediately preceding financial year.

open chargeable cases (general) for group respondents -

G = the number of chargeable cases (general) that were referred to the Financial Ombudsman Service in respect of group respondents before 1 January in the immediately preceding financial year which had not been closed before 1 January in the immediately preceding financial year.

open chargeable cases (general) for all firms -

H = the number of chargeable cases (general) referred to the Financial Ombudsman Service in respect of all firms (whether or not they are part of a charging group) before 1 January in the immediately preceding financial year which had not been closed before 1 January in the immediately preceding financial year.

(2) ‘Proportion X’ for each charging group is a percentage calculated as follows -

A / B x 100

(3) ‘Proportion Y’ for each charging group is a percentage calculated as follows -

{A + C} / {B + D} x 100

(4) ‘Proportion Z’ for each charging group is a percentage calculated as follows -

{E + G} / {F + H} x 100

2

The special case fee is intended to broadly reflect the budgeted workload capacity of the Financial Ombudsman Service and comprises elements in respect of :

(1) new chargeable cases (PPI);

(2) closed chargeable cases (PPI); and

(3) closed chargeable cases (general);

with a free-case allowance of:

(4) 125 new chargeable cases (PPI); and

(5) 1259 closed chargeable cases (general).

8

3

The special case fee for each charging group is a total amount calculated as follows:

(1) in respect of new chargeable cases (PPI) -

{£0 x [220,00011] x the ‘proportion X’} – {£0 x 125}

8 10 9

(2) in respect of closed chargeable cases (PPI) -

£550 x [250,00011] x the ‘proportion Y’

8 10 9

(3) in10 respect of closed chargeable cases (general)-

{£550 x [160,00011] x the proportion Z’} – {£550 x 1259}

8 10 9

4

The FOS Ltd will invoice each charging group for the special case fee (calculated as above) in four equal instalments, payable in advance on the following dates during the financial year:

(1) 1 April (or, if later, when FOS Ltd has sent the invoice);

(2) 1 July;

(3) 1 October; and

(4)9 1 January.

5

Year-end adjustment:

(1) (1) If the actual number of new chargeable cases (PPI) referred to the Financial Ombudsman Service in respect of group respondents during the financial year is more than 10,000 and is more than [115%] of {[220,00011] x the 'proportion X'}:8

(a) the FOS Ltd will invoice the relevant charging group; and

(b) the relevant charging group will pay to FOS Ltd;an additional £35,000 for each block of 100 (or part thereof) new chargeable cases (PPI) in excess of the [115%]. 8

10 9

(2) If the actual number of chargeable cases (general) closed by the Financial Ombudsman Service in respect of group respondents during the financial year is more than [115%] of {[160,00011] x the proportion Z’}:8

(a) the FOS Ltd will invoice the relevant charging group; and

(b) the relevant charging group will pay to FOS Ltd;

an additional £55,000 for each block of 100 (or part thereof) closed chargeable cases (general) over the [115%.].8

10 9

(3) If the actual number of chargeable cases (general) closed by the Financial Ombudsman Service in respect of group respondents during the financial year is less than [85%] of {[160,00011] x the proportion Z’}, the FOS Ltd will promptly repay to the relevant charging group £55,000 for each block of 100 (or part thereof) closed chargeable cases (general) under the [85%.].8

10 9
7 7

FEES 5 Annex 4R Definition of annual income for the purposes of the FOS general levy where the firm is a claims management company

R

1

Annual income definition

Income is defined as turnover.

“Turnover” means the sum of the amounts paid to, or received by, an authorised claims management company in respect of regulated claims management activities in Great Britain, including:

(a) charges, commission, the share of any compensation, fees and subscriptions;

(b) the monetary value of any services received by the claims management company where it makes no payment for those services or where the payment received is worth less than the monetary value of the services; and

(c) the monetary value of any advertising in respect of the claims management company that it has not paid for out of funds referred to in sub-paragraphs (a) and (b).