FEES 6.2 Exemption

1. (1)

   3Except as set out in (3), a participant firm which does not conduct business in respect of which the FSCS may pay compensation4 and has no reasonable likelihood of doing so is exempt from a specific costs levy, or a compensation costs levy, or both, provided that:

   1. (a)

      it has notified the FSCS in writing that those conditions apply; and

   2. (b)

      the conditions in fact continue to apply.

2. (2)

   The exemption takes effect from the date on which the notice was received by the FSCS, subject to FEES 6.2.6 R.

3. (3)

   The exemption in (1) does not apply in respect of a specific costs levy or compensation costs levy arising from the firm's membership of any of the following:5

   1. (a)

      category 1.2 (General insurance provision) of class 1 (the General Insurance Distribution Claims class); or5

   2. (b)

      categories 2.2 (Life insurance provision), 2.3 (Investment provision) or 2.4 (Structured deposits provision) of class 2 (Investment Intermediation Claims class); or5

   3. (c)

      category 4.2 (Home finance provision) of class 4 (the Home Finance Intermediation Claims class); or5

   4. (d)

      category 5.2 (Consumer credit provision) of class 5 (the Debt Management Claims class); or5

   5. (e)

      the deposit acceptors’ contribution class.5

FEES 6.2.1AR4 does not apply to a participant firm that may be subject to a claim under COMP 3.2.4 R.

A participant firm which is exempt under FEES 6.2.1AR4 must notify the FSCS in writing as soon as reasonably practicable if the conditions in FEES 6.2.1AR4 no longer apply.

1For the purposes of FEES 6.2.1AR4 a participant firm will only be exempt from a specific costs levy or compensation costs levy for any given financial year4 if it met the conditions in FEES 6.2.1AR4 on 31 March of the immediately preceding financial year4.