FEES 6.2 Exemption
- (1)
A participant firm which does not conduct business that could give rise to a protected claim by an eligible claimant and has no reasonable likelihood of doing so is exempt from a specific costs levy, or a compensation costs levy, or both, provided that:
- (a)
it has notified the FSCS in writing that those conditions apply; and
- (b)
the conditions in fact continue to apply.
- (a)
- (2)
The exemption takes effect from the date on which the notice was received by the FSCS, subject to FEES 6.2.6 R.
FEES 6.2.1 R does not apply to a participant firm that may be subject to a claim under COMP 3.2.4 R.
A participant firm to which FEES 6.2.2 R applies must report annual eligible income in accordance with FEES 6.5.13 R. Such a participant firm may take advantage of the option to report its annual income attributable to business conducted with or on behalf of eligible claimants.
A participant firm which is exempt under FEES 6.2.1 R must notify the FSCS in writing as soon as reasonably practicable if the conditions in FEES 6.2.1 R no longer apply.
A participant firm to which the conditions in FEES 6.2.1 R no longer apply will then become subject to FEES 6.3.
The financial year of the compensation scheme is the twelve months ending on 31 March.
1For the purposes of FEES 6.2.1 R a participant firm will only be exempt from a specific costs levy or compensation costs levy for any given financial year if it met the conditions in FEES 6.2.1 R on 31 March of the immediately preceding financial year.