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FEES 4.3 Periodic fee payable by firms (other than AIFM qualifiers, ICVCs and UCITS qualifiers)13

FEES 4.3.1R

The periodic fee payable by a firm (except an AIFM qualifier,13 ICVC or a UCITS qualifier) is:

  1. (1)

    each periodic fee applicable to it calculated in accordance with FEES 4.3.3 R, using information obtained in accordance with FEES 4.4; plus7

    7
  2. (1A)

    any periodic fee applicable to it calculated in accordance with FEES 4.3.3A R using information relating to its UK business obtained in accordance with FEES 4.4 (or by other means in the case of the Bank of England); less7

  3. (2)

    any deductions from the periodic fee specified in Part 2 of FEES 4 Annex 2AR 17or Part 7 of22 FEES 4 Annex 11R17. 7

    222222
FEES 4.3.2G
  1. (1)

    The amount payable by each firm will depend upon the category (or categories) of regulated activities or payment services 7it is engaged in (fee-blocks)and whether it is issuing electronic money,10 and on the amount of business it conducts in each category (tariff base). The fee-blocks and tariffs are identified in FEES 4 Annex 1AR 17 (and guidance on calculating certain of the tariffs is at FEES 4 Annex 12 G and 17FEES 4 Annex 13G15) 17while 22 FEES 4 Annex 2AR sets 17 out the tariff rates for the relevant fee year.21 In the case of firms that provide payment services and/or issue electronic money10, the relevant fee blocks, tariffs and rates are set out in FEES 4 Annex 11R17.

    22822217
  2. (2)

    Incoming EEA firms, incoming Treaty firms,10 EEA authorised payment institutions7 and EEA authorised electronic money institutions10receive a discount to reflect the reduced scope of the appropriate regulator's responsibilities in respect of them. The level of the discount varies from fee-block to fee-block, according to the division of responsibilities between the appropriate regulator and Home state regulators for firms in each fee-block (see FEES 4.3.11 G,7 FEES 4.3.12 R and FEES 4.3.12A R).7

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Calculation of periodic fee (excluding fee-paying payment service providers and fee-paying electronic money issuers)10

FEES 4.3.3R

The periodic fee referred to in FEES 4.3.1 R is (except in relation to the Society,10 fee-paying payment service providers and fee-paying electronic money issuers)107 calculated as follows:

  1. (1)

    identify each of the tariffs set out in Part 1 of FEES 4 Annex 2AR 1722 which apply to the business of the firm for the period specified in that annex;

    22
  2. (2)

    for each of the applicable22 tariffs, calculate the sum payable in relation to the business of the firm for that period;

    229
  3. (3)

    add together the amounts calculated under (2)17;

    229
  4. (4)

    work out whether an A.0, or 17, CC.0 minimum fee is payable under Part 2 of FEES 4 Annex 2AR 17and if so how much (except that that minimum fee is not payable again by a firm whose permission is extended if the fee was already payable before the extension)22;9

    922
  5. (4A)

    22work out whether an AP.0 FCA prudential fee is payable under Part 2 of FEES 4 Annex 2AR and if so how much;

  6. (4B)

    [deleted] 17

    22
  7. (5)

    9add together the amounts calculated under (3), (4) and (4A) 17; and

    22
  8. (6)

    9apply any applicable payment charge specified in FEES 4.2.4 R, provided that:

    1. (a)

      for payment by direct debit, successful collection of the amount due is made at the first attempt by the FCA (in its own capacity and, if applicable, in its capacity as collection 17agent for the PRA)21; or

      21
    2. (b)

      for payment by credit transfer, the amount due is received by the FCA (in its own capacity and, if applicable, in its capacity as collection 17agent for the PRA)21 on or before the due date.

      21

    19[Note: Transitional provisions apply to FEES 4.3.3R for firms in activity groups A.3 and A.4 – see FEES TP 13]

Calculation of periodic fee for fee-paying payment service providers and fee-paying electronic money issuers107

FEES 4.3.3AR

7The periodic fee referred to in FEES 4.3.1 R in relation to fee-paying payment service providers, CBTL firms 16 and fee-paying electronic money issuers10 is calculated in accordance with FEES 4 Annex 11 R.

23

Modification for firms with new or extended permissions

FEES 4.3.4G
  1. (1)

    A firm which becomes authorised or registered 7during the course of a fee year21 will be required to pay a proportion of the periodic fee which reflects the proportion of the year for which it will have a permission or the right to provide particular payment services or the right to issue electronic money107- see FEES 4.2.5 G and FEES 4.2.6 R.

    21
  2. (2)

    Similarly a firm which extends its permission or its right to provide particular payment services 7so that its business then falls within additional fee blocks will be required to pay a further periodic fee under this section for those additional fee blocks, but discounted to reflect the proportion of the year for which the firm has the extended permission or payment services activity 7- see FEES 4.2.6 R and FEES 4.2.7 R.

  3. (3)

    These provisions apply (with some changes) to incoming EEA firms,10 incoming Treaty firms, EEA authorised payment institutions and EEA authorised electronic money institutions.10

  4. (4)

    5These provisions do not apply to a firm's periodic fees in relation to its permission for operating a multilateral trading facility obtained from the FCA21 during the course of a fee year.21

    2121

Amount payable by the Society of Lloyd's

FEES 4.3.5R

The periodic fee referred to in FEES 4.3.1 R in relation to the Society is specified against its name in 22 FEES 4 Annex 2AR 17.

22

Time of payment

FEES 4.3.6R
  1. (1)

    [deleted]17

    222212112222111122
  2. (1A)

    [deleted] 17

    22
  3. (1B)

    [deleted] 17

    22
  4. (1C)

    17If a person meets either of the conditions in (1D) it must pay the FCA the fee in (1E).

  5. (1D)

    17A person meets the conditions referred to in (1C) if:

    1. (a)

      its periodic fee for the previous fee year was at least £50,000 and it is:

      1. (i)

        an FCA-authorised person; or

      2. (ii)

        a designated professional body; or

      3. (iii)

        a recognised investment exchange; or

      4. (iv)

        a regulated covered bond issuer; or

    2. (b)

      it is a PRA-authorised person and its combined FCA and PRA periodic fees for the previous fee year were at least £50,000.

  6. (1E)

    17The fee in (1C) is:

    1. (a)

      an amount equal to 50% of the FCA periodic fee payable for the previous fee year by:

      1. (i)

        118 April; or

      2. (ii)

        if later, within 30 days of the date of the invoice, in the fee year to which the sum due under FEES 4.2.1R relates; and

    2. (b)

      the balance of the FCA periodic fee due for the current fee year by:

      1. (i)

        1 September; or

      2. (ii)

        if later, within 30 days of the date of the invoice, in the fee year to which that sum relates.

    [Note: If the firm is a PRA-authorised person that meets the condition at FEES 4.3.6R(1)(D)(b), the firm will also pay its PRA periodic fees in two tranches as specified in the Fees Part of the PRA Rulebook. The FCA, acting as the PRA’s collection agent, will collect these fees.]

  7. (2)

    If the firm's, designated professional body's, recognised investment exchange's, 12or regulated covered bond issuer's 11periodic fee for the previous fee year21 was less than £50,000, it11 must pay the periodic fee due in full by 1 August or, if later, within 30 days of the date of the invoice22 in the fee year21 to which that sum relates.

    211121
  8. (3)

    If a firm has applied to cancel its Part 4A permission21 in the way set out in SUP 6.4.5 D (Cancellation of permission), or its status as a payment institution under regulation 10 of the Payment Services Regulations (Cancellation of authorisation) or as regulation 10 is applied by regulation 14 of the Payment Services Regulations (Supplementary provisions), or its status as an electronic money issuer under regulation 10 of the Electronic Money Regulations (Cancellation of authorisation) or as regulation 10 is applied by regulation 15 of the Electronic Money Regulations (Supplementary provisions), 10or its registration as a CBTL firm under article 13(c) MCD Order 16then (1) and (2) do not apply but it must pay the total amount due when the application is made.

    21
  9. (4)

    If the FCA 17 has exercised its own-initiative powers to cancel a firm's2 Part 4A permission21, then (1) and (2) do not apply but the firm must pay the total amount due immediately before the cancellation becomes effective.

    2121221
  10. (4A)

    If the FCA has cancelled a firm's authorisation or registration under regulation 10 of the Payment Services Regulations or regulation 10 of the Electronic Money Regulations 10 or its registration under regulation 10 as applied by regulation 14 of the Payment Services Regulations or its registration under regulation 10 as applied by regulation 15 of the Electronic Money Regulations, or its registration under article 13 (except under article 13(c)) of the MCD Order 1610 then (1) and (2) do not apply but the firm must pay the total amount due immediately before the cancellation becomes effective.7

  11. (5)

    [deleted]22

    622
  12. (5A)

    [deleted] 17

    14
  13. (6)

    5Paragraphs (1) and (2) do not apply to any periodic fee in relation to a firm's permission for operating a multilateral trading facility and such a fee is not taken into account for the purposes of the split in (1). Instead any fee for this permission is payable on the date specified in FEES 4 Annex 10 (Periodic fees for MTF operators).

Groups of firms

FEES 4.3.7R

A firm which is a member of a group may pay all of the amounts due from other firms in the same group under FEES 4.2.1 R, if:

  1. (1)

    it notifies the FCA (in its own capacity and, if applicable, in its capacity as collection 17agent for the PRA)21 in writing of the name of each other firm within the group for which it will pay; and

    21
  2. (2)

    it pays the fees, in accordance with this chapter, as a single amount as if that were the amount required from the firm under FEES 4.2.1 R.

FEES 4.3.8G

A notification under FEES 4.3.7R (1) should be made in accordance with SUP 15.7 (Form and method of notification).

FEES 4.3.9G

If the payment made does not satisfy in full the periodic fees payable by all of the members of the group notified to the FCA21 under FEES 4.3.7 R, the FCA (in its own capacity and, if applicable, in its capacity as collection 17agent for the PRA)21 will apply the sum received among the firms which have been identified in the notification given under FEES 4.3.7R (1) in proportion to the amounts due from them. Each firm will remain responsible for the payment of the outstanding balance attributable to it.

2121
FEES 4.3.10G

If a firm pays its fees through an agent outside the scope of FEES 4.3.7 R, the firm is responsible for ensuring that the FCA (in its own capacity and, if applicable, in its capacity as collection 17agent for the PRA)21 is informed that the sum being paid is for that firm's periodic fees.

21

Incoming EEA firms, incoming Treaty firms, EEA authorised payment institutions and EEA authorised electronic money institutions107

FEES 4.3.11G
  1. (1)

    The FCA 17recognises that its responsibilities in respect of an incoming EEA firm, an incoming Treaty firm, an EEA authorised payment institution or an EEA authorised electronic money institution are reduced compared with a firm which is incorporated in the United Kingdom.17

  2. (2)

    Accordingly the periodic fees which would otherwise be applicable to incoming EEA firms, incoming Treaty firms, EEA authorised payment institutions and EEA authorised electronic money institutions are reduced.17

77107107710710
FEES 4.3.12R

For an incoming EEA firm, (excluding MTF operators), 5 or an incoming Treaty firm, the calculation required by FEES 4.3.3 R is modified as follows:

  1. (1)

    the tariffs set out in 22 Part 1 of FEES 4 Annex 2AR 17 are applied only to the regulated activities of the firm which are carried on in the United Kingdom; and

    22
  2. (2)

    those tariffs are modified in accordance with Part 3 of FEES 4 Annex 2AR17.

    22
FEES 4.3.12AR

10For:

10
  1. (-1)
    1. (a)

      a full credit institution which is a fee-paying payment service provider and an EEA firm; or

    2. (b)

      a full credit institution which is a fee-paying electronic money issuer and an EEA firm; or

    3. (c)

      an EEA authorised payment institution; or

    4. (d)

      an EEA authorised electronic money institution;

    the calculation required by FEES 4.3.3A R is modified as follows:

  2. (1)

    the tariffs set out in Part 5 of FEES 4 Annex 11 are only applied to the payment services or electronic money issuance10of the firm carried on from an establishment in the United Kingdom, including any payment services carried on10 through any of its agents established in the United Kingdom; and

    1010
  3. (2)

    those tariffs are modified in accordance with Part 7 of FEES 4 Annex 11.

Firms Applying to Cancel or Vary Permission Before Start of Period

FEES 4.3.13R
  1. (1)

    If:

    1. (a)

      a firm makes an application to vary its permission (by reducing its scope), or cancel it, in the way set out in SUP 6.3.15 D (3) (Variation of permission) and SUP 6.4.5 D (Cancellation of permission), or applies to vary (by reducing its scope) or cancel its authorisation or registration (regulation 8 and 10(1) of the Payment Services Regulations including as applied by regulation 14 of the Payment Services Regulations) or applies to cancel its authorisation or registration (regulation 10 and 12 of the Electronic Money Regulations including as applied by regulation 15 of the Electronic Money Regulations) or applies for revocation of its registration under article 13(c) of the MCD Order16; 107an issuer makes an application for de-listing; or a sponsor notifies the 7FCA of its intention to be removed from the list of approved sponsors; 1and

    2. (b)

      the firm, issuer or sponsor1 makes the application or notification 1referred to in (a) before the start of the fee year22 to which the fee relates;

      22

    FEES 4.2.1 R applies to the firm as if the relevant variation or cancellation of the firm's permission or authorisation or registration under the Payment Services Regulations, MCD Order16 or the Electronic Money Regulations10, 7 de-listing or removal from the list of approved sponsors,1 took effect immediately before the start of the fee year22 to which the fee relates.

    2322
  2. (2)

    But (1) does not apply if, due to the continuing nature of the business, the variation, cancellation, de-listing or removal1 is not to take effect on or before 30 June of the fee year to which the fee relates22.

    122
FEES 4.3.14G

Where a firm has applied to cancel its Part 4A permission, or its authorisation or registration under the Payment Services Regulations 7or the Electronic Money Regulations, 10 or its registration as a CBTL firm under article 13(c) the MCD Order, 16or the FCA 17 has exercised its own-initiative powers to cancel a firm's7 Part 4A permission or the FCA 17 has exercised its powers under regulation 10 (Cancellation of authorisation), including as applied by regulation 14 (Supplementary provisions) of the Payment Services Regulations to cancel a firm's authorisation or registration under the Payment Services Regulations or the FCA 17 has exercised its powers under regulation 10 (Cancellation of authorisation), including as applied by regulation 15 (Supplementary provisions) of the Electronic Money Regulations, 10 or the FCA has exercised its powers under article 13 (Revocation of registration), excluding article 13(c), of the MCD Order16, 7 the due dates for payment of periodic fees are modified by FEES 4.3.6R (3),7 FEES 4.3.6R (4) and FEES 4.3.6R (4A)7 respectively.

77

Firms acquiring businesses from other firms

FEES 4.3.15R

20[deleted]

FEES 4.3.16R
  1. (1)

    [deleted]9

  2. (2)

    [deleted]9

  3. (3)

    [deleted]9

FEES 4.3.17R
  1. (1)

    20This rule applies if:

    1. (a)

      a firm (A)

      1. (i)
        1. (A)

          acquires all or a part of the business of another firm (B), whether by merger, acquisition of goodwill or otherwise; and

        2. (B)

          would be required to pay a periodic fee in the fee year in which the acquisition takes place; or

      2. (ii)

        becomes authorised or registered as a result of another firm’s (B) simple change of legal status (as defined in FEES 3 Annex 1R Part 6); and

    2. (b)

      had that acquisition or simple change of legal status (or any associated cancellation) not taken place, a periodic fee would have been payable by B in that same fee year.

  2. (2)

    If, before the date of acquisition or simple change of legal status, B had paid any periodic fee that would have become payable by it in that fee year, FEES 4.2.1R and FEES 4.2.7ER to FEES 4.2.7KR will not apply to A in relation to the business of B.

  3. (3)
    1. (a)

      If, before the date of acquisition or simple change of legal status, B had not paid any periodic fee that would have become payable by it in that fee year, FEES 4.2.1R and FEES 4.2.7ER to FEES 4.2.7KR will apply to A in relation to the business of B.

    2. (b)

      Periodic fees that would have become payable in that fee year include those which may have been dis-applied under FEES 4.3.13R.

  4. (4)

    Regardless of A’s valuation date:

    1. (a)

      if the acquisition or simple change of legal status takes place before B’s valuation date, then A must report the tariff data for, and pay fees or levies on, the transferred business up to the date of the transfer; and

    2. (b)

      if the acquisition or simple change of legal status takes place after B’s valuation date and B has not paid the relevant fees or levies, then the data should be reported and fees be paid by A as if the transfer had taken place immediately before the valuation (if B continues to be authorised, it should strip the transferred business out of its report).