Related provisions for FEES 6.3.22A

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FEES 6.3.1RRP
The FSCS may at any time impose a management expenses levy or a compensation costs levy,6 provided that the FSCS has reasonable grounds for believing that the funds available to it to meet relevant expenses are, or will be, insufficient, taking into account expenditure already incurred, actual and expected recoveries and8:668(1) in the case of a management expenses levy, the level of the FSCS's expected8 expenditure in respect of those expenses in the financial year9 of the compensation
FEES 6.3.2AGRP
8The FSCS will usually levy once in each financial year9 (the annual levy)11. However, if the compensation costs or specific costs incurred, or expected to be incurred, exceed the amounts held, or reasonably expected to be held, to meet those costs, the FSCS may, at any time during the financial year9, do one or more of the following:8(1) impose an interim levy11 ; or(2) utilise other sources of funding such as commercial borrowing or other borrowing including from the National
FEES 6.3.3GRP
The FSCS has committed itself in Memorandum of Understanding with9 the FCA9 to publish its policy in respect of levying.815681515151515
FEES 6.3.4GRP
The discretion over levying in FEES 615 also gives the FSCS, if it thinks this appropriate, the ability to use third parties as its agents in raising and collecting the levies.15
FEES 6.3.4ARRP
8The FSCS may at any time impose a MERS levy provided that the FSCS has reasonable grounds for believing that the funds available to it to meet relevant expenses are or will be insufficient, taking into account relevant expenses incurred or expected to be incurred in the financial year of the compensation scheme in relation to which the levy is imposed9.
FEES 6.3.5RRP
The maximum aggregate amount of compensation costs and specific costs for which the FSCS can levy each8class (including levies through the retail pool10)9 in any one financial year9 of the compensation scheme is limited to the amounts set out in the table in FEES 6 Annex 2 R.21029
FEES 6.3.10RRP
The FSCS may include in a compensation costs levy the costs of compensation paid by the FSCS in error, provided that the payment was not made in bad faith.55
FEES 6.3.11RRP
The FSCS must hold any amount collected from a specific costs levy or compensation costs levy to the credit of the classes2 in accordance with the allocation established under FEES 6.4.6AR and FEES 6.5.2-AR9. 228
FEES 6.3.12RRP
Any funds received by the FSCS by way of levy or otherwise for the purposes of the compensation scheme are to be managed as the FSCS considers appropriate, and in doing this the FSCS must act prudently.
FEES 6.3.17RRP
(1) The FSCS may use any money held to the credit of one class2(the creditor class)2 to pay compensation costs or specific costs attributable 8or allocated by way of levy8 to 2another class2(the debtor class)2 if the FSCS has reasonable grounds to believe that this would be more economical than borrowing funds from a third party or raising a levy.228822(2) Where the FSCS acts in accordance with (1), it must ensure that:(a) the creditor class2 is reimbursed by the debtor class2
FEES 6.3.18GRP
2FEES 6.3.17 R deals with how FSCS may use money available to it and does not affect the rules on levy allocation in FEES 6.4, 6.5 and 6.5A8.8
FEES 6.3.20RRP
(1) Where8 the FSCS makes recoveries in relation to protected claims where a8 related compensation costs levy8 would have been allocated to a class (class A) had the levy limit for class A not been reached and has been allocated to another class or classes in the retail pool, the recoveries must be applied:8888(a) 8first, to the classes to which the costs levied were allocated in accordance with FEES 6.5A in the same proportion as those classes contributed, up to the total amount
FEES 6.3.21RRP
If the FSCS has more funds (whether from levies, recoveries or otherwise)8 to the credit of a class82 than the FSCS believes will be required to meet levies on that class82 for the next 12 months, it may refund the surplus to members or former members of the class82 on any reasonable basis.28228
FEES 6.3.22RRP
The FSCS may adjust the calculation of a participant firm's share of any levy to take proper account of:(1) any excess, not already taken into account, between previous levies of that type imposed in relation to previous periods and the relevant costs actually incurred in that period; or(2) participant firms that are exempt from the levy under FEES 6.2; or(3) amounts that the FSCS has not been able to recover from participant firms as a result of FEES 6.3.5 R ; or2(4) amounts
FEES 6.3.22CRRP
(1) 4This rule applies to the calculation of the levies of a firm (A) if:(a) either:(i) A acquires all or a part of the business of another firm (B), whether by merger, acquisition of goodwill or otherwise; or(ii) A became authorised as a result of B's simple change of legal status (as defined in FEES 3 Annex 1R9 Part 6); (b) B is no longer liable to pay a levy; and(c) that acquisition or change takes place after the date to which, or as of which, A's most recent statement of
FEES 6.3.23RRP
If a participant firm's share of a levy or an additional administrative fee under FEES 2.2.1R14would be so small that, in the opinion of the FSCS, the costs of collection would be disproportionate to the amount payable, the FSCS may treat the participant firm as if its share of the levy or additional administrative fee amounted to zero.
FEES 6.1.3GRP
The purpose of this chapter is to set out the requirements on participant firms to pay levies imposed by the FSCS to provide funding for its functions under COMP. The PRA Rulebook deals with funding for the FSCS’s functions for depositor protection and policyholder protection.12
FEES 6.1.4GRP
Section 213(3)(b) of the Act requires the appropriate regulator to make rules to enable the FSCS to impose levies on authorised persons, and on recognised investment exchanges that are operating a multilateral trading facility or operating an organised trading facility,13 in order to meet its expenses. These expenses include in particular expenses incurred, or expected to be incurred, in paying compensation, borrowing or insuring risks.
FEES 6.1.4AGRP
Section 224F of the Act enables the appropriate regulator to make rules to enable the FSCS to impose levies on authorised persons (or any class of authorised persons) in order to meet its management expenses incurred if, under Part 15A of the Act, it is required by HM Treasury to act in relation to relevant schemes. But those rules must provide that the FSCS can impose a levy only if the FSCS has tried its best to obtain reimbursement of those expenses from the manager of the
FEES 6.1.5GRP
The FSCS may impose three 6types of levy: a management expenses levy (consisting of a base costs levy and a specific costs levy)9, a compensation costs levy and a MERS levy.6 The FSCS has discretion as to the amount and 9timing of the levies imposed.662
FEES 6.1.6GRP
In calculating a compensation costs levy, the FSCS12 may include up to the greater of one third of the compensation costs19 expected in the 36-month period following the12 1 April of the financial year of the compensation scheme in relation to which the levy is imposed12, or the compensation costs expected in the 12 months following that date.9899999
FEES 6.1.8GRP
The9 provisions on the allocation of levies to classes9122 meet9 a requirement of section 213(5) of the Act that the FCA12, in making rules to enable the FSCS to impose levies, must take account of the desirability of ensuring that the amount of the levies imposed on a particular class of authorised person reflects, so far as practicable, the amount of claims made, or likely to be made, in respect of that class of person.22229999
FEES 6.1.9GRP
Section 223 of the Act (Management expenses) prevents the FSCS from recovering, through a levy, any management expenses attributable to a particular period in excess of the limit set in COMP as applicable to that period. 'Management expenses' are defined in section 223(3) to mean expenses incurred or expected to be incurred by the FSCS in connection with its functions under the Act, except:(1) expenses incurred in paying compensation;5(2) expenses incurred as a result of the FSCS
FEES 6.1.10GRP
A management expenses levy may consist of two 2elements. The first is a base costs levy, for 50% of12 the base costs of running the compensation scheme in a financial year12, that is, costs which are not dependent upon the level of activity of the compensation scheme and which therefore are not attributable to any specific class.9 The PRA allocates the other 50% of the base costs under its rules.12 Included in base costs12 are items such as the salary of the members of the board
FEES 6.1.11AGRP
10The second element of a management expenses levy is a specific costs levy for the "specific costs" of running the compensation scheme in a financial year12. These costs are attributable to a class, and include the salary costs of certain staff of the FSCS and claims handling and legal and other professional fees. It also may include the cost of any insurance cover that FSCS secures against the risk of FSCS paying out claims above a given level in any particular class (but below
FEES 6.1.14GRP
In imposing a compensation costs levy in each financial year12 of the compensation scheme the FSCS will take into account the compensation costs which the compensation scheme12 has incurred and has not yet raised through levies, any recoveries it has made using the rights that have been assigned to it or to which it is subrogated and9 a further amount calculated taking into account:9(1) [deleted]129(2) [deleted]1221(3) 12the compensation costs it expects to incur in the financial
FEES 6.1.17GRP
[deleted]152992
FEES 6.4.1RRP
A participant firm must pay to the FSCS a share of each management expenses levy.
FEES 6.4.2RRP
The total of all management expenses levies (taken together with the management expenses levies under the PRA Rulebook)5 attributable to a particular period of the compensation scheme may not exceed the limit applicable to that period set out in FEES 6 Annex 1 R.
FEES 6.4.4RRP
The FSCS must ensure that each participant firm's share of a management expenses levy separately identifies the firm's share of the base costs levy and1specific costs levy .11
FEES 6.4.5RRP
Subject to3FEES 6.3.22 R, the FSCS must calculate a participant firm's share of a base costs levy by:33(1) for recognised investment exchanges, providing for £1,000 per RIE for each financial year of the compensation scheme (other than in the financial year in which the recognised investment exchange becomes a participant firm, when its share is nil);65335(2) for other participant firms:65533(a) identifying the base costs which the FSCS has incurred, or expects to incur, in the
FEES 6.4.6ARRP
4The FSCS must allocate, and calculate a participant firm’s share of, a8specific costs levy in the same way as for a compensation costs levy (see FEES 6.5).8(1) [deleted]8(2) [deleted]85
FEES 6.4.8RRP
[deleted]865
FEES 6.4.10GRP
[deleted]8517991
FEES 6.4.10ARRP
[deleted]8
FEES 6.4.10BGRP

[deleted]8

55
FEES 6.7.1RRP
A participant firm that is not within FEES 6.7.-1R,6 must pay its share of any levy made by the FSCS in one payment.6
FEES 6.7.4RRP
.[deleted]6
FEES 6.7.6RRP
If a firm ceases to be a participant firm or carry out activities within one or more classes54 part way through a financial year6 of the compensation scheme:44(1) it will remain liable for any unpaid levies which the FSCS has already made on the firm; and41(2) the FSCS may make one or more levies4 upon it (which may be before or after the firm5 has ceased to be a participant firm or carry out activities within one or more classes5,4 but must be before it ceases to be an authorised
FEES 6.5.2-ARRP
12The FSCS must allocate any compensation costs levy:(1) first, to the relevant classes (other than the deposit acceptors’ contribution class)15 in proportion to the amount of compensation costs arising from, or expected to arise from, claims in respect of the different activities for which firms in those classes have permission up to the levy limit of each relevant class15; and(1A) next, amongst the categories (if any) within each class:15(a) in proportion to the categories’
FEES 6.5.2AGRP
4The use made by FSCS of borrowing facilities to provide liquidity until the next levy does not affect the attribution of compensation costs, nor the10 allocation of compensation cost levies; the allocation of a compensation costs levy occurs at the time that the FSCS imposes a levy.10
FEES 6.5.5RRP
4(1) A participant firm must pay to the FSCS a share of each compensation costs levy allocated to the classes and categories15 of which it is a member10 unless either the firm is exempt under FEES 6.2 (Exemption) or the FSCS has chosen to exercise its discretion under FEES 6.3.23 R in respect of that firm.4(2) [deleted]10104
FEES 6.5.6ARRP
12The FSCS must calculate each participant firm's share of a compensation costs levy (subject to FEES 6.3.22 R (Adjustments to calculation of levy shares)) by:(1) identifying each of the relevant classes and categories15 to which each participant firm belongs, using the statement of business most recently supplied under FEES 6.5.13 R (1);(2) identifying the compensation costs falling within FEES 6.3.1R13 allocated, in accordance with FEES 6.5.2-AR13, to the classes and categories15
FEES 6.5.9RRP

A firm or a recognised investment exchange14 which becomes a participant firm part way through a financial year13 of the compensation scheme will not be liable to pay a share of a compensation costs levy or specific costs levy15 made in that year.4

[Note: since a firm that becomes a participant firm in the course of a financial year of the compensation scheme will already be obtaining a discount in relation to the base costs levy through the modified fee provisions of FEES 4.2.7ER, no rule is necessary in FEES 6 for discounts on the base costs levy.]15

FEES 6.5A.1RRP
The FSCS must allocate a compensation costs levy or specific costs levy, which has been allocated to the retail pool (under FEES 6.5.2-AR(2) or FEES 6.4.6AR32):(1) to classes whose levy limit3 has not been reached as at the date of the levy;(2) in proportion to the relative sizes of the levy limits3 of the classes in (1) and up to those levy limits32; and(3) in accordance with the table in FEES 6 Annex 2R; and32(4) a class’s share of a levy allocated to the retail pool must be
FEES 6.5A.2RRP
[deleted]322
FEES 6.5A.3GRP
4[deleted]
FEES 6.5A.5RRP
When the FSCS allocates excess compensation costs levies or specific costs levies under FEES 6.5A.1 R or any levy imposed under FEES 6.5.2-AAR(4)5, a class to which part of the excess is allocated (a "receiving class") may, as a result of that allocation, itself reach its limit. In that case, the FSCS must apply FEES 6.5A.1 R or FEES 6.5.2-AAR5 so that any resulting excess levy beyond the limit of the receiving class is allocated amongst the remaining classes whose limits have
FEES 2.3.1RRP
If it appears to the FCA or the FSCS (in relation to any FSCS levy only) that in the exceptional circumstances of a particular case, the payment of any fee, FSCS levy, FOS levy, 9SFGB levy, TPR SFGB levy or TPR DA levy7 would be inequitable, the FCA or the FSCS as relevant, may (unless FEES 2.3.2BR applies) reduce or remit all or part of the fee or levy in question which would otherwise be payable.541041023410233685410410234101
FEES 2.3.2RRP
If it appears to the FCA or the FSCS (in relation to any FSCS levy only) that in the exceptional circumstances of a particular case to which FEES 2.3.1R does not apply, the retention by the FCA, the FSCS, or the CFEB, as relevant, of a fee, FSCS levy, FOS levy, CFEB levy, SFGB levy, TPR SFGB levy or TPR DA levy7 which has been paid would be inequitable, the FCA, the FSCS or the CFEB, may (unless FEES 2.3.2BR applies) refund all or part of that fee or levy.54104102341052341033
FEES 2.3.2BRRP
1The FCA5or the FSCS2may not consider a claim under FEES 2.3.1 R and/or FEES 2.3.2 R to reduce, remit or refund any overpaid amounts paid by a fee or levy2 payer in respect of a particular period, due to a mistake of fact or law by the fee or levy2 payer, if the claim is made by the fee or levy2 payer more than 2 years after the beginning of the period to which the overpayment relates.
FEES 6.4A.1RRP
1A participant firm (but not a recognised investment exchange)2 must pay to the FSCS a share of each MERS levy.
FEES 6.4A.2RRP
The FSCS can impose a MERS levy only if the FSCS has tried its best and has failed to obtain reimbursement of those expenses from the manager of the relevant compensation scheme.
FEES 6.4A.3RRP
The FSCS must calculate a participant firm's share of a MERS levy on a reasonable basis.
FEES 2.2.1RRP
If a person does not pay the total amount of a periodic fee, FOS levy, or share of the FSCS levy, CFEB levy or SFGB levy, TPR SFGB levy or TPR DA levy19 before the end of the date on which it is due, under the relevant provision in FEES 4, 4A, 5, 6, 7, 7A, 7C or 7D19 that person must pay an additional amount as follows:343297231861820222661820(1) if the fee was not paid in full before the end of the due date, an administrative fee of £250; plus(2) interest on any unpaid part of
FEES 2.2.2GRP
The FCA, (for FCA and PRA periodic fees, FOS and FSCS levies, 21SFGB levies, TPR SFGB levies and a TPR DA levy19), expects to issue invoices at least 30 days before the date on which the relevant amounts fall due. Accordingly it will generally be the case that a person will have at least 30 days from the issue of the invoice before an administrative fee becomes payable.2222221820672311117232
FEES 2.2.3GRP
(1) Paragraph15 23(8) of Schedule 1ZA of the Act permits the FCA to recover fees (including fees relating to payment services, the issuance of electronic money, 17CBTL firms, data reporting services providers,17designated credit reference agencies, designated finance platforms16 and, where relevant, FOS levies, 21SFGB levies, TPR SFGB levies and a TPR DA levy19).141820(2) Section 213(6) of the Act permits the FSCS to recover shares of the FSCS levy payable, as a debt owed to the
FEES 2.2.4GRP
In addition, the FCA may be entitled to take regulatory action in relation to the non-payment of fees, FOS levies, 21SFGB levies, TPR SFGB levies and a TPR DA levy19. The FCA may also take regulatory action in relation to the non-payment of a share of the FSCS levy, after reference of the matter to the FCA by the FSCS. What action (if any) that is taken by the FCA will be decided upon in the light of the particular circumstances of the case.1366618201367237236136723672313
FEES 2.1.1RRP
621Except to the extent referred to in FEES 2.1.1A R, this1621120 chapter applies to every person who is required to pay a fee or share of a levy to the FCA12, FOS Ltd or FSCS, as the case may be, by a provision of the Handbook.
FEES 2.1.4GRP
The purpose of this chapter is to set out the general provisions applicable to those who are required to pay fees or levies to the5FCA12or a share of the FSCS levy.621562156
FEES 2.1.5GRP
(1) The following enable the FCA to charge fees to cover its costs and expenses in carrying out its functions:13(a) paragraph 23 of Schedule 1ZA of the Act;13(b) regulation 92 of the Payment Services Regulations;13(c) regulation 59 of the Electronic Money Regulations;13(d) article 25(a) of the MCD Order;1513(e) regulation 21 of the Small and Medium Sized Businesses (Credit Information) Regulations. 13(f) regulation 18 of the Small and Medium Sized Business (Finance Platforms)
FEES 2.1.7GRP
The key components of the FCA12fee mechanism (excluding the FSCS5levy, the FOS5 levy and case fees16 which are dealt with in FEES 5 and16FEES 616)5 are:55555(1) a funding requirement derived from:(a) the FCA’s12financial management and reporting framework;(b) the FCA’s12budget; and(c) adjustments for audited variances between budgeted and actual expenditure in the previous accounting year, and reserves movements (in accordance with the FCA’s12reserves policy);(2) mechanisms for
FEES 6.2.1ARRP
(1) 3Except as set out in (3), a participant firm which does not conduct business in respect of which the FSCS may pay compensation4 and has no reasonable likelihood of doing so is exempt from a specific costs levy, or a compensation costs levy, or both, provided that:(a) it has notified the FSCS in writing that those conditions apply; and(b) the conditions in fact continue to apply.(2) The exemption takes effect from the date on which the notice was received by the FSCS, subject
FEES 1.1.1GRP
(1) FEES applies to all persons required to pay a fee or levy under a provision of the Handbook. The purpose of this chapter is to set out to whom the rules and guidance in FEES apply. 30(2) FEES 2 (General Provisions) contains general provisions which may apply to any type of fee payer.30(3) FEES 3 (Application, Notification and Vetting Fees) covers one-off fees payable on a particular event for example:3330(a) 33various application fees (including those in relation to authorisation,
FEES 6.6.1RRP
[deleted]642253411