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FEES 2.1 Introduction

Application

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 FCA 12, FOS Ltd or FSCS, as the case may be, by a provision of the Handbook.

FEES 2.1.1ARRP

621This chapter does not apply in relation to:8

8
  1. (1)

    FEES 5.5B23; or

    8
  2. (2)

    FEES 5 Annex 2R; or8

  3. (3)

    FEES 5 Annex 3R; or8

  4. (4)

    a PSR fee8; or9

  5. (5)

    [deleted]16

    91010
  6. (6)

    [deleted]16

    1011
  7. (7)

    11the FOS ADR levy.

FEES 2.1.2RRP

FEES 2.2.1R does not apply in respect of any fee payable under FEES 3 (Application, notification and vetting fees).

FEES 2.1.3GRP

The provisions for late payments in FEES 2.2.1R do not apply to fees payable under FEES 3 as applications, notifications and requests for vetting are generally regarded as incomplete until the relevant fee is paid.

Purpose

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 the5FCA 12or a share of the FSCS levy.

621562156
FEES 2.1.5GRP
  1. (1)

    The following enable the FCA to charge fees to cover its costs and expenses in carrying out its functions:13

    1. (a)

      paragraph 23 of Schedule 1ZA of the Act;13

    2. (b)

      regulation 92 of the Payment Services Regulations;13

    3. (c)

      regulation 59 of the Electronic Money Regulations;13

    4. (d)

      article 25(a) of the MCD Order;15

      13
    5. (e)

      regulation 21 of the Small and Medium Sized Businesses (Credit Information) Regulations. 13

    6. (f)

      regulation 18 of the Small and Medium Sized Business (Finance Platforms) Regulations;15

      14
    7. (g)

      regulation 40 of the DRS Regulations; and15

    8. (h)

      paragraph 25 of the Schedule 1 to the MiFI Regulations.15

  2. (2)

    The corresponding provisions for the FSCS levy, FOS levies, and CFEB levies are set out in FEES 6.1, FEES 5.2 and FEES 7.1.4G respectively.13

  3. (3)

    Case fees payable to the FOS Ltd are set out in FEES 5.5B.13

  4. (4)

    Fee-paying payment service providers, fee-paying electronic money issuers, CBTL firms, designated finance platforms14 and designated credit reference agencies are not required to pay the FSCS levy but are liable for FOS levies.13

218218273227221818556215555621222222227224
FEES 2.1.5AGRP

3Regulation 92 of the Payment Services Regulations and regulation 59 of the Electronic Money Regulations each provide7 that the functions of the FCA18 under the respective7 regulations are treated for the purposes of paragraph 23 of Schedule 1ZA18 to the Act as functions conferred on the FCA18 under the Act. Paragraph 23(7) 22 however, has not been included 22.7This is 22the FCA's187 obligation to ensure that the amount of penalties received or expected to be received are not to be taken into account in determining the amount of any fee payable.22

71818181818222271822
FEES 2.1 5BGRP

22Article 25 of the MCD Order provides that the functions under the MCD Order are to be treated for the purposes of paragraph 23 of Schedule 1ZA to the Act as functions conferred on the FCA under the Act.

FEES 2.1.5CGRP
  1. (1)

    13The FCA also has a fee-raising power as a result of:14

    1. (a)

      regulation 21 of the Small and Medium Sized Business (Credit Information) Regulations;15

      14
    2. (b)

      regulation 18 of the Small and Medium Sized Business (Finance Platforms) Regulations;15

      14
    3. (c)

      regulation 40 of the DRS Regulations; and15

    4. (d)

      paragraph 25 of the Schedule 1 to the MiFI Regulations.15

  2. (2)

    The FCA’s functions under these regulations are treated as functions conferred on the FCA under the Act for the purposes of its fee-raising power in paragraph 23 of Schedule 1ZA to the Act or as if they had similar effect for these purposes15.

FEES 2.1.6GRP

The FCA’s 12fees payable will vary from one fee year18 to another, and will reflect the FCA’s 12funding requirement for that period and the other key components, as described in FEES 2.1.7G. Periodic fees, which will normally be payable on an annual basis, will provide the majority of the funding required to enable the FCA 12to undertake its statutory functions.

18181818181818
FEES 2.1.7GRP

The key components of the FCA 12fee mechanism (excluding the FSCS 5levy, the FOS5 levy and case fees16 which are dealt with in FEES 5 and16 FEES 616)5 are:

55555
  1. (1)

    a funding requirement derived from:

    1. (a)

      the FCA’s 12financial management and reporting framework;

    2. (b)

      the FCA’s 12budget; and

    3. (c)

      adjustments for audited variances between budgeted and actual expenditure in the previous accounting year, and reserves movements (in accordance with the FCA’s 12reserves policy);

  2. (2)

    mechanisms for applying penalties received during previous financial years for the benefit of fee payers;

  3. (3)

    fee-blocks, which are broad groupings of fee payers offering similar products and services and presenting broadly similar risks to the FCA’s 12regulatory objectives;

  4. (4)

    a costing system to allocate an appropriate part of the funding requirement to each fee-block; and

  5. (5)

    tariff bases, which, when combined with fee tariffs, allow the calculation of fees.

FEES 2.1.8GRP

The amount payable by each fee payer will depend upon the category (or categories) of regulated activity or exemption, or other relevant activity applicable to that person (fee-blocks). It will, in most cases, also depend on the amount of the business that person conducts in each category (fee tariffs).

FEES 2.1.9GRP

By basing fee-blocks on categories of business, the FCA 12aims to minimise cross-sector subsidies. The membership of the fee-blocks is identified in the FEES provisions relating to the type of fees concerned.

FEES 2.1.9AGRP

18PRA-authorised persons and persons seeking to become PRA-authorised persons should note that the FCA and the PRA have agreed for the FCA to act as the PRA's collection 12agent for 12PRA fees. Where applicable, both PRA and FCA fees should be paid as a single payment to the FCA, which will receive the payment in its own capacity in respect of FCA fees and in its capacity as collection 12agent for the PRA in respect of the PRA fees. References to this arrangement will be referred to in FEES where applicable.

FEES 2.1.10G

[deleted]19

19
FEES 2.1.11G

[deleted]19

77719

Method of payment

FEES 2.1.12R

17Unless FEES 2.1.13R applies, the sum payable must be paid using direct debit, credit transfer (BACS/CHAPS), or credit or debit card.

FEES 2.1.13R

17The sum payable can be paid by banker’s draft, cheque or other payable order if:

  1. (1)

    the fee or levy payer is:

    1. (a)

      unable to make a payment by any of the methods set out in FEES 2.1.12R; or

    2. (b)

      permitted to make a paper application rather than an online application for a Part 4A permission in respect of credit-related regulated activities only or a variation of its Part 4A permission to add a credit-related regulated activity; or

  2. (2)

    upon the fee or levy payer’s request, the FCA agrees that, in the exceptional circumstances of a particular case, requiring payment via any method set out in FEES 2.1.12R would be inequitable.

FEES 2.1.14G

17If FEES 2.1.13R applies to a fee or levy payer, that fee or levy payer would be expected to notify the FCA of these circumstances in advance of making its payment (and, in any event, no less than 7 days before the date on which the application for a Part 4A permission or the variation of a Part 4A permission is made) unless such notification is impossible in the circumstances – for example, if there is a sudden technological failure.