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FEES 13.1 Application and purpose


FEES 13.1.1 R

1This chapter applies to every person that is in activity group CC1 (Credit-related regulated activities with limited permission) or CC2 (Credit-related regulated activities).


FEES 13.1.2 G

The purpose of this chapter is to set out the requirements on the persons listed in FEES 13.1.1R to pay the annual IML levy to fund the costs of taking action against illegal money lending.

FEES 13.1.3 G

Section 333S of the Act (Financial assistance for action against illegal money lending) provides that the Treasury may make grants or loans, or give other forms of financial assistance, to persons for the purpose of taking action against illegal money lending.

FEES 13.1.4 G

Section 333T of the Act (Funding of action against illegal money lending) requires the Treasury to notify the FCA of the amount of the Treasury’s illegal money lending costs. The FCA must make rules requiring authorised persons, or any specified class of authorised person, to pay to the FCA the specified amounts or amounts calculated in a specified way, with a view to recovering the amounts notified to it by the Treasury.

FEES 13.1.5 G

FEES 13 sets out the rules referred to in FEES 13.1.4G.

FEES 13.1.6 G

The amounts to be paid under the rules may include a component to recover the expenses of the FCA in collecting the payments.

FEES 13.1.7 G

The FCA must pay to the Treasury the amounts that it receives under the IML levy apart from amounts in respect of its collection costs (which it may keep).

FEES 13.1.8 G

This chapter sets out the method by which the IML levy will be calculated. Details of the actual levy payable will vary from year to year, depending on the amount of funding provided by the Treasury for the purpose of combatting illegal money lending. These details are set out in FEES 13 Annex 1R. New details will be prepared and consulted on for each financial year.

FEES 13.2 The IML levy

Obligation to pay the IML levy

FEES 13.2.1 R

2A firm must pay each IML levy applicable to it:

  1. (1)

    in full and without deduction (unless permitted or required by a provision in FEES); and

  2. (2)

    in accordance with the provisions of FEES 4.3.6R (Time of payment) as modified by FEES 13.2.2R.

FEES 13.2.2 R
  1. (1)

    For the purposes of FEES 13.2.1R(2), FEES 4.3.6R(1C) to (1E), as applied by FEES 13.2.8R, is modified so that if a firm’s periodic fees for the previous financial year were at least £50,000, the firm must pay:

    1. (a)

      an amount equal to 50% of the IML levy payable for the previous year, by 1 April in the financial year to which the sum due under FEES 13.2.1R relates; and

    2. (b)

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

Calculation of the IML levy

FEES 13.2.3 R

The IML levy is calculated as follows:

  1. (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. (2)

    for each of those activity groups, calculate the amount payable in the way set out in FEES 13.2.4R;

  3. (3)

    add the amounts calculated under (2);

  4. (4)

    work out whether a minimum fee is payable under Part 2 of FEES 7 Annex 1R and if so how much;

  5. (5)

    add together the amounts calculated under (3) and (4);

  6. (6)

    modify the result as indicated by the tables in FEES 4.2.6R (Modifications for persons becoming subject to periodic fees during the course of a fee year) and FEES 4.2.7FR (Calculating the fee in the firm’s first year of authorisation) (if applicable);

  7. (7)

    apply any applicable payment charge specified in FEES 4.2.4R (Method of payment) to the amount in (6), provided that:

    1. (a)

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

    2. (b)

      for payment by credit transfer, the amount due is received by the FCA on or before the due date; and

  8. (8)

    make the calculation using information obtained in accordance with FEES 4.4 (Information on which fees are calculated).

FEES 13.2.4 R

The amount payable by a firm with respect to a particular activity group is calculated as follows:

  1. (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. (2)

    for a firm in activity group CC2:

    1. (a)

      up to and including £250,000 consumer credit income: £10 is the amount payable by the firm with respect to that activity group; and

    2. (b)

      over £250,000 consumer credit income: £10 + £0.2021 per £ thousand or part £ thousand of consumer credit income; and

  3. (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.

FEES 13.2.5 R

For the purposes of FEES 13.2.4R:

  1. (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:

    1. (a)

      it has reasonable grounds for believing that the costs of identifying the firm’sUK 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

    2. (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

  2. (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.

FEES 13.2.6 R

The modifications:

  1. (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. (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

FEES 13.2.7 G

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 4rules 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.

FEES 13.2.8 R

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.

FEES 13.2.9 R

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


FEES 4.2.4R

Method of payment

FEES 4.2.7GR to FEES 4.2.7KR

Calculation of periodic fee and tariff base for a firm’s second financial year

FEES 4.2.8R

How FEES 4.2.7R applies in relation to an incoming EEA firm or an incoming Treaty firm

FEES 4.2.10R

Extension of time

FEES 4.2.11R (first entry only)

Due date and changes in permission for periodic fees

FEES 4.3.7R

Group of firms

FEES 4.3.13R

Firms applying to cancel or vary permission before start of period

FEES 4.3.17R

Firms acquiring businesses from other firms

FEES 4.4.1R to FEES 4.4.6R

Information on which fees are calculated

FEES 13.2.10 G

In some cases, a FEES 4rule incorporated into FEES 13 in the manner set out in FEES 13.2.7G will refer to another rule in FEES 4 that has not been individually incorporated into FEES 13. Such a reference should be read as being to the corresponding provision in FEES 13.

FEES 13 Annex 1 Illegal money lending (IML) levy for 2017/18

FEES 13 Annex 1R R


Limited permission (fee-block CC1):

£5 flat rate

Full authorisation (fee-block CC2):

Up to £250,000 consumer credit income: 1


Over £250,000 consumer credit income:

£10 + £20.202 per £1,000