FEES TP 3 Transitional provisions relating to changes to the FSCS levy arrangements taking effect in 2010/11

13.1

Effect of the tariff base changes made in 2008 in relation to the financial year 2010/11 before that date

3.1.1

[FCA] [PRA]

R

The amendments made to FEES 6 and to FEES TP by Part 4 of Annex B to the Financial Services Compensation Scheme (Amendment of Tariff Measures and Other Levy Rules) Instrument 2008 have effect before 1 April 2010 for the purpose of the supply of information under FEES 6.5.13 R in relation to the FSCS's financial year beginning on 1 April 2010.

13.2

Transitional requirements relating to firms in run off

3.2.1

[PRA]

R

This rule adjusts the calculation of the tariff base for sub-class B1 (General insurance providers) and sub-class C1 (Life and pensions providers) for the purposes of the FSCS's financial year beginning on 1 April 2010 and for subsequent periods. It applies if the firm is in run-off and has been in run-off since 1 November 2008.

3.2.2

[PRA]

R

The whole of the levy is calculated by reference to relevant net premium income instead of being split 75:25 between relevant net premium income and eligible gross technical liabilities or mathematical reserves.

3.2.3

[PRA]

R

A firm is in run-off for these purposes if it has ceased to effect new contracts of insurance, its permission for effecting contracts of insurance has been cancelled, its exclusive remaining business is administering its remaining insurance liabilities and, if it is required to supply one, it has supplied a run-off plan under SUP App 2.8.1 R.

13.3

Treatment of pure protection fees in 2010/11

3.3.1

[FCA]

R

This rule adjusts the calculation of the tariff base for sub-class C2 (Life and pensions intermediation) for the purposes of the FSCS's financial year beginning on 1 April 2010.

3.3.2

[FCA]

R

If the only activities that a firm carries out in respect of the relevant period that fall into sub-class C2 are in relation to pure protection contracts the firm must exclude all income relating to those activities from the calculation of its tariff base for that sub-class.

3.3.3

[FCA]

R

This rule does not apply to a firm if its annual eligible income for the relevant period in relation to pure protection contracts equals or exceeds £75,000.