FEES 7.1 Application and Purpose

The purpose of this chapter is to set out the requirements on the persons listed in FEES 7.1.1 R to pay annual CFEB levies in order to establish and fund the CFEB.

Section 6A(1) of the Act (Enhancing public understanding of financial matters etc) (as it had effect before the passing of the Financial Services Act 2012) required4 the FSA to establish the CFEB in order to enhance:

1. (1)

   the understanding and knowledge of members of the public of financial matters (including the UK financial system); and

2. (2)

   the ability of members of the public to manage their own financial affairs.

Paragraph 12(1) of Part 2 of Schedule 1A to the Act enables the FCA to make rules requiring certain2 authorised persons or payment service providers or electronic money issuers2 to pay to the FCA specified amounts or amounts calculated in a specified way in order to meet a proportion of:

1. (1)

   the expenses incurred by the FCA in establishing the CFEB, whenever these were incurred; and

2. (2)

   the expenses incurred, or expected to be incurred, by the CFEB in connection with the discharge of the functions described in FEES 7.1.3 G.

FEES 7 sets out the rules referred to in FEES 7.1.4 G.

The FCA must have regard to other anticipated sources of funding of the costs described in FEES 7.1.4 G when setting the CFEB levy.

The amounts to be paid under the CFEB levy may include a component to cover the FCA's expenses in collecting the payments.

The FCA must pay to the CFEB the amounts that it receives under the CFEB levy apart from amounts in respect of its collection costs (which it may keep).

Paragraph 7(1) of Part 1 of Schedule 1A to the Act requires the CFEB to adopt an annual budget which has been approved by the FCA.

This chapter sets out the method by which the CFEB levy will be calculated. Details of the actual levy payable will vary from year to year, depending on the CFEB's annual budget. These details are set out in FEES 7 Annex 1. New details will be prepared and consulted on for each financial year.

2A firm is not liable to pay a CFEB levy in relation to payment services or electronic money issuance if it is the Bank of England, a government department, a local authority, a municipal bank or the National Savings Bank.