FEES App 1 Annex 2 Further information on fees
Purpose |
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1 |
The purpose of this annex is to set out further information on fees applicable to registered societies which form the registrant-only fee block (Category F). |
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Background |
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2 |
Paragraph 23 of Schedule 1ZA2 to the Act enables the FCA2 to charge fees to cover its expenses in carrying out its functions. 22 |
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3 |
The fees payable by registered societies will vary from one financial year to another and will reflect the FCA's funding requirement for the registrant-only fee block. |
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4 |
For periodic fees, the key components of the fee mechanism are: |
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(1) |
a funding requirement derived from: |
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(a) |
the FCA's financial management and reporting framework; |
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(b) |
the FCA's budget; |
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(c) |
adjustments, as appropriate, for audited variances between budgeted and actual expenditure in the previous accounting year and reserves movements (in accordance with FCA's reserves policy); |
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(2) |
fee blocks, which are broad groupings of fee payers offering similar products and services and presenting broadly similar risks to the FCA's regulatory objectives; |
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(3) |
a costing system to allocate an appropriate part of the funding requirement to each fee block; and |
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(4) |
tariff bases, which, when combined with fee tariffs, allow the calculation of fees. |
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(5) |
The FCA defines fee blocks so that they will depend, for the most part, upon the regulated activities included in the permission held by firms, with a separate fee block for mutual societies which do not conduct regulated activities (registrants). By basing fee blocks on categories of business, the FCA aims to minimise cross-sector subsidies. The funding requirement for the registrant-only fee block will accordingly reflect only the cost of the registration function plus a share of corporate overheads. It will not include any indirect regulatory overheads. |
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Recovery of fees |
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(6) |
Paragraph 23(8) of Schedule 1ZA2 to the Act permits the FCA2 to recover fees as a debt owed to the FCA2 and the FCA2 will consider court action for recovery through the civil courts. 2222 |