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  3. Point in time
    2005-10-20

REC 7.1 Introduction

Application

REC 7.1.1 R

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

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

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

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

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

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

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

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

.

REC 7.3 Application fees

Amount

REC 7.3.1 R

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

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

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

REC 7.3.4 G

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

REC 7 Annex 1 6Fees payable in relation to the period from 1 April 2005 to 31 March 20066

R

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

£294,000

30 April 2005

£271,000

1 September 2005

The International Petroleum Exchange of London Limited

£166,000

30 April 2005

£159,500

1 September 2005

LIFFE Administration and Management

£361,000

30 April 2005

£439,000

1 September 2005

LCH.Clearnet Limited

£309,500

30 April 2005

£395,500

1 September 2005

The London Metal Exchange Limited

£217,500

30 April 2005

£242,500

1 September 2005

London Stock Exchange plc

£352,500

30 April 2005

£382,500

1 September 2005

virt-x Exchange Ltd

£117,000

30 April 2005

£93,000

1 September 2005

EDX London Ltd

£95,000

30 April 2005

£65,000

1 September 2005

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

7

Name of overseas recognised body

Amount payable

Due date

Cantor Financial Futures Exchange

£10,000

1 July 2005

The Chicago Mercantile Exchange

£10,000

1 July 2005

Chicago Board of Trade

£10,000

1 July 2005

EUREX (Zurich)

£10,000

1 July 2005

National Association of Securities and Dealers Automated Quotations (NASDAQ)

£10,000

1 July 2005

NQLX LLC

£10,000

1 July 2005

New York Mercantile Exchange Inc.

£10,000

1 July 2005

The Swiss Stock Exchange

£10,000

1 July 2005

Sydney Futures Exchange Limited

£10,000

1 July 2005

Warenterminborse Hannover

£10,000

1 July 2005

US Futures Exchange LLC

£10,000

1 July 2005

SIS x-clear AG

£35,000

30 days after the date on which the invoice is issued by the FSA 7

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

REC 7 Annex 2 Application fees payable

R

Description of applicant

Amount payable

Due date

Applicant for recognition as a UK RIE

£100,000

Date the application is made

Applicant for recognition as a UK RCH

£100,000

Date the application is made

Additional fees for applicant who proposes to:

- act as a central counterparty

£25,000

Date the application is made

- offer safeguarding and administration services

£25,000

Date the application is made

- use substantially new and untested information technology systems in the performance of its relevant functions

£25,000

Date the application is made

Description of applicant

Amount payable

Due date

Applicant for recognition as a recognised overseas investment exchange

£50,000

Date the application is made

Applicant for recognition as a recognised overseas clearing house

£50,000

Date the application is made

Additional fees for applicant who proposes to:

- act as a central counterparty

£25,000

Date the application is made

- offer safeguarding and administration services

£25,000

Date the application is made1