FEES TP 20 Transitional provisions relating to the Temporary Permissions regime for Claims Management Companies, taking effect on 1 January 2019

Periodic fee transitional provisions

20.1

FEES TP 20

G

(1) This transitional provision applies to claims management companies.

(2) Claims management company is defined in the Glossary as a person carrying on a regulated claims management activity in Great Britain.

(3) Regulated claims management activity is in turn defined as comprising various individual regulated activities which are defined in the Glossary by reference to the regulated activities in articles 89G to 89M of the Regulated Activities Order. All of the Glossary definitions above come into force on 1 January 2019.

(4) The regulated activities in articles 89G to 89M of the Regulated Activities Order were added to the Regulated Activities Order by the Claims Management Order. That Order comes into force for most purposes on 1 April 2019. However, it came into force on 29 November 2018 for various purposes including:

(a) for the purpose of enabling the FCA to make rules, give guidance, impose requirements, make directions, and approve rules;

(b) for the purpose of enabling the schemeoperator to do various things including making rules and standard terms.

(5) That means that, for the purposes of the definition of claims management company and the related Glossary definitions (including the definitions of regulated claims management activity and the related regulated activities) in this instrument, the references to the Regulated Activities Order are references to that Order as amended by the Claims Management Order.

1 January 2019

1 January 2019

20.2

FEES 4 Annex 1A

R

Claims management companies registering for temporary permission must pay the periodic fee for the 2019/20 year within 14 days of the date of the invoice, which will be issued following registration. The periodic fee for 2019/20 will be calculated from the firm’s annual turnover.

“Turnover” means the sum of the amounts paid to, or received by, a claims management company in respect of regulated claims management activities, including:

(a) charges, commission, the share of any compensation, fees and subscriptions;

(b) the monetary value of any services received by the claim management company where it makes no payment for those services or where the payment received is worth less than the monetary value of the services; and

(c) the monetary value of any advertising in respect of the claims management company that it has not paid for out of funds referred to in sub-paragraphs (a) and (b). “Annual turnover” means:

(d) the claims management company’s turnover for the 12 months to 30 November 2017; or

(e) if the business did not trade for the full 12 months to 30 November 2017, the estimated turnover for the 12 months to 30 November 2018; or

(f) where the application for authorisation by the Claims Management Regulator was made on or after 30 November 2017, the estimated turnover for the 12 months to 30 November 2018.

Firms must also notify the FCA of any turnover arising from business in Scotland, or business conducted under section 75 of the CCA.

1 January 2019

1 January 2019

Transitional provision for FOS general levy

20.3

FEES 5.7.1

R

Claims management companies applying for authorisation for the 2019/20 financial year must pay the FOSgeneral levy on or before the later of 1 April 2019 and 30 calendar days after the date when the invoice is issued by the FCA. The general levy for claims management companies will be calculated at £50 plus £3.00 per £1,000 of annual income.

“Income” is defined in FEES 5 Annex 4R and means the sum of the amounts paid to, or received by, a claims management company in respect of regulated claims management activities, including:

(a) charges, commission, the share of any compensation, fees and subscriptions;

(b) the monetary value of any services received by the claims management company where it makes no payment for those services or where the payment received is worth less than the monetary value of the services; and

(c) the monetary value of any advertising in respect of the claims management company that it has not paid for out of funds referred to in sub-paragraphs (a) and (b). “Annual income” means:

(d) the claims management company’s turnover for the 12 months to 30 November 2017; or

(e) if the business did not trade for the full 12 months to 30 November 2017, the estimated turnover for the 12 months to 30 November 2018; or

(f) where the application for authorisation by the Claims Management Regulator was made on or after 30 November 2017, the estimated turnover for the 12 months to 30 November 2018.

Firms must also notify the FCA of any turnover arising from business in Scotland, or business conducted under section 75 of the CCA.

1 January 2019

1 January 2019

Joining the Financial Ombudsman Service

20.4

FEES 5.8.1

R

For claims management companies applying for authorisation in the 2018/19 financial year, this rule does not apply to those firms which have paid in full upon registration but are not authorised until part way through the financial year.

1 January 2019

1 January 2019