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  4. Point in time
    2005-12-31

SUP 20.1 Introduction

Application

SUP 20.1.1 R

1This chapter (other than SUP 20.6 (Periodic fees for certificates granted under article 54 of the Regulated Activities Order )) applies to every firm except:

  1. (1)

    an ICVC;

  2. (2)

    a UCITS qualifier.

SUP 20.1.2 R

SUP 20.6 (Periodic fees for certificates granted under article 54 of the Regulated Activities Order) applies to every person who holds a certificate issued by the FSA under article 54 of the Regulated Activities Order (Advice given in newspapers etc.).

Purpose

SUP 20.1.3 G

The purpose of this chapter is to set out the requirements on firms and others to pay periodic fees which provide the funding for the FSA's functions. It also sets out the requirement to pay transaction reporting fees in certain circumstances.

Background

SUP 20.1.4 G

GEN 3 (FSA Fees: General Provisions) applies to the fees required under this chapter, and gives further detail about how the FSA sets periodic fees.

SUP 20.1.5 G

Most of the detail of what periodic fees are payable by firms is set out in SUP 20 Annex 2. The provisions of the annex will vary from one financial year to another. Accordingly a fresh SUP 20 Annex 2 will come into force, following consultation, for each financial year. 2

SUP 20.1.6 G

These fees, which will normally be payable on an annual basis, will provide the majority of the funding required to enable the FSA to undertake its statutory functions. The amount payable by each firm will depend upon the category (or categories) of regulated activities it is engaged in (fee-blocks), and on the amount of business it conducts in each category (tariff base).

SUP 20.1.7 G

By basing fee blocks on categories of regulated activities, the FSA aims to minimise cross-sectoral subsidies. The fee-blocks and tariffs are identified in SUP 20 Annex 1, which also sets out the fees calculation for the relevant financial year.

SUP 20.1.8 G

The Society of Lloyd's, which has permission under section 315(2) of the Act (The Society: authorisation and permission), has its own fee block.

SUP 20.1.9 G

Incoming EEA firms and incoming Treaty firms receive a discount to reflect the reduced scope of the FSA's responsibilities in respect of them. The level of the discount varies from fee-block to fee-block, according to the division of responsibilities between the FSA and Home state regulators for firms in each fee-block - see SUP 20.4(Modifications).

SUP 20.1.10 G

Paragraph 17(2) of Schedule 1 to the Act prohibits the FSA from taking account of penalties received when setting its periodic and other fees. Accordingly each SUP 20 Annex 2 will set the periodic fee without reference to the penalties received. The FSA will allocate the penalties by way of a permitted deduction specified in SUP 20 Annex 2 for the relevant year. The FSA normally expects to allocate those deductions so that they apply to the fee blocks within which the firms paying penalties fall. 2

SUP 20.1.11 G

Fees are calculated individually for each firm, but they may be paid on a group basis, if the group so wishes.

SUP 20.2 Obligation to Pay Periodic Fees

Amount payable

SUP 20.2.1 R

A firm must pay to the FSA an amount equal to:

  1. (1)

    each periodic fee applicable to it; less

  2. (2)

    any deductions from the periodic fee specified in part 2 of SUP 20 Annex 2.1

SUP 20.2.2 R

A firm must not make any other deduction from the amount required under SUP 20.2.1 R.

SUP 20.2.3 G

A firm will be required to pay a periodic fee for every year during which it has a permission subject to any reductions or exemptions applicable under this chapter. The FSA will issue invoices to firms and expects to do so at least 30 days before the dates on which payments will fall due under SUP 20.2.7 R.1

Calculation of periodic fee

SUP 20.2.4 R

The periodic fee referred to in SUP 20.2.1 R is (except in relation to the Society) calculated as follows:

  1. (1)

    identify each of the tariffs set out in part 1 of SUP 20 Annex 2 which apply to the business of the firm for the period specified in that annex;

  2. (2)

    for each of those tariffs, calculate the sum payable in relation to the business of the firm for that period;

  3. (3)

    add together the amounts calculated under (2);

  4. (4)

    apply any applicable payment charge or discount specified in SUP 20.2.7A R, provided that:

    1. (a)

      for payment by direct debit, successful collection of the amount due is made at the first attempt by the FSA; or

    2. (b)

      for payment by credit transfer, the amount due is received by the FSA on or before the due date.21

SUP 20.2.5 G

For a firm which becomes authorised or extends its permission during the course of a financial year this periodic fee is modified (seeSUP 20.4 (Modifications)). The periodic fee is also modified for incoming EEA firms and for incoming Treaty firms seeSUP 20.4.7 G).

Amount payable by the Society of Lloyd's

SUP 20.2.6 R

The periodic fee referred to in SUP 20.2.1 R in relation to the Society is specified against its name in SUP 20 Annex 2.1

Time and method for payment

SUP 20.2.7 R
  1. (1)

    The firm must pay the total amount due under SUP 20.2.1 R, using one of the payment methods specified in SUP 20.2.7A R.

  2. (2)

    If the firm's periodic fee for the previous financial year was at least £50,000, the firm must pay:

    1. (a)

      an amount equal to 50% of the periodic fee payable for the previous year, by 30 April in the financial year to which the sum due under SUP 20.2.1 R relates; and

    2. (b)

      the balance of the periodic fee due for the current financial year by 1 September in the financial year to which that sum relates.

  3. (3)

    If the firm's periodic fee for the previous financial year was less than ?50,000, the firm must pay the periodic fee due in full by 1 July in the financial year to which that sum relates.

  4. (4)

    If a firm has applied to cancel its Part IV permission in the way set out in 6.4.5 (Cancellation of permission), then (2) and (3) do not apply but it must pay the total amount due when the application is made.

  5. (5)

    If the FSA has exercised its own-initiative powers to cancel a firm'sPart IV permission in the way set out in ENF 5 (Cancellation of Part IV permission on the FSA's own initiative), then (2) and (3) do not apply but the firm must pay the total amount due immediately before the cancellation becomes effective.21

SUP 20.2.7A R

Table: specified payment methods

This table belongs to SUP 20.2.4 R and SUP 20.2.7 R

Payment method

Additional amount or discount applicable

Direct debit

Discount of £20

Credit transfer (BACS/CHAPS)

Discount of £10

Cheque

None

Switch

None

Credit card (Visa/Mastercard only)

Additional 2% of sum paid 1

Groups of firms

SUP 20.2.8 R

A firm which is a member of a group may pay all of the amounts due from other firms in the same group under SUP 20.2.1 R, if:

  1. (1)

    it notifies the FSA in writing the name of each other firm within the group for which it will pay; and

  2. (2)

    it pays the fees, in accordance with this chapter, as a single amount as if that were the amount required under SUP 20.2.1 R from the firm.

SUP 20.2.9 G

A notification under SUP 20.2.8 R (1) should be made in accordance with SUP 15.7 (Form and method of notification).

SUP 20.2.10 G

If the payment made does not satisfy in full the periodic fees payable by all of the members of the group notified to the FSA under SUP 20.2.8 R, the FSA will apply the sum received among the firms which have been identified in the notification given under SUP 20.2.8 R (1) in proportion to the amounts due from them. Each firm will remain responsible for the payment of the outstanding balance attributable to it.

SUP 20.2.11 G

If a firm pays its fees through an agent outside the scope of SUP 20.2.8 R, it should ensure that the FSA is informed that the sum being paid is for that firm's periodic fees.

SUP 20.3 Information on which Fees are calculated

SUP 20.3.1 R

A firm (other than the Society) must notify to the FSA the value (as at the valuation date specified in Part 3 of SUP 20 Annex 1) of each element of business on which the periodic fee payable by the firm is to be calculated. 1

SUP 20.3.2 R

A firm (other than the Society) must send to the FSA in writing the information required under SUP 20.3.1 R as soon as reasonably practicable, and in any event within two months, after the date specified as the valuation date in Part 3 of SUP 20 Annex 1.1

SUP 20.3.3 R

To the extent that a firm has provided the information required by this section to the FSA as part of its compliance with another provision of the Handbook, it is deemed to have complied with the provisions of this section.

SUP 20.3.4 G

In most cases a firm will provide the information required by this section as part of its compliance with other provisions of SUP. To the extent that the FSA does not obtain sufficient, or sufficiently detailed, information it may seek this by using its general information gathering powers (see SUP 2 (Information gathering by the FSA on its own initiative).

SUP 20.3.5 G

These information requirements are modified for incoming EEA firms and for incoming Treaty firms (see SUP 20.4.8 R).

SUP 20.4 Modifications

Modification for firms with new or extended permissions

SUP 20.4.1 G

A firm which becomes authorised during the course of a financial year will be required to pay a proportion of the periodic fee which reflects the proportion of the year for which it will have a permission.

SUP 20.4.2 G

Similarly a firm which extends its permission so that its business then falls within additional fee blocks will be required to pay a further periodic fee under this section for those additional fee blocks, but discounted to reflect the proportion of the year for which the firm has the extended permission.

SUP 20.4.3 G

These provisions apply (with some changes) to incoming EEA firms and incoming Treaty firms - see SUP 20.4.10 R.

SUP 20.4.4 R

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

SUP 20.4.5 R

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.

SUP 20.4.6 R

Table: Modification for additional fee

This table belongs to SUP 20.4.4 R

Quarter in which the permission is received or extended

Proportion payable

1 April to 30 June inclusive

100%

1 July to 30 September inclusive

75%

1 October to 31 December inclusive

50%

1 January to 31 March inclusive

25%

Modifications for incoming EEA firms and incoming Treaty firms

SUP 20.4.7 G

The FSA recognises that its responsibilities in respect of an incoming EEA firm or of an incoming Treaty firm are reduced compared with a firm which is incorporated in the United Kingdom. Accordingly the periodic fees which would otherwise be applicable to incoming EEA firms and incoming Treaty firms are reduced.

SUP 20.4.8 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

SUP 20.4.9 R

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.

SUP 20.4.10 R

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.

Firms cancelling or reducing the scope of their permission

SUP 20.4.11 G

The FSA will not refund periodic fees if, after the start of the period to which they relate, a firm cancels its permission, or reduces its permission so that it then falls out of fee-block previously applied to it (but see GEN 3 (Relieving Provisions)).1

SUP 20.4.12 R
  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'spermission 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

SUP 20.4.12A G

Where a firm has applied to cancel its Part IV permission, or the FSA has exercised its own-initiative powers to cancel a firm'sPart IV permission, the due dates for payment of periodic fees are modified by SUP 20.2.7 R (4) and SUP 20.2.7 R (5) respectively.3

Firms acquiring businesses from other firms

SUP 20.4.13 R
  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

Minimum fee discount4

SUP 20.4.14 R
  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.

SUP 20.5 Transaction reporting fees

SUP 20.5.1 G

Firms which are required to report transactions under SUP 17 (Transaction reporting) may, in certain circumstances, use the FSA's Direct Reporting System or the FSA's Transaction Reporting System2 (see SUP 17).

SUP 20.5.2 G

The provision of this facility by the FSA incurs costs to it. Those costs depend upon the amount which the facility is used. Accordingly the income which the FSA receives from these transaction reporting fees will be set and accounted for separately from the fee block tariffs set out in SUP 20 Annex 3 R.1

SUP 20.5.3 R

A firm which reports its reportable transactions to the FSA using the FSA's Direct Reporting System or the FSA's Transaction Reporting System2 (see SUP 17) must pay the fees specified in Part 1 of SUP 20 Annex 3 R.1

SUP 20.6 Periodic fees for certificates under article 54 of the Regulated Activities Order

SUP 20.6.1 R

A person who holds a certificate under article 54 of the Regulated Activities Order must pay to the FSA each periodic fee specified in Part 2 of SUP 20 Annex 3 R applicable to him.1

SUP 20.6.2 R

A person must not make any deductions from the amount required under SUP 20.6.1 R.

SUP 20.6.3 R

The periodic fee is payable in respect of each period of one year (or any part of such period) during which the person holds the certificate.

Modifications for new holders

SUP 20.6.4 R

If a certificate is issued to a person under article 54 of the Regulated Activities Order during the course of a year, the periodic fee payable under SUP 20.6.3 R for that year is the amount specified in Part 2 of SUP 20 Annex 3 R modified in accordance with Table SUP 20.6.5 R.2

SUP 20.6.5 R

Table: Modification of periodic fees for certificates This table belongs to SUP 20.6.4 R.

Quarter in which the certificate is granted or extended

Proportion payable

1 April to 30 June inclusive

100%

1 July to 30 September inclusive

75%

1 October to 31 December inclusive

50%

1 January to 31 March inclusive

25%

Time and method for payment

SUP 20.6.6 R

Each periodic fee must be paid to the FSA on or before:

  1. (1)

    30 April in that year; or

  2. (2)

    If the certificate is issued during that year, the earlier of 30 days after the certificate is granted and the following 30 April.

SUP 20.6.7 R

The amount due must be paid using one of the payment methods specified in SUP 20.2.7A R.2

SUP 20.6.8 G

The FSA will issue invoices to the holders of certificates and expects to do so at least 30 days before the dates on which payments fall due.

SUP 20.7 Waiver application guidance fees regarding the Basel Capital Accord1

SUP 20.7.1 R
  1. (1)

    A firm submitting a first application for guidance on the availability of a waiver or concession in connection with future rules implementing the revised Basel Capital Accord (including any amendments), must pay to the FSA a fee applicable to it as specified in SUP 20 Annex 4 R.

  2. (2)

    A firm submitting a second application for guidance described in (1) within 12 months of the first application made in accordance with (1) must pay 50% of the fee applicable to it under SUP 20 Annex 4 R, but only in respect of that second application.

  3. (3)

    Any payment under (1) or (2) must be made on or before the date on which the application is made, in full and without any deduction.

SUP 20.7.2 G

The FSA's power to charge in respect of guidance is derived from section 157(4)(c) of the Act. An application for guidance will not be considered by the FSA until the fee has been paid and the fee is non-refundable.

SUP 20.7.3 G

A firm submitting third and subsequent applications for guidance described in SUP 20.7.1 R will be required to pay at the full rates specified in SUP 20 Annex 4 R in respect of those applications.

SUP 20 Annex 1

R

Activity groups, tariff bases and valuation dates applicable

Part 1

This table shows how the regulated activities for which a firm has permission are linked to activity groups ('fee-blocks'). A firm can use the table to identify which fee-blocks it falls into based on its permission.
8

Activity group

Fee payer falls in the activity group if

A.1 Deposit acceptors

its permission includes accepting deposits or issuing e-money; BUT DOES NOT include either of the following:

•effectingcontracts of insurance;

•carrying out contracts of insurance.

A.2 Mortgage lenders and administrators

its permission includes one or more of the following:

•entering into a regulated mortgage contract ; or

• administering a regulated mortgage contract; or

• agreeing to carry on a regulated activity which is within either of the above.

A.3 Insurers - general

its permission includes one or more of the following:

•effectingcontracts of insurance;

•carrying out contracts of insurance;

in respect of specified investments that are:

• general insurance contracts; or

• long-term insurance contracts other than life policies.

A.4 Insurers - life

its permission includes one or more of the following:

•effectingcontracts of insurance;

•carrying out contracts of insurance;

in respect of specified investments including life policies;

• entering as provider into a funeral plan contract.

A.5 Managing agents at Lloyd's

its permission includes managing the underwriting capacity of a Lloyd's syndicate as a managing agent at Lloyd's.

A.6 The Society of Lloyd's

it is the Society of Lloyd's.

Note for authorised professional firms:

Generally, for fee-blocks A.7 to A.19 below, only those regulated activities that are not limited to non-mainstream regulated activities should be taken into account in determining which fee-block(s) fee-payers belong to for the purpose of charging periodic fees.

However, in the case that all the regulated activity within a firmpermission are limited to non-mainstream regulated activities, then that firm's will be allocated to fee-block A.13 alone.

This does not prevent a fee being payable by an authorised professional firm under SUP 6.3.22 R where it applies to vary its Part IV permission such that it would normally be allocated to fee-block(s) other than A.13 if the variation was granted.

A.7 Fund managers

(1) its permission includes managing investments;

OR

(2) its permission includes

ONLY either one or both of:

• safeguarding and administering of investments (without arranging); and

• arranging safeguarding and administration of assets;

OR

(3) the firm is a venture capital firm.

Class (1) firms are subdivided into three classes:

• class (1)A, where the funds managed by the firm belong to one or more occupational pension schemes;

• class (1)B, where:

(a) the firm is not a class (1)A firm; and

(b) the firm's permission includes NEITHER of the following:

• safeguarding and administering of investments(without arranging);

• arranging safeguarding and administration of assets; and

(c) the firmEITHER:

• has a requirement that prohibits the firm from holding or controlling client money, or both; OR

• if it does not have such a requirement, only holds or controls client money (or both), arising from an agreement under which commission is rebated to a client; and

• class (1)C, where the firm is not within class (1)A or class (1)B.

A.8

Not applicable.

A.9 Operators, Trustees and Depositaries of collective investment schemes

(1) its permission:

(a) includes one or more of the following:

• establishing, operating or winding up a regulated collective investment scheme;

• establishing, operating or winding up an unregulated collective investment scheme;

• acting as trustee of an authorised unit trust scheme;

• acting as the depositary or sole director of an open-ended investment company;

AND

(b) PROVIDED the firm is NOT one of the following:

• a corporate finance advisory firm;

• a firm in which the above activities are limited to carrying out corporate finance business;

• a venture capital firm;

OR

(2) if the fee-payer has none of the regulated activities above within its permission, but ALL the remaining regulated activities in its permission are limited to carrying out trustee activities.

A.10 Firms dealing as principal

its permission includes dealing in investments as principal ;

BUT NOT if one or more of the following apply:

• the firm is acting exclusively as a matched principal broker;

• the above activity is limited either to acting as an operator of a collective investment scheme, or to carrying out trustee activities;

• the firm is a corporate finance advisory firm;

• the above activity is otherwise limited to carrying out corporate finance business;

- the firm is subject to a limitation to the effect that the firm , in carrying on this regulated activity, is limited to entering into transactions in a manner which, if the firm was an unauthorised person , would come within article 16 of the Regulated Activities Order (Dealing in contractually based investments);

• the above activity is limited to not acting as a market maker;

• the firm is an oil market participant, energy market participant or a local;

• its permission includes either:

• effectingcontracts of insurance; or

• carrying out contracts of insurance.

A.11

Not applicable.

A.12 Advisory arrangers, dealers or brokers (holding or controlling client money or assets, or both)

its permission:

(a) includes one or more of the following, in relation to one or more designated investments :

•dealing in investments as agent;

•arranging (bringing about) deals in investments;

•making arrangements with a view to transactions in investments;

•dealing as principal in investments where the activity is carried on as a matched principal broker, oil market participant, energy market participant or local;

•advising on investments (except pension transfers and pension opt-outs);

•providing basic advice on a stakeholder product;10

•advising on pension transfers and pension opt-outs;

•advising on syndicate participation at Lloyd's;

(b) BUT NONE of the following:

•effectingcontracts of insurance; or

•carrying out contracts of insurance;

AND

(c) CAN HAVE one or more of the following:

•safeguarding and administering of assets;

•arranging safeguarding and administration of assets;

• the ability to hold or control client money, or both:

• that is, there is no requirement which prohibits the firm from doing this; and

• provided that the client money in question does not only arise from an agreement under which commission is rebated to a client;

AND

(d) PROVIDED the fee-payer is NOT any of the following:

• a corporate finance advisory firm;

• a firm for whom all of the applicable activities above are otherwise limited to carrying out corporate finance business;

• a firm whose activities are limited to carrying out venture capital business;

• a firm whose activities are limited to acting as an operator of a regulated collective investment scheme;

• a firm activities;

• a firm whose activities are limited to carrying out trustee activities;

• a service company.

A.13 Advisory arrangers, dealers or brokers (not holding or controlling client money or assets, or both)

(1) it is an authorised professional firm and ALL the regulated activities in its permission are limited to non-mainstream regulated activities;

OR

(2) its permission:

(a) includes one or more of the following, in relation to one or more designated investments:

• dealing in investments as agent;

• arranging (bringing about) deals in investments;

• making arrangements with a view to transactions in investments;

• dealing as principal in investments where the activity is carried on as a matched principal broker, oil market participant, energy market participant or local;

•advising on investments (except pension transfers and pension opt-outs);

•providing basic advice on a stakeholder product;10

• advising on pension transfers and pension opt-outs;

• advising on syndicate participation at Lloyd's;

(b) BUT NONE of the following:

• effecting contracts of insurance;

• carrying out contracts of insurance;

• safeguarding and administration of assets;

• arranging safeguarding and administration of assets;

AND

(c) MUST EITHER, in connection with its designated investment business:8

• have a requirement that prohibits the firm from holding or controlling client money, or both;

OR

• if it does not have such a requirement , only holds or controls client money (or both), arising from an agreement under which commission is rebated to a client;

AND

(d) PROVIDED the fee-payer is NOT any of the following:

• a corporate finance advisory firm;

• a firm for whom all of the applicable activities above are otherwise limited to carrying out corporate finance business;

• a firm whose activities are limited to carrying out venture capital business;

• a firm whose activities are limited to acting as an operator of a regulated collective investment scheme;

• a firm whose activities are limited to carrying out trustee activities;

• a service company.

A.14 Corporate finance advisers

the firm is carrying on corporate finance businessPROVIDED the fee-payer is NOT a venture capital firm .

A.15

Not applicable.

A.16 Pensions review levy firms

it was liable to pay the Pensions Levy to PIA in 2001/2002.

A.17

Not applicable.

A.18 Mortgage lenders, advisers and arrangers

its permission includes one or more of the following:

• entering into a regulated mortgage contract; or

• arranging (bringing about) regulated mortgage contracts; or

• making arrangements with a view to regulated mortgage contracts; or

• advising on regulated mortgage contracts; or

• agreeing to carry on a regulated activity which is within any of the above.

A.19 General insurance mediation

its permission includes one or more of the following in relation to a non-investment insurance contract:

-dealing in investments as agent; or

• arranging (bringing about) deals in investments; or

• making arrangements with a view to transactions in investments; or

• assisting in the administration and performance of a contract of insurance; or

• advising on investments; or

• agreeing to carry on a regulated activity which is within any of the above.

B. Market operators

Firms that have been prescribed as an operator of a prescribed market under the Financial Services and Markets Act 2000 (Prescribed Markets and Qualifying Investments) Order 2001 (SI 2001/996).

B. Service companies

it is a service company.7654321

Part 2

This table indicates the tariff base for each fee-block. The tariff base is the means by which we measure the 'amount of business' conducted by a firm. Note that where the tariff base is the number of approved persons it may be that a particular firm has permission for relevant activities as described in Part 1 but the type of activity that the firm undertakes is not one requiring a person to be approved to undertake a relevant customer function (for example firms only giving basic advice on stakeholder products). In these circumstances, the firm will be required to pay a minimum fee only (see SUP 20 Annex 2 R Part 1).10
888

Activity group

Tariff-base

A.1

MODIFIED ELIGIBLE LIABILITIES

For banks:

Part 1:

Liabilities

In sterling:

£2 + £3 + £4 + £5A + £5B + £6B + £6C + £6D + £6E + £6F + £6G + £6H + £6J + £7B + £7C + £7D + £7E + £7F + £7G + £7H + £7J + £8 + £10 + 60% of £11A + £44

plus

In foreign currency, one-third of:

E2 + E3 + E4 + E5A + E5B + E6B + E6C + E6D + E6E + E6F + E6G + E6H + E6J + E7B + E7C + E7D + E7E + E7F + E7G + E7H + E7J + E8 + E10 + 60% of E11A + E44 + C2 + C3 + C4 + C5A + C5B + C6B + C6C + C6D + C6E + C6F + C6G + C6H + C6J + C7B + C7C + C7D + C7E + C7F + C7G + C7H + C7J + C8 + C10 + 60% of C11A: less

Assets

In sterling:

£21B + 60% of £22A + £23D + £23E + £23F + £30A + £30B + £31A + £31B + £32AA

plus

In foreign currency, one-third of:

E21B + 60% of E22A + E23D + E23E + E23F + E30A + E30B + E31A + E31B + E32AA + C21B + 60% of C22A + C23D + C23E + C23F + C30A + C30B + C31A + C31B + C32AA

Part 2: Non-resident office offset

The fee base is adjusted by deducting from the amount calculated in accordance with part 1 above, the Non-Resident Office Offset amount obtained by subtracting item 45D from item 45BA in the Form BT. The Non-Resident Office Offset amount, if it would otherwise have been a negative number, is zero.

Notes:

(1) All references in the above formula are to entries on Form BT (that is, the Balance Sheet Form completed to provide information required following the Banking Statistics Review 1997 and returned by banks to the Bank of England as required by the Bank of England Act 1998).

(2) 'E' refers to assets and liabilities denominated in euro (as referred to in column 2 of Form BT) and 'C' refers to assets and liabilities denominated in currencies other than sterling and euro (as referred to in column 3 of Form BT). In accordance with Form BT, assets and liabilities in currencies other than sterling are to be recorded in sterling.

(3) The figures reported on the Form BT relate to business conducted out of offices in the United Kingdom.

For e-money issuers:

Outstanding balance of e-money liabilities

For credit unions:

Deposits with the credit union (share capital)

LESS

the credit union's bank deposits (investments + cash at bank)

Note:

Only United Kingdom business is relevant for calculating credit unions' MELs.

For building societies:

• deposit liabilities (including debt securities up to five years original maturity)

(that is, the amounts in sterling (in column 1) and one-third of foreign currency referenced amounts (in columns 2 and 3) for items B1.1+B1.2+B2.0a+B2.0b+B2.10+B2.13+B2.14+B2.15+B2.16)

LESS amounts in respect of:

•sterling repo liabilities with the Bank of England

(that is, ONLY the amounts in sterling (in column 5) for item B2.5a)

•balances held with the Bank of England (excluding cash ratio deposits)

(that is, the amounts in sterling (in column 1) and one-third of foreign currency referenced amounts (in columns 2 and 3) for item B6.2a, less the amounts in sterling (in column 1) and one-third of foreign currency referenced amounts (in columns 2 and 3) for item OW1.1)

• market loans to banks, building societies (balances with and loans to, plus CDs, Commercial paper)

(that is, the amounts in sterling (in column 1) and one-third of foreign currency referenced amounts (in columns 2 and 3) for items B6.3.a+B6.4.a+B6.4b+B6.5a+B6.5b+B6.12a)

•investments with banks and building societies (bonds, notes and other debt instruments up to five years original maturity) (that is, the amounts in sterling (in column 1) and one-third of foreign currency referenced amounts (in columns 2 and 3) for items B6.6a1+B6.6a2+B6.10a1+B6.10a2)

Note :

All references in the definition for building society MELs are to entries in the MFS1 which is submitted monthly by all building societies to the FSA.

A.2

NUMBER OF MORTGAGES ENTERED INTO AND ADMINISTERED 8

The number of new mortgage contracts entered into;8

AND 8

The number of mortgage contracts being administered, multiplied by 0.5.8

Notes: 8

(1) For 2004/05 and 2005/06 firms have supplied this data on their 'HSF1' or 'variation of permission' application form.8

(2) In this context a 'mortgage' means a loan secured by a first charge over residential property in the United Kingdom. For the measure of the number of contracts being administered, each first charge counts as one contract, irrespective of the number of loans involved.8

(3) Mortgages administered include those that the firm administers on behalf of other firms.8

A.3

GROSS PREMIUM INCOME AND GROSS TECHNICAL LIABILITIES For insurers:The amount of premium receivable which must be included in the documents required to be deposited under IPRU(INS) 9.6 in relation to the financial year to which the documents relate but disregarding for this purpose such amounts as are not included in the document by reason of a waiver or an order under section 68 of the Insurance Companies Act 1982 carried forward as an amendment to IPRU(INS) under transitional provisions relating to written concessions in SUP;

less,premiums relating to pension fund management business where the firm owns the investments and there is no transfer of risk;

AND the amount of gross technical liabilities (IPRU(INS) Appendix 9.1 - Form 15, line 19) which must be included in the documents required to be deposited under IPRU(INS) 9.6R in relation to the financial year to which the documents relate but disregarding for this purpose such amounts as are not included in the document by reason of a waiver or an order under section 68 of the Insurance Companies Act 1982 carried forward as an amendment to IPRU(INS) under transitional provisions relating to written concessions in SUP;

less,

the amount of gross technical liabilities relating to pension fund management business where the firm owns the investments and there is no transfer of risk.

Notes :

(1) in the case of either:

(a) a pure reinsurer carrying on general insurance business through a branch in the United Kingdom; or

(b) an insurer whose head office is not in an EEA State carrying on general insurance business through a branch in the United Kingdom; or

(c) a non-EEA insurer other than a Swiss general insurer which has permission to carry on direct insurance business and which has made a deposit in an EEA state other than the United Kingdom in accordance with IPRU(INS) 8.1(2),

the amount only includes premiums received and gross technical liabilities held in respect of its United Kingdom business;

(2) for a Swiss general insurance company, premiums and gross technical liabilities include those relevant to the operations of the company's United Kingdombranch; and

(3) a firm need not include premiums and gross technical liabilities relating to pure protection contracts which it reports, and pays a fee on, in the A.4 activity group.

For friendly societies:

Either:

(a) the value of "contributions" as income under Schedule 7: Part I item 1(a) to the Friendly Societies (Accounts and Related Provisions) Regulations 1994 (SI 1994/1983) (the regulations) for a non-directive friendly society, included within the income and expenditure account; or

(b) the value of "gross premiums written" under Schedule 1: Part I items I.1(a) and II.1.(a) of the regulations for a directive friendly society included within the income and expenditure account.

Note :

In both (a) and (b) above only premium receivable in respect of United Kingdom business are relevant.

A.4

ADJUSTED GROSS PREMIUM INCOME AND MATHEMATICAL RESERVES

Amount of new regular premium business (yearly premiums including reassurances ceded but excluding cancellations and reassurances accepted), times ten;

Plus

amounts of new single premium business (total including reassurances ceded but excluding cancellations and reassurances accepted). Group protection business (life and private health insurance) must be included;

Less

premiums relating to pension fund management business where the firm owns the investments and there is no transfer of risk.

For each of the above, business transacted through independent practitioners will be divided by two in calculating the adjusted gross premium income;

AND

the amount of mathematical reserves (IPRU(INS) Appendix 9.1R - Form 9, Line 23) which must be included in the documents required to be deposited under IPRU(INS) 9.6R in relation to the financial year to which the documents relate but disregarding for this purpose such amounts as are not included in the document by reason of a waiver or an order under section 68 of the Insurance Companies Act 1982 carried forward as an amendment to IPRU(INS) under transitional provisions relating to written concessions in SUP;

Less

mathematical reserves relating to pension fund management business where the firm owns the investment and there is no transfer of risk.

Notes:

(1) [deleted]10

(2) Only premiums receivable and mathematical reserves held in respect of United Kingdom business are relevant.

10

A.5

ACTIVE CAPACITY

The capacity of the syndicate(s) under management in the year in question. This includes the capacity for syndicate(s) that are not writing new business, but have not been closed off in the year in question.

A.6

Not applicable.

A.7

FUNDS UNDER MANAGEMENT (FuM)

The total value, in pounds sterling, of all assets (see note (a) below) in portfolios which the firm manages, on a discretionary basis (see note (b) below), in accordance with its terms of business, less:

(a) funds covered by the exclusion contained in article 38 (Attorneys) of the Regulated Activities Order;

(b) funds covered by the exclusion contained in article 66(3) (Trustees, nominees and personal representatives) of the Regulated Activities Order;

(c) funds covered by the exclusion contained in article 68(6) (Sale of goods or supply of services) of the Regulated Activities Order;

(d) funds covered by the exclusion contained in article 69(5) (Groups and joint enterprises) of the Regulated Activities Order; and

(e) the value of those parts of the managed portfolios in respect of which the responsibility for the discretionary management has been formally delegated to another firm (and which firm will include the value of the assets in question in its own FuM total); any such deduction should identify the firm to which management responsibility has been delegated.

Notes on FuM

(a) For the purposes of calculating the value of funds under management, "assets" means all assets that consist of or include any investment which is a designated investment or those assets in respect of which the arrangements for their management are such that the assets may consist of or include such investments, and either the assets have at any time since 29 April 1988 done so or the arrangements have at any time (whether before or after that date) been held out as arrangements under which the assets would do so.

(b) Assets managed on a non-discretionary basis, being assets that the firm has a contractual duty to keep under continuous review but in respect of which prior specific consent of the client must be obtained for proposed transactions, are NOT included as this activity is covered in those charged to fees in activity groups A.12 and A.13.

(c) In respect of collective investment schemes, "assets" means the total value of the assets of the scheme.

(d) For an OPS firm, the FuM should also be reduced by the value of the assets held as a result of a decision taken in accordance with article 4(6) of The Financial Services and Markets Act 2000 (Carrying on Regulated Activities by Way of Business) Order 2001 (investments in collective investment scheme or bodies corporate which have as their primary purpose the acquisition, directly, or indirectly, of "relevant investments", as defined in that article).

(e) Only assets that are managed from an establishment maintained by the firm in the United Kingdom are relevant.

A.8

Not applicable.

A.9

GROSS INCOME

For operators (including ACDs and managers of unit trusts):

gross income from the activity relating to fee-block A.9 is defined as:

• the amount of the annual charge on funds invested in regulated or unregulated collective investment scheme received or receivable in the latest accounting period (this is calculated as a % of funds invested, typically 1% p.a.);

PLUS

• the front-end or exit charge levied on sales or redemptions of collective investment schemes (typically 4-5% of sales/redemptions) in that same accounting period;

PLUS

• any additional initial or management charges levied through a product wrapper such as a PEP or an ISA;

BUT EXCLUDING box management profits.

For depositaries (including trustees of collective investment schemes and ICVC depositaries):

The amount of the annual charge levied on funds in regulated collective investment schemes for which they act as depositary (typically a % of the total funds for which they act as depositary).

Note:

Only the gross income corresponding to United Kingdom business is relevant.

A.10

NUMBER OF TRADERS

Any employee or agent, who:

• ordinarily acts within the United Kingdom on behalf of an authorised person liable to pay fees to the FSA in its fee-block A.10 (firms dealing as principal); and who,

• as part of their duties in relation to those activities of the authorised person , commits the firm in market dealings or in transactions in securities or in other specified investments in the course of regulated activities.

A.11

Not applicable.

A.12

APPROVED PERSONS

The number of persons approved to undertake one, or more, of the following customer functions:

CF21 Investment adviser function;

CF22 Investment adviser (trainee) function;

CF24 Pension transfer specialist function;

CF25 Adviser on syndicate participation at Lloyd's function; or

CF26 Customer trading function.

A.13

APPROVED PERSONS

The number of persons approved to undertake one, or more, of the following customer functions:

CF21 Investment adviser function;

CF22 Investment adviser (trainee) function;

CF24 Pension transfer specialist function;

CF25 Adviser on syndicate participation at Lloyd's function; or

CF26 Customer trading function.

A.14

APPROVED PERSONS

The number of persons approved to undertake the following controlled function:

CF23 Corporate finance adviser function.

A.15

Not applicable.

A.16

Percentage share of the amount paid towards PIA's 2001/2002 pensions review levy by fee-payers in fee-block A.16.

A.17

Not applicable.

A.18

ANNUAL INCOME 8

(a) the net amount retained by the firm of all brokerages, fees, commissions and other related income (eg administration charges, overriders, profit shares) due to the firm in respect of or in relation to mortgage mediation activity (or activities which would have been mortgage mediation activity if they had been carried out after 30 October 2004);8

Plus 8

(b) for any mortgage mediation activity carried out by the firm for which it receives payment from the lender on a basis other than that in (a), the value of all new mortgage advances resulting from that activity multiplied by 0.004;8

Plus 8

(c) if the firm is a mortgage lender, the value of all new mortgage advances which are or would be regulated mortgage contracts if they had been made after 30 October 2004 (other than those made as a result of mortgage mediation activity by another firm), multiplied by 0.004.8

Notes on annual income: 8

(1) For 2004/05 and 2005/06 firms have supplied this data on their 'HSF1' or 'variation of permission' application form.8

(2) For the purposes of calculating annual income, "net amount retained" means all the commission, fees, etc. in respect of mortgage mediation activity that the firm has not rebated to customers or passed on to other firms (for example, where there is a commission chain). Items such as general business expenses (eg employees' salaries, overheads) should not be deducted.8

(3) The firm must include in its income calculation, on the same basis as above, earnings from those who will become its appointed representatives immediately after authorisation.8

(4) Reference to a "firm" above also includes reference to any person who carried out activities which would be mortgage mediation activity if they had been carried out after 30 October 2004.8

A.19

ANNUAL INCOME 8

(a) the net amount retained by the firm of all brokerages, fees, commissions and other related income (eg administration charges, overriders, profit shares) due to the firm in respect of or in relation to insurance mediation activity (or activities which would have been insurance mediation activity if they had been carried out after 13 January 2005) in relation to general insurance contracts or pure protection contracts;8

Plus 8

(b) in relation to the activities set out in (a), for any insurance mediation activity carried out by the firm for which it receives payment from the insurer on a basis other than that in (a), the amount of premiums receivable on the contracts of insurance resulting from that activity multiplied by 0.07;8

Plus 8

(c) if the firm is an insurer, in relation to the activities set out in (a), the amount of premiums receivable on its contracts of insurance multiplied by 0.07, excluding those contracts of insurance which:8

(i) result from insurance mediation activity by another firm, where a payment has been made by the insurer to the firm under (a); or8

(ii) the insurer reports in, and pays a fee under, the A.4 activity group; or 8

(iii) are not general insurance contracts or pure protection contracts.8

Notes on annual income: 8

(1) For 2004/05 and 2005/06 firms have supplied this data on their 'HSF1' or 'variation of permission' application form.8

(2) For the purposes of calculating annual income, "net amount retained" means all the commission, fees, etc. in respect of insurance mediation activity that the firm has not rebated to customers or passed on to other firms (for example, where there is a commission chain). Items such as general business expenses (eg employees' salaries, overheads) should not be deducted.8

(3) The firm must include in its income calculation, on the same basis as above, earnings from those who will become its appointed representatives immediately after authorisation.8

(4) Reference to a "firm " above also includes reference to any person who carried out activities which would be insurance mediation activity (in respect of general insurance contracts or pure protection contracts) if they had been carried out after 13 January 2005.8

B. Market operators

Not applicable.

B. Service companies

Not applicable.

Part 3

This table indicates the valuation date for each fee-block. A firm can calculate its tariff data by applying the tariff bases set out in Part 2 with reference to the valuation dates shown in this table.
888

Activity group

Valuation date

IN THIS TABLE, REFERENCES TO SPECIFIC DATES OR MONTHS ARE REFERENCES TO THE LATEST ONE OCCURRING BEFORE THE START OF THE PERIOD TO WHICH THE FEE APPLIES, UNLESS OTHERWISE SPECIFIED - E.G. FOR 2004/05 FEES (1 APRIL 2004 TO 31 MARCH 2005), A REFERENCE TO DECEMBER MEANS DECEMBER 2003.

Where a firm's tariff data is in a currency other than sterling, it should be converted into sterling at the exchange rate prevailing on the relevant valuation date.

A.1

For banks:

Modified eligible liabilities (MELs), valued at:

• for a firm which reports monthly, the average of the MELs for October, November and December;

• for a firm which reports quarterly, the MELs for December.

For e-money issuer:

MELs, valued at the end of the financial year ended in the calendar year ending 31 December.

For credit unions:

MELs, valued at December or as disclosed by the most recent annual return made prior to that date.

For building societies:

MELs, valued at the average of the MELs for October, November and December.

A.2

Number of mortgages entered into in the twelve months ending 31 December.8

AND 8

Number of mortgages being administered on 31 December.8

A.3

Annual gross premium income (GPI), for the financial year ended in the calendar year ending 31 December.

AND

Gross technical liabilities (GTL) valued at the end of the financial year ended in the calendar year ending 31 December.

A.4

Adjusted annual gross premium income (AGPI) for the financial year ended in the calendar year ending 31 December.

AND

Mathematical reserves (MR) valued at the end of the financial year ended in the calendar year ending 31 December.

A.5

Active capacity (AC), in respect of the Underwriting Year (as reported to the Society of Lloyd's) which is current at the beginning of the period to which the fee relates.

[Note: this is the Underwriting Year which is already in progress at the start of the fee period - e.g. for 2004/05 fees, the fee period will begin on 1 April 2004, which is in the 2004 Underwriting Year, so the AC for that Underwriting Year is the relevant measure.]

A.6

Not applicable.

A.7

Funds under management (FuM), valued at 31 December.

A.8

Not applicable.

A.9

Annual gross income (GI), valued at the most recent financial year ended before 31 December.

A.10

Number of traders as at 31 December.

A.11

Not applicable.

A.12

Relevant approved persons as at 31 December.

A.13

Relevant approved persons as at 31 December.

A.14

Relevant approved persons as at 31 December.

A.15

Not applicable.

A.16

Not applicable.

A.17

Not applicable.

A.18

Annual income (AI) for the financial year ended in the calendar year ending 31 December.8

A.19

Annual income (AI) for the financial year ended in the calendar year ending 31 December.8

B. Market operators

Not applicable.

B. Service companies

Not applicable.

SUP 20 Annex 2 Fee tariff rates, permitted deductions and EEA/Treaty firm modifications for the period from 1 April 2005 to 31 March 20065

R

Part 1

This table shows the tariff rates applicable to each fee block.

(1)

For each activity group specified in the table below, the fee is the total of the sums payable for each of the tariff bands applicable to the firm's business, calculated as follows:

(a)

the relevant minimum fee; plus

(b)

an additional fee calculated by multiplying the firm's tariff base by the appropriate rates applying to each tranche of the tariff base, as indicated.

(2)

A firm may apply the relevant tariff bases and rates to non-UK business, as well as to its UK business, if:

(a)

it has reasonable grounds for believing that the costs of identifying the firm's UK business separately from its non-UK business in the way described in Part 2 of SUP 20 Annex 1 R are disproportionate to the difference in fees payable; and

(b)

it notifies the FSA in writing at the same time as it provides the information concerned under SUP 20.3 (Information on which fees are calculated), or, if earlier, at the time it pays the fees concerned.

(3)

For a firm which has not complied with SUP 20.3.2 R (Information on which fees are calculated) for this period:

(a)

the fee is calculated using (where relevant) the valuation or valuations of business applicable to the previous period, multiplied by the factor of 1.10;

(b)

an additional administrative fee of £250 is payable; and

(c)

the minimum total fee (including the administrative fee in (b)) is £400.

Activity group

Fee payable

A.1

Minimum fee (£)

150

£ million of Modified Eligible Liabilities (MELs)

Fee (£/£m or part £m of MELS)

0 - 0.5

0

>0.5 - 2

additional flat-rate fee of £350

>2 - 10

additional flat-rate fee of £500

>10 - 200

31.61

>200 - 2,000

31.58

>2,000 - 10,000

31.53

>10,000 - 20,000

31.40

>20,000

31.15

For a firm in A.1 which has a limitation on its permission to the effect that it may accept deposits from wholesale depositors only, the fee is calculated as above less 30%.

In addition, the fee specified below is payable by UKbanks and building societies. The wholesale depositors discount and permitted deductions in Part 2 of SUP 20 Annex 2 R do not apply to this fee.

Minimum fee (£m of MELs)

Fee (£)

if 0 - 2,000

0

if >2,000

4,000

£ million of MELs

Fee (£/£m or part £m of MELs)

0 - 5,000

0

>5,000 - 10,000

1.56

>10,000 - 20,000

1.42

>20,000

1.32

A.2

Minimum fee (£)

450

No. of mortgages

Fee (£/mortgage)

0 - 50

0

51 - 500

4.52

501 - 1,000

1.81

1,001 - 50,000

1.36

50,001 - 500,000

0.45

>500,000

0.09

A.3

Gross premium income (GPI)

Minimum fee (£)

400

£ million of GPI

Fee (£/£m or part £m of GPI)

0 - 0.5

0

>0.5 - 2

1,628.36

>2 - 5

1,505.79

>5 - 20

1,393.27

>20 - 75

440.87

>75 - 150

381.05

>150

53.21

PLUS

Gross technical liabilities (GTL)

Minimum fee (£)

0

£ million of GTL

Fee (£/£m or part £m of GTL)

0 - 1

0

>1 - 5

39.99

>5 - 50

37.05

>50 - 100

34.40

>100 - 1,000

10.82

>1,000

4.33

A.4

Adjusted annual gross premium income (AGPI)

Minimum fee (£)

200

£ million of AGPI

Fee (£/£m or part £m of AGPI)

0 - 1

0

>1 - 50

723.93

>50 - 1,000

674.90

>1,000 - 2,000

463.28

>2,000

318.07

PLUS

Mathematical reserves (MR)

Minimum fee (£)

200

£ million of MR

Fee (£/£m or part £m of MR)

0 - 1

0

>1 - 10

38.75

>10 - 100

35.48

>100 -1,000

24.02

>1,000 - 5,000

16.90

>5,000 - 15,000

13.13

>15,000

10.21

A.5

Minimum fee (£)

550

£ million of Active Capacity (AC)

Fee (£/£m or part £m of AC)

0 - 50

0

>50 - 150

97.87

>150 - 250

82.37

>250

24.15

A.6

£1,166,000

A.7

For class 1(C), (2) and (3) firms:

Minimum fee (£)

1,150

£ million of Funds under Management (FuM)

Fee (£/£m or part £m of FuM)

0 - 10

0

>10 - 100

59.24

>100 - 2,500

19.04

>2,500 - 10,000

10.61

>10,000

1.19

For class 1(B) firms: the fee calculated as for class 1(C) firms above, less 15%.

For class 1(A) firms: the fee calculated as for class 1(C) firms above, less 50%.

A.8

This activity group does not apply for this period.

A.9

Minimum fee (£)

1,800

£ million of Gross Income (GI)

Fee (£/£m or part £m of GI)

0 - 1

0

>1 - 5

1,397.35

>5 - 15

1,373.68

>15 - 40

1,360.03

>40

1,341.51

A.10

Minimum fee (£)

2,000

No. of traders

Fee (£/trader)

0 - 2

0

3 - 5

1,746

6 - 10

1,261

11 - 50

1,166

51 - 200

1,008

>200

813

In addition, the fee specified below is payable by UK domestic firms. The permitted deductions in Part 2 of SUP 20 Annex 2 R do not apply to this fee.

Minimum fee (No. of traders)

Fee (£)

if 0 - 100

0

if >100

2,000

No. of traders

Fee (£/trader)

0 - 125

0

126 - 250

80.50

>250

58.50

A.11

This activity group does not apply for this period.

A.12

Minimum fee (£)

1,680

No. of persons

Fee (£/person)

0 - 1

0

2 - 4

980

5 - 10

495

11 - 25

362

26 - 150

197

151 - 1,500

150

>1,500

100

For a professional firm in A.12 the fee is calculated as above less 10%.

A.13

For class (2) firms:

Minimum fee (£)

1,590

No. of persons

Fee (£/person)

0 - 1

0

2 - 4

867

5 - 10

835

11 - 25

801

26 - 500

736

501 - 4,000

678

>4000

640

For class (1) firms: £1,590

For a professional firm in A.13 the fee is calculated as above less 10%.

A.14

Minimum fee (£)

1,220

No. of persons

Fee (£/person)

0 - 1

0

2

1,195

3 - 4

1,117

5 - 10

1,028

11 - 100

975

101 - 200

683

>200

410

A.15

This activity group does not apply for this period.

A.16

0

A.17

This activity group does not apply for this period.

A.18

Minimum fee (?)

620

£ thousands of Annual Income (AI)

Fee (£/£ thousand or part £ thousand of AI)

0 - 100

0

>100 - 1,000

5.73

>1,000 - 5,000

4.77

>5,000 - 10,000

3.82

>10,000 - 20,000

2.87

>20,000

2.39

A.19

Minimum fee (£)

400

£ thousands of Annual Income (AI)

Fee (£/£ thousand or part £ thousand of AI)

0 - 100

0

>100 - 1,000

3.49

>1,000 - 5,000

3.05

>5,000 - 15,000

2.18

>15,000 - 100,000

0.87

>100,000

0.35

B. Market operators

£20,000

B. Service companies

Bloomberg LP

£31,500

EMX Co Ltd

£21,000

LIFFE Services Ltd

£21,000

Ofex plc

£51,500

OMGEO Ltd

£21,000

Reuters Ltd

£31,500

Swapswire Ltd

£21,000

Thomson Financial Ltd

£21,000

Part 2

This table shows the permitted deductions that apply:

Activity group

Nature of deduction

Amount of deduction

A.1

Financial penalties received

9.5% of the fee payable by the firm for the activity group (see Part 1)

A.3

Financial penalties received

8.5% of the fee payable by the firm for the activity group (see Part 1)

A.4

Financial penalties received

9.8% of the fee payable by the firm for the activity group (see Part 1)

A.5

Financial penalties received

8.5% of the fee payable by the firm for the activity group (see Part 1)

A.6

Financial penalties received

8.5% of the fee payable by the firm for the activity group (see Part 1)

A.7

Financial penalties received

10.6% of the fee payable by the firm for the activity group (see Part 1)

A.9

Financial penalties received

8.5% of the fee payable by the firm for the activity group (see Part 1)

A.10

Financial penalties received

14.3% of the fee payable by the firm for the activity group (see Part 1)

A.12

Financial penalties received

16.8% of the fee payable by the firm for the activity group (see Part 1)

A.13

Financial penalties received

10.4% of the fee payable by the firm for the activity group (see Part 1)

A.14

Financial penalties received

8.5% of the fee payable by the firm for the activity group (see Part 1)

E.

Financial penalties received

7.4% of the fee payable by the firm for the activity group (see Part 1)

Part 3

This table shows the modifications to fee tariffs that apply to incoming EEA firms and incoming Treaty firms.

Activity group

Percentage of tariff payable under Part 1 applicable to the firm subject to a minimum amount payable of £100 (unless specified below)

A.1

20% (for a firm operating on cross-border services basis only, 0% and the minimum sum is not applicable)

A.3

0% and the minimum sum is not applicable

A.4

75%

A.7 and A.9

95%

A.10, A.12, A.13 and A.19

90%

SUP 20 Annex 3 Transaction reporting fees and Article 54 RAO certificate fees for the period from 1 April 2005 to 31 March 20063

R

Part 1

This table shows the fees payable for transaction reporting.

Fee type

Fee amount (including VAT)

Date payable

Transaction charge

Number of transactions per annum

Fee per transaction (inc. VAT)

First working day of each month

For the first 1,000

0p

1,001 - 1,000,000

3p

1,000,001 - 4,000,000

2.75p

4,000,001 - 8,000,000

2.5p

8,000,001 - 13,000,000

2.25p

13,000,001 - 20,000,000

2p

>20,000,000

1.75p

(1)

Firms using the Direct Reporting System software or the Transaction Reporting System4 will be additionally invoiced for:

(a)

an initial software licence fee of £587.50 (including VAT) for users of the Direct Reporting System;4

(b)

an annual enrolment fee of £235 (including VAT) per licence held on 1 April each year for users of the Direct Reporting System and the Transaction Reporting System; and4

(c)4

an annual enrolment fee of £235 (including VAT) per registration held on 1 April each year for users of the Transaction Reporting System.

(2)

applicable methods of payment of these fees are listed at SUP 20.2.7A R.

Part 2

The periodic fee payable under SUP 20.6.1 R for a certificate issued under Article 54 of the Regulated Activities Order is £1,000.

SUP 20 Annex 4 Application fees for guidance on the Capital Requirements Directive for the period from 1 April 2005 to 31 March 20061

R

For firms falling into a group (Group 1) in which five or more significant overseas entities are applying for guidance on the availability of a waiver or concession in connection with future rules implementing the revised Basel Capital Accord (including any amendments), the fees in Table 1 are applicable.

Table 1

Application group

Description of group

Application fee 2005/06

Advanced IRB (£'000)

Foundation IRB (£'000)

AMA (£'000)

Group 1

Five or more significant overseas entities applying for guidance on the availability of a waiver or concession in connection with future rules implementing the revised Basel Capital Accord (including any amendments)

219

190

148

For all other firms the fees in Table 2 are applicable

Table 2

Application group

Description of group

Application fee 2005/06

Modified eligible liabilities (£m)

Number of traders as at 31 December 2004

Advanced IRB (£'000)

Foundation IRB (£'000)

AMA (£'000)

Group 2

>40,000

>200

190

162

120

Group 3

>5,000 - 40,000

26 - 200

77

59

42

Group 4

0 - 5,000

0 - 25

35

25

20

(1)

Advanced and Foundation IRB applications are applications for guidance regarding the Internal Ratings Based approach for credit risk. AMA applications are applications for guidance regarding the Advanced Measurement Approach for operational risk.

(2)

For the purposes of Table 2, a firm's A.1 or A10 tariff data for the relevant period will be used to provide the value of modified eligible liabilities or number of traders.