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FEES 2.1 Introduction


FEES 2.1.1 R RP

6 20Except to the extent referred to in FEES 2.1.1A R, this1620119 chapter applies to every person who is required to pay a fee or share of a levy to the appropriate regulator, FOS Ltd or FSCS, as the case may be, by a provision of the Handbook.

FEES 2.1.1A R RP

6 20This chapter does not apply in relation to:8

  1. (1)

    FEES 5.5A; or8

  2. (2)

    FEES 5 Annex 2R; or8

  3. (3)

    FEES 5 Annex 3R; or8

  4. (4)

    a PSR fee8; or9

  5. (5)

    the pensions guidance levy; or10

  6. (6)

    the pensions guidance providers’ levy; or11

  7. (7)

    11the FOS ADR levy.

FEES 2.1.2 R RP

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

FEES 2.1.3 G RP

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.


FEES 2.1.4 G RP

The purpose of this chapter is to set out the general provisions applicable to those who are required to pay fees or levies to the5appropriate regulator or a share of the FSCS levy.

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FEES 2.1.5 G RP

Paragraph 23 of Schedule 1ZA17 of2 the Act,7regulation 92 of the Payment Services Regulations, 21 regulation 59 of the Electronic Money Regulations7and article 25(a) of the MCD Order21 enable the FCA17 to charge fees to cover its costs and expenses in carrying out its functions. The corresponding provisions for the FSCS levy ,5FOS levies and CFEB levies5 are set out in FEES 6.1,5FEES 5.2 and FEES 7.1.4 G5 respectively. Case fees payable to the FOS Ltd are set out in FEES 5.5B. 21Fee-paying payment service providers, 21fee-paying electronic money issuers7 and CBTL firms21 are not required to pay the FSCS levy but are liable for FOS levies.4

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FEES 2.1.5A G RP

3Regulation 92 of the Payment Services Regulations and regulation 59 of the Electronic Money Regulations each provide7 that the functions of the FCA17 under the respective7 regulations are treated for the purposes of paragraph 23 of Schedule 1ZA17 to the Act as functions conferred on the FCA17 under the Act. Paragraph 23(7) 21 however, has not been included 21.7This is 21the FCA's177 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.21

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FEES 2.1 5B G RP

21Article 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 2.1.6 G RP

The appropriate regulator17fees payable will vary from one fee year17 to another, and will reflect the appropriate regulator's17funding 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 appropriate regulator17to undertake its statutory functions.

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FEES 2.1.7 G RP

The key components of the appropriate regulator fee mechanism (excluding the FSCS5levy, the FOS5 levy and case fees, and the CFEB levy5which are dealt with in FEES 5,5FEES 6 and FEES 7)5 are:

5 5 5
  1. (1)

    a funding requirement derived from:

    1. (a)

      the appropriate regulator's financial management and reporting framework;

    2. (b)

      the appropriate regulator's budget; and

    3. (c)

      adjustments for audited variances between budgeted and actual expenditure in the previous accounting year, and reserves movements (in accordance with the appropriate regulator's reserves 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 appropriate regulator's regulatory 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 2.1.8 G RP

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 2.1.9 G RP

By basing fee-blocks on categories of business, the appropriate regulator aims 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 2.1.9A G RP

17 PRA-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 agent in relation to the collection of PRA 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 agent for the PRA in respect of the PRA fees. References to this arrangement will be referred to in FEES where applicable.

FEES 2.1.10 G


FEES 2.1.11 G


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FEES 2.2 Late Payments and Recovery of Unpaid Fees

Late Payments

FEES 2.2.1 R RP

If a person does not pay the total amount of a periodic fee3, FOS levy, or share of the FSCS levy or CFEB levy6, before2 the end of the2 date on which it is due, under the relevant provision in FEES 4, 5, 6 or 7, 6that person must pay an additional amount as follows:

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  1. (1)

    if the fee was not paid in full before the end of the due date, an administrative fee of £250; plus

  2. (2)

    interest on any unpaid part of the fee at the rate of 5% per annum above the Official Bank Rate10 from time to time in force, accruing on a daily basis from the date on which the amount concerned became due.

FEES 2.2.2 G RP

The FCA22, (for FCA and PRA22periodic fees, FOS and FSCS levies and CFEB levies), expects11 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.

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Recovery of Fees

FEES 2.2.3 G RP

Paragraphs 23(8) of Schedule 1ZA and paragraphs 31(7) of Schedule 1ZB of the Act permit the FCA and PRA respectively to recover fees (including in respect of the FCA,11 fees relating to payment services,5 the issuance of electronic money, fees relating to CBTL firms24 and, where relevant, FOS levies and CFEB levies6), and section 213(6) permits the FSCS to recover shares of the FSCS levy payable, as a debt owed to the FCAPRA and FSCS respectively, and the FCA , PRA and FSCS, as relevant, will consider taking action for recovery (including interest) through the civil courts. 6

[Note: For the PRA version of this guidance, see this provision as it was on 31 March 2015.]12

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FEES 2.2.4 G RP

In addition, the appropriate regulator may be entitled to take regulatory action in relation to the non-payment of fees,6FOS levies and CFEB levies. The appropriate regulator6 may also take regulatory action in relation to the non-payment of FOS case fees or 723 a723 share of the FSCS levy, after reference of the matter to the6appropriate regulator by the6FSCS. What action (if any) that is taken by the appropriate regulator will be decided upon in the light of the particular circumstances of the case.

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FEES 2.3 Relieving Provisions

Remission of Fees and levies2

FEES 2.3.1 R RP

If it appears to the appropriate regulator or410 the FSCS (in relation to any FSCS levy only) 2 that in the exceptional circumstances of a particular case, the payment of any fee, FSCS levy2,3FOS levy or CFEB levy3would be inequitable, the appropriate regulator or410 the FSCS2 as relevant, may (unless FEES 2.3.2B R applies)1 reduce or remit all or part of the fee or levy in question which would otherwise be payable.

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FEES 2.3.2 R RP

If it appears to the appropriate regulator or410 the FSCS (in relation to any FSCS levy only)2 that in the exceptional circumstances of a particular case to which FEES 2.3.1R does not apply, the retention by the appropriate regulator, the FSCS,2 or the CFEB3, as relevant, of a fee, FSCS levy2,3FOS levy or CFEB levy3which has been paid would be inequitable, the appropriate regulator, the FSCS2 or the CFEB3, may (unless FEES 2.3.2B R applies)1 refund all or part of that fee or levy.

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FEES 2.3.2A G RP

1A poor estimate or forecast by a fee or levy 2payer, when providing information relevant to an applicable tariff base, is unlikely, of itself, to amount to an exceptional circumstance for the purposes of FEES 2.3.1 R or FEES 2.3.2 R. By contrast, a mistake of fact or law by a fee or levy 2payer may give rise to such a claim.

FEES 2.3.2B R RP

1The appropriate regulator or 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 2.3.3 G




FEES 2.4.1 R RP

1All fees payable or any stated hourly rate under FEES 3 (Application, notification and vetting fees),2FEES 4 (Periodic fees) and FEES 7 (The CFEB levy) 2are stated net of VAT. Where VAT is applicable this must also be included.