SUP 20.4 Modifications

A firm which becomes authorised, or whose permission is extended, during the course of the financial year must pay a fee which is calculated by:

1. (1)

   identifying each of the tariffs set out in Part 1 of SUP 20 Annex 2 for the relevant financial year that apply to the firm only after the permission is received or extended, but ignoring:

   1. (a)

      the A.13 activity group if, before the variation, the A.12 activity group applied to the firm's business; or

   2. (b)

      the A.12 activity group if, before the variation, the A.13 activity group applied to the firm's business;

2. (2)

   calculating the amount for each of those tariffs which is the higher of:

   1. (a)

      the minimum fee specified for the tariff; and

   2. (b)

      the result of applying the tariff to the projected valuation, for its first year (as provided to the FSA in the course of the firm's application), of the business to which the tariff relates (or, where relevant, the number of approved persons immediately after the permission is given);

3. (3)

   adding together the amounts calculated under (2); and

4. (4)

   modifying the result as indicated by SUP 20.4.6 R.32

A firm must pay any sum required under within 30 days of the receipt or extension of the permission, or if later the due date specified under SUP 20.2.7 R.

For an incoming EEA firm or an incoming Treaty firm, the calculation required by SUP 20.2.4 R is modified as follows:

1. (1)

   the tariffs set out in Part 1 of SUP 20 Annex 2 are applied only to the regulated activities of the firm which are carried on in the United Kingdom; and

2. (2)

   those tariffs are modified in accordance with Part 3 of SUP 20 Annex 2.2

For an incoming EEA firm or an incoming Treaty firm, the information required under SUP 20.3 (Information on which fees calculated) is limited to the regulated activities of the firm which are carried on in the United Kingdom.

In relation to an incoming EEA firm or an incoming Treaty firm the modification provisions of SUP 20.4.1 G to SUP 20.4.6 R inclusive apply only in relation to the relevant regulated activity of the firm which are passported activities or Treaty activities and which are carried on in the United Kingdom.

1. (1)

   If:

   1. (a)

      a firm makes an application to vary its permission (by reducing its scope), or cancel it, in the way set out in SUP 20.4.4 R (3) (Variation of permission) and 6.4.5 (Cancellation of permission); and

   2. (b)

      the firm makes the application referred to in (a) before the start of the period to which the fee relates;

   SUP 20.2.1 R applies to the firm as if the relevant variation or cancellation of the firm's permission took effect immediately before the start of the period to which the fee relates.

2. (2)

   But (1) does not apply if, due to the continuing nature of the business, the variation or cancellation is not to take effect within three months of the start of the period to which the fee relates.1

1. (1)

   This rule applies if a firm (A) acquires all or a part of the business of another firm (B), whether by merger, acquisition of goodwill or otherwise, in relation to which a periodic fee would have been payable by B.

2. (2)

   If, before the date on which A acquires the business, B had paid any periodic fee payable for the period in which the acquisition occurred, SUP 20.4.1 G to SUP 20.4.6 R do not apply to A in relation to the business acquired from B.

3. (3)

   If the acquisition occurs after the valuation date applicable to the business which A acquired from B, for the period following that in which the acquisition occurred, SUP 20.2.1 R applies to A, in relation to that following period, as if the acquisition had occurred immediately before the relevant valuation date.1

1. (1)

   4A firm (other than a firm in (2) or a credit union) in more than one fee block must pay at least 50% of the total minimum fee payable in any fee block in which it is a minimum fee payer.

2. (2)

   A firm (other than a credit union) liable to pay only minimum fees in each fee block it is in must pay 100% of the highest total minimum fee payable within any one fee block and must pay at least 50% of the total minimum fee payable in any other fee blocks in which it is a minimum fee payer.

3. (3)

   A credit union in more than one fee block must pay at least 50% of the total minimum fee payable in any fee block, other than fee block A1, in which they are a minimum fee payer.