FEES 4.2 Obligation to pay periodic fees

General

FEES 4.2.1RRP

A person shown in column (1) of the table in FEES 4.2.11 R 34as the relevant fee payer must pay each periodic fee applicable to it, calculated in accordance with the provisions referred to in column (2) of the applicable60 table, as adjusted by any relevant provision in this chapter:

6060
  1. (1)

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

  2. (2)

    on or before the date given in column (3) of that table, unless FEES 4.2.10 R applies.

FEES 4.2.2GRP

A relevant fee payer will be required to pay a periodic fee for every year during which they have the status in column 1 of the table in FEES 4.2.11 R 3434 (or in relation to collective investment schemes, for every year during which it is a regulated collective investment scheme) subject to any reductions or exemptions applicable under this chapter. If a person is the relevant fee payer for more than one status listed in column 1 of the table in FEES 4.2.11 R 34 (or in relation to collective investment schemes, the relevant fee payer for more than one regulated collective investment scheme) he will be required to pay a fee in relation to each.

6060
  1. (2) 59

    [deleted]59

FEES 4.2.2AGRP

59A recognised body may also have obligations to pay fees to the FCA under other rules arising from legislation other than the Act. For example a recognised body may have an obligation to pay a fee as an approved operator of a relevant system under the Uncertificated Securities Regulations 1995 (SI 1995/3272).

FEES 4.2.3GRP

The FCA59 will issue invoices online53 34at least 30 days before the dates on which payments fall due under FEES 4.2.1 R.

5959
FEES 4.2.3AR

53If, in response to a request from a fee payer, the FCA issues a paper invoice, an administration charge of £50 per year will be added to the fee otherwise payable.

Method of payment

FEES 4.2.4RRP
  1. (1)

    A59 periodic fee must be paid using either direct debit, credit transfer (BACS/CHAPS), cheque, Maestro1161, Visa Debit21 or by credit card (Visa/Mastercard only). 47

    15911611
  2. (2)

    [deleted]59

    59
FEES 4.2.4ARRP

59The FCA does not specify a method of payment for a recognised body or a designated professional body.

FEES 4.2.5GRP

The FCA expects a recognised body or a designated professional body will generally pay their respective fees by electronic credit transfer.

Modifications for persons becoming subject to periodic fees during the course of a fee year59

FEES 4.2.6R

[deleted]42

FEES 4.2.7R

[deleted]42

51812996060
FEES 4.2.7AG
FEES 4.2.7BR

[deleted]42

FEES 4.2.7CG

[deleted]42

75934595959
FEES 4.2.7DR

[deleted]42

15
FEES 4.2.7ERRP
  1. (1)
    1. (a)

      42A firm (other than an ICVC, a49,or an issuer of regulated covered bonds) which becomes authorised or registered, or whose permission and/or activities is extended, during the course of the fee year must pay a fee based on its projected valuation for the first twelve months of its new business.

    2. (b)

      This is the valuation provided by the firm in the course of its application or if not provided at that time, the valuation provided subsequently48.

  2. (2)

    The calculation for the first year of authorisation or registration for:

    1. (a)

      49an ICVC 49is in FEES 4 Annex 4R Part 1; and

    2. (b)

      an issuer of regulated covered bonds is in FEES 4 Annex 11R Part 4.

Calculating the fee in the firm’s first year of authorisation

FEES 4.2.7FRRP

42(1)

Identify the tariff rate or rates which will be relevant to the firm as a result of its new or extended permission; and then

(2)

apply the formula (A+B+C) x D, where:

A = the amount arrived at by applying the tariff rates to the firm’s projected valuation for the first twelve months48 of its48 new business, as provided by it in accordance with FEES 4.2.7ER48;

B = the A.0 minimum fee, unless already paid;

C = any fee that becomes due in AP.0 following the calculation of A; and

D = the number of calendar months (inclusive) between the calendar month during which the firm received its new or extended permission and the last calendar month of that fee year ÷ 12.

Calculating fees in the second fee-year where the firm received permission between 1 January and 31 March in its first fee year

FEES 4.2.7GRRP

42When a firm receives permission between 1 January and 31 March, its fee for the following fee year starting 1 April will be calculated from:48

  1. (a)

    48the projected valuation for the first twelve months of its new business that it provided in accordance with FEES 4.2.7ER; or

  2. (b)

    48an annualised figure based on actual data provided by 30 April in the fee year following obtaining its new or extended permission.

48If the annualised tariff base figure provided under (b) is a cumulative measure like income, covering the full year, it must apply the formula (A÷B) x 12, where:

48A = the total income from the date the new or extended permission was obtained up to the firm’s financial year end or 31 March (whichever is sooner) of its first fee year, calculated according to the relevant rules; and

48B = the number of months in the period referred to in A.

48Where the measure is not cumulative (e.g. the number of traders for fee-block A10), the firm must use the figure as at the firm’s financial year end or 31 March (whichever is sooner) of its first fee year, calculated in accordance with the relevant rules. If trading has not commenced by the applicable date the figure is nil.

Calculating all other fees in the second and subsequent years of authorisation where a full year of tariff data is not available

FEES 4.2.7HRRP

42If it can, a firm must provide data from a complete period (as specified in FEES 4 Annex 1AR Part 5 or FEES 4 Annex 11R Part 4) that begins on or after the date that the firm obtained the relevant permissions to which the tariff base relates.

FEES 4.2.7IRRP

42If a firm does not have sufficient tariff data to enable the periodic fees calculation to be made in respect of that fee year, it must calculate an annualised figure based on actual data where possible. If the tariff base is a cumulative measure like income, covering the full year, it must apply the formula (A÷B) x 12, where:

A = the total income from the date of authorisation up to the firm’s financial year end or 31 December (whichever is sooner), calculated according to the relevant rules; and

B = the number of months in the period referred to in A.

FEES 4.2.7JGRP

42For example, suppose the tariff data for a particular permission is based on income for the financial year ending during the calendar year ending 31 December before the relevant fee year starting the following April. A firm is authorised in October and its financial year ends in June. By April, it will not have been able to report on the basis of its financial year. The value of A would therefore cover the period from October to December and the value of B would be two i.e. November and December.

If the firm was authorised in June and its financial year ended in October, then the value of A would cover June to October and the value of B would be four i.e. July to October.

FEES 4.2.7KRRP

42Where the measure is not cumulative (e.g. the number of traders for fee-block A10), the firm must use the figure relating to the valuation date specified in FEES 4 Annex 1R Part 548 (e.g. 31 December for A10)48. Table A sets out the reporting requirements for the key fee-blocks when full48 actual data is not available:

Table A: calculating tariff data for second and subsequent years of authorisation when full trading figures are not available

Fee-block

Tariff base

Calculation where trading data are not available

A1. Deposit acceptors

Average MELS for October - December

Use data available at 31 December or, if trading has not commenced by 31 December, use nil48.

A2. Home finance providers and administrators

Number of relevant contracts entered into or being administered in the twelve months up to 31 December

Apply the formula (A÷B) x 12 to arrive at an annualised figure.

A3. Insurers - general

Gross written premium for fees purposes (GWP) 43for the financial year ended in the calendar year ending 31 December and best estimate liabilities for fees purposes (BEL) 43 valued at the end of the financial year

GWP 43 – apply the formula (A÷B) x 12 to arrive at an annualised figure.

BEL – use 43 data at valuation date or, if trading has not commenced by then, use nil48.

A4. Insurers - life

Gross written premium for fees purposes (GWP) 43 for the financial year ended in the calendar year ending 31 December and best estimate liabilities for fees purposes (BEL) 43 valued at the end of the financial year

A5. Managing agents at Lloyd’s

Active capacity in respect of the underwriting year at the beginning of the period to which the fee relates

Not applicable.

A6. The Society of Lloyd’s

Bespoke fee

Not applicable.

A7. Portfolio managers

Funds under management valued at 31 December

Use data as at 31 December or, if trading has not commenced by 31 December, use nil48.

A9. Managers and depositaries of investment funds, and operators of collective investment schemes or pension schemes

Annual gross income for the financial year ended in the calendar year ending 31 December

Apply the formula (A÷B) x 12 to arrive at an annualised figure.

A10. Firms dealing as principal

Number of traders as at 31 December

Use data as at 31 December or, if trading has not commenced by 31 December, use nil48.

A13. Advisors, arrangers, dealers or brokers

Annual income for the financial year ended in the calendar year ending 31 December

Apply the formula (A÷B) x 12 to arrive at the annualised figure

A14. Corporate finance advisers

A18. Home finance providers, advisers and arrangers

A19. General insurance distribution44

A21. Firms holding client money or assets, or both

The highest amount of client money and the highest amount of custody assets held over the 12 months ending 31 December

The highest amount of client money and/or custody assets over the period between the date of authorisation and 31 December or, if trading has not started, use nil48.

56A.23

Annual income for the financial year ended in the calendar year ending 31 December

Apply the formula (A÷B) x 12 to arrive at the annualised figure.

B. Market operators,41 MTF operators and OTF operators41

Annual income for the financial year ended in the calendar year ending 31 December54

Apply the formula (A÷B) x 12 to arrive at the annualised figure.54

B. Service companies

Annual income for the financial year ended in the calendar year ending 31 December

Apply the formula (A÷B) x 12 to arrive at the annualised figure.

B. Regulated benchmark45 administrators

Annual income for the financial year ended in the calendar year ending 31 December39

Apply the formula (A÷B) x 12 to arrive at the annualised figure.39

B. Recognised investment exchanges

Annual income for the financial year ended in the calendar year ending 31 December39

Apply the formula (A÷B) x 12 to arrive at the annualised figure.39

B. Recognised auction platforms55

49

Flat fee55

49

Not applicable55

49

B. Recognised overseas investment exchanges

Flat fee

Not applicable.

CC1. Credit-related regulated activities with limited permission

Annual income for the financial year ended in the calendar year ending 31 December

Apply the formula (A÷B) x 12 to arrive at an annualised figure.

CC2. Credit related regulated activities

40

40

40

G.2 Payment services institutions – deposit acceptors

See A1 deposit acceptors

G.3. Large payment services institutions

Relevant income

Apply the formula (A÷B) x 12 to arrive at an annualised figure.

G.4 Small payment institutions

Flat fee

Not applicable.

G.5 Other payment institutions

Relevant income

Apply the formula (A÷B) x 12 to arrive at an annualised figure.

G.10 Large electronic money institutions

Average outstanding e-money over 12 months ending 31 December

Average over the period from authorisation to 31 December.

G.11 Small electronic money institutions

Flat fee

Not applicable.

G.15 Issuer of regulated covered bonds

Value as at 31 December

Not applicable.

G.20 Consumer buy-to-let (CBTL) lender

Flat fee

Not applicable.

G.21 CBTL adviser and arranger

FEES 4.2.8RRP

49 For payment services and electronic money issuance, 12the adjustment only applies to the business to which the calculation made in FEES 4.3.12A R relates. 9

4

Fee payers ceasing to hold relevant status or reducing the scope of their permission after start of relevant period

FEES 4.2.9GRP

The FCA 34 will not rebate or 57 refund periodic fees if, after the start of the period to which they relate:

  1. (1)

    a fee payer ceases to have the status set out in column (1) of the table in FEES 4.2.11 R34; or

    60
  2. (2)

    a firm reduces its permission or payment services activities 9so that it then falls out of the fee-block previously applied to it;9

    9

(but see FEES 2.3 (Relieving Provisions) and FEES 4.3.13 R (Firms Applying to Cancel or Vary Permission Before Start of Period)).

Extension of Time

FEES 4.2.10RRP

A person need not pay a periodic fee on the date on which it is due under the relevant provision in FEES 4.2.1 R, if:

  1. (1)

    that date falls during a period during which circumstances of the sort set out in GEN 1.3.2 R (Emergencies) exist, and that person has reasonable grounds to believe that those circumstances impair its ability to pay the fee, in which case he must pay it on or before the fifth business day after the end of that period; or

  2. (2)

    unless FEES 4.3.6R (3), 9 FEES 4.3.6R (4) or FEES 4.3.6R (4A)9 (Time and method for payment) applies, that date would otherwise fall on or before the 30th day after the date on which the FCA (in its own capacity or in its capacity as collection 34agent for the PRA)59 has sent written notification to that person of the fee payable on that date, in which case he must pay on or before the 30th day after the date on which the FCA59 sends the notification.

    95959
FEES 4.2.11RRP

Table of periodic fees payable to the FCA60

60

1 Fee payer

2 Fee payable

3 Due date

4 Events occurring during the period leading to modified periodic fee

Any firm (except an ICVC49)

25

As54 specified in FEES 4.3.1 R in relation to FEES 4 Annex 2AR and FEES 4 Annex 11 R6054

373737

(1) Unless (2) applies54, on or before the relevant dates specified in FEES 4.3.6 R.12

(2) If54 an event specified in column 4 occurs during the course of a fee year, 30 days after the occurrence of that event, or if later the dates specified in FEES 4.3.6 R.754

77775959414141

Firm receives permission, or becomes authorised or registered under the Payment Services Regulations, article 8 of the MCD Order 32, the DRS Regulations 41 or the Electronic Money Regulations12;9 or firm 9extends permission or its payment service activities916

629

Persons who hold a certificate issued by the FCA59 under article 54 of the Regulated Activities Order (Advice given in newspapers etc.)

59

£1,15151

46314031

(1) Unless (2) applies, on or before 1 August or, if later, within 30 days of the date of the invoice23

(2) If an event in column 4 occurs,52

during the course of a fee year,59 30 days after the occurrence of that event.51

2359

Certificate issued to person by the51 FCA59 under article 4054 of the Regulated Activities Order46

59

Any manager of an AUT23;

23

In relation to each unit trust the amount specified in part 1 of 25 FEES 4 Annex 4

Authorisation order is made in relation to the relevant scheme24

24Any authorised fund manager of an authorised contractual scheme;

In relation to each authorised contractual scheme the amount specified in part 1 of25 FEES 4 Annex 4

Any ACD of an ICVC; and

In relation to each ICVC,25 the amount specified in part 1 of25 FEES 4 Annex 4

Persons who, under the constitution or founding arrangements of a recognised scheme, are 33responsible for the management of the property held for or within the scheme;

In relation to each recognised scheme the amount specified in part 1 of25 FEES 4 Annex 4

The relevant scheme becomes a recognised scheme25

Not applicable

UK AIFM49 of an LTIF49

33

In relation to each LTIF49 the amount specified in part 1 of FEES 4 Annex 433

(1) Unless (2) applies, on or before 1 August or, if later, within 30 days of the date of the invoice.33

(2) If an event in column 4 occurs during the course of a fee year, 30 days after the occurrence of that event.33

The LTIF49 is authorised by the FCA under the LTIF Regulation49

33

Designated professional body

FEES 4 Annex 5

On or before the relevant dates specified in FEES 4.3.6 R23

23

Not applicable

UK recognised body

FEES 4 Annex 6, part 1for a UK RIE; and55

FEES 4 Annex 6R, part 1A for a UK RIE that is also a RAP55

601349

(1) On or before the relevant dates specified in FEES 4.3.6 R23

(2) If the event in column 4 occurs during the course of a fee year59, 30 days after the occurrence of that event

2359

Recognition order is made.

The modified1161 periodic fee is specified in FEES 4 Annex 6 R, Part 1.491161

116111611311611161

ROIE60

60

FEES 4 Annex 6, part 2

(1) On or before the relevant dates specified in FEES 4.3.6 R23

(2) If the event in column 4 occurs during the course of a fee year59, 30 days after the occurrence of that event.

2359

Recognition order is made.

The modified1161 periodic fee is specified in FEES 4 Annex 6, Part 2.1161

1161116111611161

A listed issuer35 (in LR) of shares and certificates representing certain securities35.

33

FEES 4 Annex 14R35

Within 30 days of the date of the invoice

Listed issuer3 (in LR) becomes subject to listing rules

3

A sponsor35

FEES 4 Annex 14R35

3110122323311210231

Within 30 days of the date of the invoice

35Approval of a35 sponsor35

141414

All non-listed issuers (in DTR) of shares and certificates representing certain securities35.

66

FEES 4 Annex 14R35

29

Within 30 days of the date of the invoice

Non-listed issuer (in DTR) becomes subject to disclosure requirements36 and transparency rules629

29Any primary information provider

FEES 4 Annex 14R35

Within 30 days of the date of the invoice

A person is approved as a primary information provider

6All firms reporting transactions in securities derivatives 10to the FCA59 in accordance with SUP 17, and market operators who provide facilities for trading in securities derivatives.10

5910

FEES 4 Annex 9 R

Within 30 days of the date of the invoice

Not applicable

15Any issuer of a regulated covered bond.

1 R

(1) Unless (2) applies, on or before the relevant dates specified in FEES 4.3.6 R

(2) If an event specified in column 4 occurs during the course of a fee year59, 30 days after the occurrence of that event or, if later, the dates specified in FEES 4.3.6 R

59

A person becomes registered as an issuer of a regulated covered bond

26(i) A non-UK AIFM49 which has notified the FCA of its intention to market an AIF in the UK under regulation 5949 of the AIFMD UK regulation and which has not ceased to market that AIF in the UK as at 1 April of the current fee year.

(ii) non-UK AIFM49 which has notified the FCA of its intention to market an AIF in the UK under regulation 58 or 59 of the AIFMD UK regulation and which has not ceased to market that AIF in the UK as at 1 April of the current fee year.

For each notification made by the AIFM of the kind specified in part 2 of FEES 4 Annex 4, the amount specified in part 2 of FEES 4 Annex 4

(1) Unless (2) applies, on or before 1 August, or, if later, within 30 days of the date of the invoice

(2) If an event in column 4 occurs during the course of a financial year, 30 days after the occurrence of that event

The FCA receives a notification to market in the UK

26A small registered UK AIFM

The basic fee contained in part 3 of FEES 4 Annex 4

The AIFM is registered by the FCA under regulation 10 of the AIFMD UK regulation.

30

[deleted]41

45A third country legal representative

The tariff specified in FEES 4 Annex 15R

Payable in accordance with FEES 4.3.6R

Not applicable

45A benchmark endorser

The tariff specified in FEES 4 Annex 15R

Payable in accordance with FEES 4.3.6R

Not applicable

50Any UK-based firm registered as a credit rating agency; a trade repository; a securitisation repository or any third country firm certified as a credit rating agency or recognised as a trade repository.

The tariff specified in FEES 4 Annex 16R

Within 30 days of the date of the invoice

Not applicable

53Proxy advisor

58FEES 4 Annex 11R

Within 30 days of the date of the invoice58

Not applicable

Note: Sponsors on the list of approved sponsors as at 1 April each year will be liable for the full year's annual fee unless FEES 4.3.13 R applies.2