Related provisions for SUP 15.3.16
Activities set out in Annex I of the BCD1
Table 1: BCD activities |
Part II RAO Activities |
Part III RAO Investments |
|
1. |
Acceptance of deposits and other repayable funds from the public |
Article 5 |
Article 74 |
2. |
Lending |
Article 61, 64 |
Article 88 |
3. |
Financial leasing |
||
4. |
Money transmission services |
||
5. |
Issuing and administering means of payment (eg credit cards, travellers' cheques and bankers' drafts) |
||
6. |
Guarantees and commitments |
||
7. |
Trading for own account or for account of customers in: (a) money market instruments (b) foreign exchange (c) financial futures and options (d) exchange and interest rate instruments (e) transferable securities |
Article 14, 21, 25 (see Note 1), 64 Article 14, 21, 25, 64 Article 14, 21, 25, 64 Article 14, 21, 25, 64 Article 14, 21, 25, 64 |
Article 77, 78, 80, 83-85, 89 Article 83-85, 89 Article 83-85, 89 Article 83-85, 89 Article 76-81, 89 |
8. |
Participation in share issues and the provision of services relating to such issues |
Article 14, 21, 25, 53, 64 |
Article 76-81, 89 |
9. |
Advice to undertakings on capital structure, industrial strategy and related questions and advice and services relating to mergers and the purchase of undertakings |
Article 14, 21, 25, 53, 64 |
Article 76-80, 83-85, 89 |
10. |
Money broking |
Article 25, 64 |
Article 77, 78, 89 |
11. |
Portfolio management and advice |
Article 14, 21, 25, 37, 53, 64 |
Article 76-81, 83-85, 89 |
12. |
Safekeeping and administration of securities |
Article 40, 45, 64 |
Article 76-81, 83-85, 89 |
13. |
Credit reference services |
||
14. |
Safe custody services |
1 | 1 | 1
Note 1. The BCD activity of trading for account of customers does not extend to the regulated activity of making arrangements with a view to transactions in investments under article 25(2) of the Regulated Activities Order unless the arrangements bring about or would bring about particular transactions. |
Table of periodic fees
1 Fee payer |
2 Fee payable |
3 Due date |
4 Events occurring during the period leading to modified periodic fee |
Any firm (except an ICVC or a UCITS qualifier) |
As specified in FEES 4.3.1 R |
(1) Unless (2) applies, on or before the relevant dates specified in FEES 4.3.6 R (2) If an event specified in column 4 occurs during the course of a financial year, 30 days after the occurrence of that event, or if later the dates specified in FEES 4.3.6 R. |
Firm receives permission; or Firm extends permission |
Any firm which reports its reportable transactions to the FSA using the FSA's Direct Reporting System or FSA's Transaction Reporting System (see SUP 17) |
(1) For transaction charges, the first working day of each month (2) For licence fees and enrolment charges, by the date set out on the relevant invoice |
Not applicable |
|
Persons who hold a certificate issued by the FSA under article 54 of the Regulated Activities Order (Advice given in newspapers etc.) |
£1,000 |
(1) Unless (2) applies, on or before 30 April (2) If an event in column 4 occurs during the course of a financial year, 30 days after the occurrence of that event |
|
Any manager of an authorised unit trust; |
In relation to each unit trust the amount specified in FEES 4 Annex 4 |
Authorisation order is made in relation to the relevant scheme |
|
In relation to each ICVC the amount specified in FEES 4 Annex 4 |
|||
Persons who, under the constitution or founding arrangements of a recognised scheme, is responsible for the management of the property held for or within the scheme; |
In relation to each recognised scheme the amount specified in FEES 4 Annex 4 |
The relevant scheme becomes a recognised collective investment scheme |
|
Not applicable |
|||
FEES 4 Annex 6, part 1 |
(1) Unless (2) applies, by the due dates set out in FEES 4 Annex 6, part 1 (2) If the event in column 4 occurs during the course of a financial year, 30 days after the occurrence of that event |
Recognition order is made.Modified periodic fee: (1) for a UKrecognised investment exchange, 150,000; (2) for a UKrecognised clearing house, 250,000. |
|
FEES 4 Annex 6, part 2 |
(1), unless (2) applies, 1 July. (2) If the event in column 4 occurs during the course of a financial year , 30 days after the occurrence of that event. |
Recognition order is made.Modified periodic fee: (1) for an overseas investment exchange, 10,000; (2) for a overseas clearing house, 35,000. |
|
Listedissuers (in LR) of shares, depositary receipts and securitised derivatives (in LR). |
Within 30 days of the date of the invoice |
Issuer (in LR) becomes subject to listing rules |
|
10,00010 per year for the period from 1 April to 31 March the following year (see Note)2 |
Within 30 days of the date of the invoice |
Approval of sponsor |
|
All non-listed issuers (in DTR) of shares, depositary receipts and securitised derivatives. |
Within 30 days of the date of the invoice |
Non-listed issuer (in DTR) becomes subject to disclosure rules and transparency rules |
Note:Sponsors on the list of approved sponsors as at 1 April each year will be liable for the full year's annual fee unless FEES 4.3.13 R applies.2
Applicable sections (see SUP 11.1.1 R)
Category of firm |
Applicable sections |
|
(1) |
A UK domestic firm other than a building society, a non-directive friendly society or a UK insurance intermediary3 |
All except SUP 11.3, SUP 11.4.2A RandSUP 11.4.4 R3 |
(1A) |
(a) In the case of an exempt change in control (see Note), SUP 11.1, SUP 11.2andSUP 11.9 (b) In any other case, all except SUP 11.3, RandSUP 11.4.4 R3 |
|
(2) |
||
(2A) 3 |
all exceptSUP 11.3, SUP 11.4.2 R, SUP 11.4.3 GandSUP 11.4.4 R3 |
|
(3) |
All except SUP 11.3, SUP 11.4.2 R, SUP 11.4.2A R, SUP 11.4.3 G, SUP 11.4.9 G, SUP 11.5.8 G to SUP 11.5.10 G, SUP 11.6.2 R, SUP 11.6.3 R, SUP 11.6.6 G, SUP 11.73 |
|
Note |
In row (1A), a change in control is exempt if the controller or proposed controller is exempt from any obligation to notify the FSA under Part XII of the Act (Control over Authorised Persons) because of The Financial Services and Markets Act 2000 (Controllers) (Exemption) (No 2) Order 2001 (SI 2001/3338). (See SUP 11.3.2A G).21 |
Table: This table belongs to COLL 6.3.2 G (2) (a).
Valuation and pricing |
||
1 |
The valuation of scheme property |
|
(1) |
Where possible, investments should be valued using a reputable source. The reliability of the source of prices should be kept under regular review. |
|
(2) |
An investment for which different prices are quoted according to whether it is being bought or sold should be valued at its mid-market price. The instrument constituting the scheme should set out the valuation method that will apply where a single price for buying and selling a security is quoted. |
|
(3) |
Any part of the scheme property of an authorised fund that is not an investment should be valued at a fair value, but for immovables this is subject to COLL 5.6.20 R (3) (f) (Standing independent valuer and valuation). |
|
(4) |
For the purposes of (2) and (3), any fiscal charges, commissions, professional fees or other charges that were paid, or would be payable on acquiring or disposing of the investment or other part of the scheme property should be excluded from the value of an investment or other part of the scheme property. |
|
(5) |
Where the authorised fund manager has reasonable grounds to believe that:
|
|
(6) |
The circumstances which may give rise to a fair value price being used include:
|
|
(7) |
In determining whether to use such a fair value price , the authorised fund manager should include in his consideration:
|
|
(8) |
The authorised fund manager should document the basis of valuation (including any fair value pricing policy) and, where appropriate, the basis of any methodology and ensure that the procedures are applied consistently and fairly. |
|
(9) |
Where a unit price is determined using properly applied fair value prices in accordance with policies in (8), subsequent information that indicates the price should have been different from that calculated will not normally give rise to an instance of incorrect pricing. |
|
2 |
The pricing controls of the authorised fund manager |
|
(1) |
An authorised fund manager needs to be able to demonstrate that it has effective controls over its calculations of unit prices. |
|
(2) |
The controls referred to in (1) should ensure that:
|
|
(3) |
In exercising its pricing controls, the authorised fund manager may exercise reasonable discretion in determining the appropriate frequency of the operation of the controls and may choose a longer interval, if appropriate, given the level of activity on the fundor the materiality of any effect on the price. |
|
(4) |
Evidence of the exercise of the pricing controls should be retained. |
|
(5) |
Evidence of persistent or repetitive errors in relation to these matters, and in particular any evidence of a pattern of errors working in an authorised fund manager's favour, will make demonstrating effective controls more difficult. |
|
(6) |
Where the pricingfunction is delegated to a third party, COLL 6.6.15 R (1) (Committees and delegation) will apply. |
|
3 |
The depositary's review of the authorised fund manager's systems and controls |
|
(1) |
This section provides details of the types of checks a depositary should carry out to be satisfied that the authorised fund manager adopts systems and controls which are appropriate to ensure that prices of units are calculated in accordance with this section and to ensure that the likelihood of incorrect prices will be minimised. These checks also apply where an authorised fund manager has delegated all or some of its pricing functions to a third party. |
|
(2) |
A depositary should thoroughly review an authorised fund manager's systems and controls to confirm that they are satisfactory. The depositary's review should include an analysis of the controls in place to determine the extent to which reliance can be placed on them. |
|
(3) |
A review should be performed when the depositary is appointed and thereafter as it feels appropriate given its knowledge of the robustness and the stability of the systems and controls and their operation. |
|
(4) |
A review should be carried out more frequently where a depositary knows or suspects that an authorised fund manager's systems and controls are weak or are otherwise unsatisfactory. |
|
(5) |
Additionally, a depositary should from time to time review other aspects of the valuation of the scheme property of each authorised fund for which it is responsible, verifying, on a sample basis, if necessary, the assets, liabilities, accruals, units in issue, securities prices (and in particular the prices of unapproved securities and the basis for the valuation of unquoted securities) and any other relevant matters, for example an accumulation factor or a currency conversion factor. |
|
(6) |
A depositary should ensure that any issues, which are identified in any such review, are properly followed up and resolved. |
|
4 |
The recording and reporting of instances of incorrect pricing |
|
(1) |
An authorised fund manager should record each instance where the price of a unit is incorrect as soon as the error is discovered, and report the fact to the depositary together with details of the action taken, or to be taken, to avoid repetition as soon as practicable. |
|
(2) |
In accordance with COLL 6.6.11 G (Duty to inform the FSA), the depositary should report any breach of the rules in COLL 6.3 immediately to the FSA. However, notification should relate to instances which the depositary considers material only. |
|
(3) |
A depositary should also report to the FSA immediately any instance of incorrect pricingwhere the error is 0.5% or more of the price of a unit, where a depositary believes that reimbursement or payment is inappropriate and should not be paid by an authorised fund manager. |
|
(4) |
In accordance with SUP 16.6.8 R, a depositary should also make a return to the FSA on a quarterly basis which summarises the number of instances of incorrect pricing during a particular period. |
|
5 |
The rectification of pricing breaches |
|
(1) |
COLL 6.6.3 R (1) (Functions of the authorised fund manager) places a duty on the authorised fund manager to take action to reimburse affected unitholders, former unitholders, and the scheme itself, for instances of incorrect pricing, except if it appears to the depositary that the breach is of minimal significance. |
|
(2) |
A depositary may consider that the instance of incorrect pricingis of minimal significance if:
|
|
(3) |
In determining (2), if the instance of incorrect pricing is due to one or more factors or exists over a period of time, each price should be considered separately. |
|
(4) |
If a depositary deems it appropriate, it may, in spite of the circumstances outlined in (2), require a payment from the authorised fund manager or from the authorised fund to the unitholders, former unitholders, the authorised fund or the authorised fund manager (where appropriate). |
|
(5) |
The depositary should satisfy itself that any payments required following an instance of incorrect pricing are accurately and promptly calculated and paid. |
|
(6) |
If a depositary considers that reimbursement or payment is inappropriate, it should report the matter to the FSA, together with its recommendation and justification. The depositary should take into account the need to avoid prejudice to the rights of unitholders, or the rights of unitholders in a class of units. |
|
(7) |
It may not be practicable, or in some cases legally permissible, for the authorised fund manager to obtain reimbursement from unitholders, where the unitholders have benefited from the incorrect price. |
|
(8) |
In all cases where reimbursement or payment is required, amounts due to be reimbursed to unitholders for individual sums which are reasonably considered by the authorised fund manager and depositary to be immaterial, need not normally be paid. |