REC 7.1 Introduction

Application

REC 7.1.1 R 17/01/2002

1This chapter applies to every recognised body and to every applicant for recognition as a recognised body under Part XVIII of the Act (Recognised investment exchanges and clearing houses).

Purpose

REC 7.1.2 G 17/01/2002

The purpose of this chapter is to set out the requirements on recognised bodies and applicants for recognition as recognised bodies to pay fees which (with other fee requirements in the Handbook) provide the funding for the FSA's functions.

Background

REC 7.1.3 G 17/01/2002

GEN 3 (FSA Fees - General Provisions) applies to fees required by this chapter, and explains how the FSA sets its fees.

REC 7.1.4 G 01/04/2004

Most of the detail of the fees payable by recognised bodies is set out in REC 7 Annex 1. The provisions of the annex will vary from one financial year to another. Accordingly a new annex will come into force, following consultation, for each financial year.2

REC 7.1.5 G 01/06/2004

The fee applicable to a recognised body reflects the estimated cost to the FSA of discharging its functions in relation to that recognised body. Fees are set for recognised bodies on an individual basis.3

REC 7.1.6 G 17/01/2002

Application fees are calculated from a tariff structure intended to reflect the estimated cost of processing an application of that type and complexity.

REC 7.1.7 G 17/01/2002

A recognised body may also have obligations to pay fees to the FSA under other rules or arising from legislation other than the Act. For example, a recognised body may have an obligation to pay a fee as an approved operator of a relevant system under the Uncertificated Securities Regulations 1995.

REC 7.1.8 G 17/01/2002

The FSA does not specify a method of payment for recognised bodies or applicants. However the FSA expects that a recognised body or an applicant will generally pay its fee by electronic credit transfer.

REC 7.2 [to follow]

REC 7.2.1 R 17/01/2002

REC 7.3 Application fees

Amount

REC 7.3.1 R 01/04/2004

An applicant for recognition as a UK recognised body under section 287 or section 288 of the Act must pay to the FSA in full and without any deduction the application fee specified for that type of application in part 1 of REC 7 Annex 2 R1.

REC 7.3.2 R 01/04/2004

An applicant for recognition as an overseas recognised body under section 287 or section 288 and section 292 of the Act must pay to the FSA in full and without any deduction the application fee specified in part 2 of REC 7 Annex 2 R1.

Due dates

REC 7.3.3 R 17/01/2002

An applicant must pay the application fee on or before the date on which the application is made.

REC 7.3.4 G 17/01/2002

The FSA will not consider an application for recognition until the application fee has been paid.

REC 7 Annex 1 Periodic fees payable for the period from 1 April 2004 to 31 March 2005

R 21/06/2001

In this Annex:

- the term recognised body includes a body which was a recognised investment exchange or a recognised clearing house recognised under the Financial Services Act 1986 and which is a recognised body as a result of Regulation 9 of the Recognition Requirements Regulations; and

- the term recognition order includes a recognition order made by the FSA under section 37 or section 39 of the Financial Services Act 1986 or a recognition order made by the Treasury under section 40 of the Financial Services Act 1986.

Part 1 - Periodic fees for UK recognised bodies

Name of UK recognised body	Amount payable	Due date
CRESTCo Limited	£290,000	30 April 2004
CRESTCo Limited	£298,000	1 September 2004
The International Petroleum Exchange of London Limited	£162,500	30 April 2004
The International Petroleum Exchange of London Limited	£169,500	1 September 2004
LIFFE Administration and Management	£330,000	30 April 2004
LIFFE Administration and Management	£392,000	1 September 2004
LCH.Clearnet Limited	£285,000	30 April 2004
LCH.Clearnet Limited	£334,000	1 September 2004
The London Metal Exchange Limited	£240,000	30 April 2004
The London Metal Exchange Limited	£195,000	1 September 2004
The London Stock Exchange plc	£355,000	30 April 2004
The London Stock Exchange plc	£350,000	1 September 2004
OM London Exchange Limited	£87,500	30 April 2004
OM London Exchange Limited	£101,500	1 September 2004
virt-x plc	£112,500	30 April 2004
virt-x plc	£121,500	1 September 2004
EDX	£75,000	30 April 2004
EDX	£115,000	1 September 2004
Any other UK recognised investment exchange recognised as such by a recognition order made in the period	£150,000	30 days after the date on which the recognition order is made
Any other UK recognised clearing house recognised as such by a recognition order made in the period	£250,000	30 days after the date on which the recognition order is made

Part 2 - Periodic fees for overseas recognised bodies

Name of overseas recognised body	Amount payable	Due date
Cantor Financial Futures Exchange	£10,000	1 July 2004
The Chicago Mercantile Exchange	£10,000	1 July 2004
Chicago Board of Trade	£10,000	1 July 2004
EUREX Zurich	£10,000	1 July 2004
NASDAQ	£10,000	1 July 2004
NQLX	£10,000	1 July 2004
New York Mercantile Exchange	£10,000	1 July 2004
Swiss Exchange	£10,000	1 July 2004
Sydney Futures Exchange	£10,000	1 July 2004
Warenterminborse Hannover	£10,000	1 July 2004
Any other overseas investment exchange recognised as such by a recognition order made in the period	£10,000	30 days after the date on which the recognition order is made
Any other overseas clearing house recognised as such by a recognition order made in the period	£35,000	30 days after the date on which the recognition order is made 5 4 3 2 1

REC 7 Annex 2 Application fees payable