FEES 7A.4 The SFGB pensions guidance advice levy

1A firm must pay the SFGB pensions guidance levy applicable to it:

1. (1)

   in full and without deduction by 1 August or, if later, within 30 days of the date of the invoice in the fee year to which that sum relates2; and

2. (2)

   in accordance with the rules in this section.

3Where the FCA grants a person’s application for annulment of a cancellation or variation of Part 4A permission under Schedule 6A to the Act and the person falls within FEES 7A.4.1R and the annulment takes effect after 1 August or after the invoice referred to in FEES 7A.4.1R(1) has been issued, then the date for payment referred to in FEES 7A.4.1R(1) does not apply, but the person must pay the SFGB pensions guidance levy applicable to it in full and without deduction, on the date on which the annulment takes effect.

1The SFGB pensions guidance levy applicable to a particular firm is calculated as follows:

1. (1)

   identify each of the activity groups in FEES 7A.1.2R(2) that apply to the business of the firm for the relevant period;

2. (2)

   calculate the amount payable under FEES 7A.4.3R for each of those activity groups;

3. (3)

   modify the result in accordance with, if applicable, FEES 7A.4.4R; and

4. (4)

   apply any payment charge in FEES 4.2.4R.

1The amount payable for a particular activity group is calculated as follows:

1. (1)
   1. (a)

      calculate the size of the firm’s tariff base for the activity group using:

      1. (i)

         the tariff base calculations in Part 3 of FEES 4 Annex 1AR; and

      2. (ii)

         the valuation date requirements in Part 5 of FEES 4 Annex 1AR;

   2. (b)

      exclude best estimate liabilities for fees purposes in the calculation for fee-block A4;

2. (2)

   use the figure in (1) to calculate the levy applicable for each band in FEES 7A Annex 3R;

3. (3)

   add together the sums for each applicable band under (2);

4. (4)

   the amount in (3) is the amount payable by the firm for that activity group.

1For the first fee year during which FEES 7A.4.2R applies to a firm’s permission to carry on a regulated activity, the SFGB pensions guidance levy applicable to that permission must be modified using the formula in FEES 4.2.6R.

1For FEES 7A.4.3R, a firm may apply the relevant tariff bases and rates to its non-UK business, as well as to its UK business, if:

1. (1)

   it has reasonable grounds for believing that the cost of identifying the firm’s UK business separately from its non-UK business is disproportionate to the difference in the SFGB pensions guidance levy payable by it; and

2. (2)

   it notifies the FCA in writing:

   1. (a)

      at the same time as it provides the information concerned under FEES 4.4 (Information on which fees are calculated); or

   2. (b)

      if earlier, at the time it pays the SFGB pensions guidance levy applicable to it.

1The SFGB pensions guidance levy is calculated using the same information that is used to calculate a firm’s periodic fee under FEES 4.

1Where a firm which has not complied with FEES 4.4.2R (information on which fees are calculated) in relation to a particular fee year the SFGB pensions guidance levy for that firm for that fee year is calculated using (where relevant) the valuation(s) of business used to calculate the SFGB pensions guidance levy for that firm for the previous fee year, multiplied by the factor of 1.10.

1The rules in the table in FEES 7A.4.11R and any other rules in FEES included in FEES 7A.4 by cross-reference apply to the SFGB pensions guidance levy in the same way as they apply to periodic fees payable under FEES 4.

1A reference to a periodic fee in a FEES 4 rule incorporated into FEES 7A.4 must be read, for the purposes of applying that rule to the SFGB pensions guidance levy, as a reference to the SFGB pensions guidance levy.