SIFA 18.5 Further Information

Firms should also be aware that in January of each year we produce a consultation paper indicating the proposed fee rates for the coming financial year (1 April - 31 March). This paper now includes levy consultations for the FOS and FSCS. The FSA Board makes the final fee rates for the financial year in May (with the exception of application fee rates, which are made in March, before the beginning of the financial year). Small firms should expect to receive a periodic fee invoice in June/July each year.

In June each year, we update our Consolidated Policy Statement on our fee-raising arrangements. This document provides further detail on our fee policy, and you will find it in the 'FSA Library' section of our website.

We currently send one bill to firms covering both our fees and the FOS and FSCS levies. We are working in partnership with the FOS and FSCS on plans that will allow firms to pay their fees by instalments. In our Consultation Paper CP05/2 we requested feedback from the industry to gauge the level of demand for a facility whereby firms could pay by instalments. We received a positive response from firms and trade associations. A working group of representatives from the FSA, FSCS and the Small Business Practitioner Panel has taken forward this initiative after meeting with interested trade associations and credit providers. In CP05/2 we are also providing a clearer indication, through examples, of what firms' fees and levies will be - so firms can budget more effectively.

We are helping minimum fee-payers by implementing minimum fee discounts. Firms pay only 50% of the minimum fee where they hold permissions for activities they carry out as a minimal part of their business. This means that a firm will not pay high fees if it does a small amount of business in a fee-block in addition to its main source of business.