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You are viewing the version of the document as on 2021-11-30.

Timeline guidance

FEES App 2.1 Introduction

Application

FEES App 2.1.1 G

1This Appendix is relevant to:

  1. (1)

    persons applying to become professional body supervisors; and

  2. (2)

    professional body supervisors.

FEES App 2.1.2 G

1The purpose of this Appendix is to set out the requirements for professional body supervisors to pay the application and periodic fees which, together, will provide the funding for the FCA’s functions under the Oversight of Professional Body Anti-Money Laundering and Counter Terrorist Financing Supervision Regulations 2017 (“the OPBAS Regulations”).

FEES App 2.1.3 G

1Regulation 27 of the OPBAS Regulations, in summary, provides that the FCA may impose charges on:

  1. (1)

    a person applying to become a professional body supervisor; and

  2. (2)

    an existing professional body supervisor to recover its costs of supervision.

FEES App 2.1.4 G
  1. (1)

    1The application fee which will be payable by a person applying to become a professional body supervisor is set out in FEES Appendix 2 Annex 1.

  2. (2)

    The detail of the periodic fees which will be payable by professional body supervisors is set out in FEES Appendix 2 Annex 2.

FEES App 2.1.5 G

1In this Appendix:

  1. (1)

    a “note” (indicated by “Note:”) after a provision indicates, for the convenience of readers, that it is a provision made pursuant to Regulation 27 of the OPBAS Regulations; and

  2. (2)

    a “G” in the margin indicates that the provision is guidance, which is designed to throw light on a particular aspect of a direction or the provisions imposing charges, but is neither binding nor an exhaustive description of a professional body supervisor’s obligations.

Glossary of definitions

FEES App 2.1.6 G

1In this Appendix and in FEES TP 19A2, an expression in bold (other than in headings and titles) has the meaning given in FEES Appendix 2 Annex 3G.

FEES App 2.2 Application fees imposed under Regulation 27 of the OPBAS Regulations

General

FEES App 2.2.1

1A person making an application to the FCA to become a professional body supervisor must pay to the FCA, in full and without deduction, the fee specified in FEES Appendix 2 Annex 1.

[Note: Regulation 27 of the OPBAS Regulations]

Method of payment

FEES App 2.2.2

1Application fees must be paid by the method specified in FEES Appendix 2 Annex 1.

[Note: Regulation 27 of the OPBAS Regulations]

Due dates

FEES App 2.2.3

1A person making an application to become a professional body supervisor must pay the application fee on, or before, making the application.

[Note: Regulation 27 of the OPBAS Regulations]

Refunds

FEES App 2.2.4 G

1Application fees paid under this Appendix are not refundable.

FEES App 2.3 Periodic fees imposed under Regulation 27 of the OPBAS Regulations

General

FEES App 2.3.1

1Subject to FEES App 2.3.2, a professional body supervisor must pay to the FCA, in full and without deduction, the periodic fee applicable to it under FEES Appendix 2 Annex 2 for a fee year during which, or part of which, the relevant professional body is included in Schedule 1 to the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (“the MLR”).

[Note: Regulation 27 of the OPBAS Regulations]

Calculating the fee in the professional body supervisor’s first year

FEES App 2.3.2

1A professional body supervisor added to Schedule 1 to the MLR during the course of a fee year must pay the fee calculated in accordance with FEES App 2.3.3.

[Note: Regulation 27 of the OPBAS Regulations]

FEES App 2.3.3

1Apply the formula (A+B) x C, where:

  1. (1)

    A = the minimum fee set out in Part 3 of FEES Appendix 2 Annex 2;

  2. (2)

    B = the variable fee due for the full fee year, calculated in accordance with FEES Appendix 2 Annex 2; and

  3. (3)

    C = the number of complete months (inclusive) between the month during which the professional body supervisor was added to Schedule 1 to the MLR and the last month of that fee year ÷ 12.

[Note: Regulation 27 of the OPBAS Regulations]

FEES App 2.3.4
  1. (1)

    1A professional body supervisor which has not been required by FEES App 2.3.8 to submit the actual information set out in FEES Appendix 2 Annex 2 before the commencement of a given fee year must pay a fee based on information calculated in accordance with FEES Appendix 2 Annex 2 as at [tbc] preceding the relevant fee year.

  2. (2)

    The information referred to in (1) is the information provided by the professional body supervisor in the course of its application to be added to the list of professional bodies in Schedule 1 to the MLR.

[Note: Regulation 27 of the OPBAS Regulations]

Time of payment

FEES App 2.3.5

1If a professional body supervisor’s periodic fee for the previous fee year was at least £50,000, it must pay its periodic fee for the current fee year in two instalments as follows:

  1. (1)

    an amount equal to 50% of the periodic fee payable for the previous fee year by:

    1. (a)

      1 April; or

    2. (b)

      if later, within 30 days of the date of the invoice, in the fee year to which that sum relates; and

  2. (2)

    the balance of the periodic fee due for the current fee year by:

    1. (a)

      1 September; or

    2. (b)

      if later, within 30 days of the date of the invoice, in the fee year to which that sum relates.

[Note: Regulation 27 of the OPBAS Regulations]

FEES App 2.3.6

1If a professional body supervisor’s periodic fee for the previous fee year was less than £50,000, it must pay the periodic fee within 30 days of the date of the invoice for the fee year to which that sum relates.

[Note: Regulation 27 of the OPBAS Regulations]

FEES App 2.3.7 G

1 FEES App 2.3.5 and FEES App 2.3.6 apply in relation to periodic fees payable by a professional body supervisor under this Appendix only. It does not relate to periodic fees payable in a professional body’s capacity as a professional body designated by the Treasury under section 326 of the Financial Services and Markets Act 2000 (Designation of professional bodies) for the purposes of Part XX of that Act (Provision of Financial Services by Members of the Professions).

Information on which fees are calculated

FEES App 2.3.8

1A professional body supervisor must send to the FCA the information required under Part 1 of FEES Appendix 2 Annex 2,2 on which the periodic fee payable by the professional body supervisor is to be calculated.

[Note: Regulation 27 of the OPBAS Regulations]

FEES App 2.3.9

1A professional body supervisor must send to the FCA in writing the information required under FEES App 2.3.8 on or before 31 October preceding the relevant fee year2.

[Note: Regulation 27 of the OPBAS Regulations]

FEES App 2.3.10

1If a professional body supervisor fails to send to the FCA the information required under FEES App 2.3.8 by the date specified in FEES Appendix 2.3.92, the FCA may use the information provided by the professional body supervisor under Regulation 51 and Schedule 4 to the MLR or Regulation 272 of the OPBAS Regulations as the basis for calculating fees payable by the professional body supervisor.

[Note: Regulation 27 of the OPBAS Regulations]

FEES App 2.3.11 G

1The FCA will use the information referred to in FEES App 2.3.8 only for the purpose of calculating professional body supervisors’ fees. Therefore, the definition of ‘supervised individuals’ set out in FEES Appendix 2 Annex 2 applies for the purpose of calculating those fees only.

FEES App 2 Annex 1 Application fee imposed under Regulation 27 of the OPBAS Regulations

1[Note: Regulation 27 of the OPBAS Regulations]

1Part 1: Application fees payable to be included in Schedule 1 to the Money Laundering Regulations

Transaction

Amount payable (£)

Application to be added to the list of professional bodies in Schedule 1 to the MLR

£5,000

Part 2: Method of payment of application fees

Payment method

Additional amount or discount applicable

Electronic credit transfer

None

FEES App 2 Annex 2 Periodic fees imposed under Regulation 27 of the OPBAS Regulations: tariff base, review date, tariff rates

1[Note: Regulation 27 of the OPBAS Regulations]

1Part 1

This table sets out the tariff base for the professional body supervisor fee-block. The tariff base in this Part is the means by which the FCA calculates the annual periodic fees payable by a professional body supervisor to the FCA.

D.2 Professional body supervisors

Supervised individuals

Professional bodies listed in Schedule 1 to the Money Laundering Regulations.

The total of:

(a) the number of all beneficial owners, officers and managers of all supervised firms that are relevant persons; plus

(b) the number of all supervised sole practitioners who are relevant persons.

Where a relevant person is supervised under the MLR by more than one professional body supervisor and the professional body supervisors concerned have agreed which one of them will include the number specified in (a) or (b) above in its count of ‘supervised individuals’, the remaining professional body supervisor(s) may exclude this information from their count of ‘supervised individuals’.

Part 2

This table sets out the review date for a professional body supervisor’s fees. A professional body supervisor is required to send to the FCA the information in Part 1 of this Annex as at the review date set out below, as soon as reasonably practicable, and in any event by5 the date shown in FEES App 2.3.9 and/or any relevant transitional provision5.

D.2 Professional body supervisors

The most recent5 number of supervised individuals (calculated in accordance with Part 1) during the twelve months ending 5 April5 before the relevant fee year.

Part 3

This table sets out the tariff rates applicable to professional body supervisors.

Fee payable in relation to 2021/22 7

6 3

Amount payable 4

(£) 3

Minimum fee, payable by all professional body supervisors subject to the OPBAS Regulations.

£5000 7

6

Variable fee, payable by professional body supervisors where the number of supervised individuals is 6,000 or more.

£32.83 7multiplied by the total number of supervised individuals in excess of the threshold of 6,00025.

[See Note]

5 4 3 6

[Note: reference to “5the number of supervised individuals”5 is to those supervised individuals calculated in accordance with Part 1.5]

FEES App 2 Annex 3 Glossary of definitions

G

1The following words or terms used in FEES Appendix 2 appearing in bold (other than headings and titles) have the meanings given to them below.

1 Expression

Definition

beneficial owner

has the meaning given in Regulation 3 of the MLR.

day

a period of 24 hours beginning at midnight.

FCA

Financial Conduct Authority.

fee year

1 April to 31 March inclusive.

firm

has the meaning given in Regulation 3 of the MLR.

manager

has the meaning given in Regulation 3 of the MLR.

MLR

the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (SI 2017/692).

month

(in accordance with the Interpretation Act 1978) a calendar month.

officer

has the meaning given in Regulation 3 of the MLR.

OPBAS Regulations

the Oversight of Professional Body Anti-Money Laundering and Counter Terrorist Financing Supervision Regulations 2017 (SI 2017/1301).

person

(in accordance with the Interpretation Act 1978) any person, including a body of persons corporate or unincorporate (that is, a natural person, a legal person and, for example, a partnership).

professional body supervisor

a professional body listed in Schedule 1 to the MLR.

relevant person

has the meaning given in Regulation 3 of the MLR.

supervised

is subject to supervision by a professional body supervisor in its capacity as supervisory authority within the meaning of Regulation 7(1)(b) of the MLR.