FEES 4.2 Obligation to pay periodic fees

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 applicable61 table, as adjusted by any relevant provision in this chapter:

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.

60The FCA does not specify a method of payment for a recognised body or a designated professional body.

A firm (other than an5 AIFM qualifier,18ICVC or UCITS qualifier) which becomes authorised or registered, 12or whose permission and/or payment service activities are 9extended, during the course of the fee year61 must pay a fee which is calculated by:

1. (1)

   identifying each of the tariffs set out in Part 1 of FEES 4 Annex 2AR, 34 34and/or Part 1 of61 FEES 4 Annex 11 as appropriate9 for the relevant fee year61 that apply to the firm only after the permission is received or extended or payment service activities are authorised or registered 12or extended or electronic money issuance activities are authorised or registered under the Electronic Money Regulations;19:27

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2. (2)

   calculating the amount for each of the applicable61 tariffs which is the higher of:

   61
   1. (a)

      any applicable minimum fee specified in relation to 28a particular tariff in FEES 4 Annex 2AR 34(but note, for the avoidance of doubt, that these are not the A.0 34minimum fees set out under Part 2 of FEES 4 Annex 2AR 34); and

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   2. (b)

      the result of applying the tariff to the projected valuation, for its first year (as provided in the course of the firm's application), of the business to which the tariff relates;

      5
3. (3)

   adding together the amounts calculated under (2)34;

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4. (4)

   working out whether an A.0 34minimum fee is payable under Part 2 of FEES 4 Annex 2AR 34(except that minimum fee is not payable again by a firm whose permission is extended if the fee was already payable before the extension);617

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5. (4A)

   working out whether an AP.0 FCA prudential fee is payable under Part 2 of FEES 4 Annex 2AR and if so how much;61

6. (4B)

   [deleted]34

   61
7. (5)

   10adding together the amounts calculated under (3), (4) and (4A) 34and then adding this sum to any applicable flat rate fee;34 and

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8. (6)

   modifying the result34 in accordance with the formula set out 19in FEES 4.2.6 R (except that FEES 4 Annex 10R19 (Periodic fees for MTF operators) deals with a firm19that receives permission for operating a multilateral trading facility or has its permission extended to include this activity during the course of the relevant fee year61 and FEES 4.2.6 R does not apply).

   61191961

1. (1)

   7This rule deals with the calculation of:

   1. (a)

      a firm's fees for its second and subsequent17 fee year.61 These are17 the 34 fee years61 following the fee year61 in which it was given permission and/or was authorised or registered 12 under the Payment Services Regulations or the Electronic Money Regulations12 or had its permission and/or payment services activities extended (the relevant permissions); and9

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   2. (b)

      the tariff base for the fee block or fee blocks that relate to each of the relevant permissions. 9

      9
2. (2)

   17The starting point for calculating the fees referred to in (1)(a) is determining whether or not the firm's tariff base for the relevant fee year61 can be calculated using data from a complete period (as specified in Part 5 of FEES 4 Annex 1AR 34or Part 4 of61 FEES 4 Annex 11 R) that begins on or after the date that the firm obtained the relevant permission to which that tariff base relates.

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   1. (a)

      If it can, the firm must use that data for calculating its tariff base.

   2. (b)

      If it cannot, the tariff base must be calculated using the projected valuations for its first year of the business to which the tariff relates (as provided in the course of the firm's application), unless (5)(b) or 5(c) applies.

3. (3)

   This rule does not apply to a firm with a permission for operating a multilateral trading facility.

4. (4)

   [deleted]61

   61
5. (5)
   1. (a)

      [deleted]

      9
   2. (b)

      If a firm:17

      17
      1. (i)

         receives a relevant permission9 between 1 April and 31 December inclusive; and

         9
      2. (ii)

         is, but for this rule, required to calculate its tariff base for that relevant permission 9by reference to the average of its modified eligible liabilities for October, November and December;

      it must calculate that tariff base as at the December before the start of the fee year61.

      61
   3. (c)

      If a firm:17

      17
      1. (i)

         is, but for this rule, required to calculate its tariff base for the relevant permission by reference to the firm's financial year ended in the calendar year ending on the 31 December before the start of the fee year61 and, since obtaining the relevant permission, the firm has yet to complete a full financial year ended in the calendar year ending on the 31 December before the start of the fee year;61 or17

         917
      2. (ii)

         is, but for this rule, required to calculate its tariff base by reference to the twelve months ending on the 31 December before the start of the fee year61 and, since obtaining the relevant permission, the firm has yet to complete a full twelve months ending on the 31 December before the start of the fee year;6117

         999999917

      it must calculate the tariff base under (d) below unless it is in its second fee year61 and was authorised between 1 January and 1 April (in which case it must use the projected valuations provided for in (2)(b) above).

   4. (d)

      If a firm satisfies either of 17the conditions in (c) it must calculate its tariff base as follows:

      1. (i)

         it must use actual data in relation to the business to which the tariff relates rather than projected valuations;

      2. (ii)

         in respect of firms satisfying condition (5)(c)(i), 17the tariff is calculated by reference to the period beginning on the date it acquired the relevant permission relating to the tariff,9 and ending on either 17the 31 December before the start of thefee year61 or, if earlier, the start date of the firm's financial year; and

         in respect of firms satisfying condition (5)(c)(ii), the tariff is calculated by reference to the period beginning on the date on which it acquired the relevant permission, and ending on the 31 December before the start of the fee year17

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      3. (iii)

         the figures are annualised by increasing them by the same proportion as the period of 12 months bears to the period starting from when the firm received its relevant 9permission to to the relevant period end date specified in (ii).

         999
   5. (e)

      Where a firm is required to use the method in (d) it must notify the FCA (in its own capacity and, if applicable, in its capacity as collection agent for the PRA)61 of this by the date specified in FEES 4.4 (Information on which Fees are calculated).

      61
   6. (f)

      Where a firm is required to use actual data under this rule FEES 4 Annex 1AR Part 5 34 and FEES 4 Annex 11 Part 4, are modified, where applicable,61 in relation to the calculation of that firm's valuation date in the fee years61 to which this rule applies.17

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15If an issuer of a regulated covered bond becomes registered after 31 December its valuation date will be calculated in the manner described in 1 R Part 4.

In relation to an incoming EEA firm or an incoming Treaty firm the modification provisions of FEES 4.2.7 R apply only in relation to the relevant regulated activities of the firm, which are passported activities or Treaty activities and which are carried on in the United Kingdom, and which are not provided on a cross border services basis.4 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

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)60 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 FCA60 sends the notification.

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