FEES 13.2 The IML levy
Obligation to pay the IML levy
Calculation of the IML levy
The IML levy is calculated as follows:
- (1)
identify whether activity group CC1 or CC2 applies to the business of the firm for the relevant period (for this purpose, the activity groups are defined in accordance with Part 1 of FEES 4 Annex 1AR);
- (2)
for each of those activity groups, calculate the amount payable in the way set out in FEES 13.2.4R;
- (3)
add the amounts calculated under (2);
- (4)
work out whether a minimum fee is payable under Part 2 of FEES 7 Annex 1R and if so how much;
- (5)
add together the amounts calculated under (3) and (4);
- (6)
modify the result as indicated by the tables in FEES 4.2.7ER5 (Modifications for persons becoming subject to periodic fees during the course of a fee year),5 FEES 4.2.7FR (Calculating the fee in the firm’s first year of authorisation), FEES 4.2.7GR (Calculating fees in the second fee-year where the firm received permission between 1 January and 31 March in its first fee-year) and FEES 4.2.7HR to FEES 4.2.7KR (Calculating all other fees in the second and subsequent years of authorisation where a full year of tariff data is not available)5 (if applicable);
- (7)
apply any applicable payment charge specified in FEES 4.2.4R (Method of payment) to the amount in (6), provided that:
- (8)
make the calculation using information obtained in accordance with FEES 4.4 (Information on which fees are calculated).
The amount payable by a firm with respect to a particular activity group is calculated as follows:
- (1)
for a firm in activity group CC1, a £5 flat rate is the amount payable by the firm with respect to that activity group;
- (2)
for a firm in activity group CC2:
- (3)
a firm in activity group CC2 must calculate its tariff base using the annual income calculation in Part 3 of FEES 4 Annex1AR and FEES 4 Annex 11BR and the valuation date requirements in Part 5 of FEES 4 Annex 1AR.
For the purposes of FEES 13.2.4R:
- (1)
a firm in activity group CC2 may apply the relevant tariff bases and rates to its 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 FEES 4 Annex 11BR are disproportionate to the difference in fees payable; and
- (b)
it notifies the FCA in writing at the same time as it provides the information concerned under FEES 4.4 (Information on which fees are calculated), or if earlier, at the time it pays the fees concerned; and
- (a)
- (2)
for a firm which has not complied with FEES 4.4.2R (Information on which fees are calculated) for this period, the IML levy is calculated using (where relevant) the valuation or valuations of business applicable to the previous period multiplied by the factor of 1.10.
The modifications:
- (1)
for incoming EEA firms and incoming Treaty firms which have established branches in the UK in Part 3 of FEES 4 Annex 2AR apply; and
- (2)
for EEA authorised payment institutions, EEA authorised electronic money institutions, and full credit institutions that are EEA firms in Part 7 of FEES 4 Annex 11R apply.
FEES 4 rules incorporated into FEES 13 by cross-reference
The Handbook provisions relating to the IML levy are meant to follow closely the provisions relating to the payment of the periodic fees in FEES 4.3.1R. In the interests of brevity, not all of these provisions are set out again in FEES 13. In some cases, certain FEES 4 rules are applied to the payment of the IML levy by individual rules in FEES 13. The rest are set out in the table in FEES 13.2.9R.
The rules set out in the table in FEES 13.2.9R and any other rules in FEES 4 included in FEES 13 by cross-reference apply to the IML levy in the same way as they apply to periodic fees payable under FEES 4.3.1R.
Table of rules in FEES 4 that also apply to FEES 13 to the extent that in FEES 4 they apply to fees payable to the FCA.
FEES 4 rules incorporated into FEES 13 |
Description |
Method of payment |
|
How FEES 4.2.7R applies in relation to an incoming EEA firm or an incoming Treaty firm |
|
Extension of time |
|
FEES 4.2.11R (first entry only) |
Due date and changes in permission for periodic fees |
Group of firms |
|
Firms applying to cancel or vary permission before start of period |
|
Information on which fees are calculated |