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

FEES 4.3.1RRP

The periodic fee payable by a firm (except an 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; less

  2. (2)

    any deductions from the periodic fee specified in Part 2 of FEES 4 Annex 2.

FEES 4.3.2GRP
  1. (1)

    The amount payable by each firm will depend upon the category (or categories) of regulated activities it is engaged in (fee-blocks), and on the amount of business it conducts in each category (tariff base). The fee-blocks and tariffs are identified in in respect of the FCA and in respect of the PRAFEES 4 Annex 1, while FEES 4 Annex 2 sets out the tariff rates for the relevant financial year.

  2. (2)

    Incoming EEA firms, and incoming Treaty firmsreceive a discount to reflect the reduced scope of the FSA'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 FSA and Home state regulators for firms in each fee-block (see FEES 4.3.11 G and FEES 4.3.12 R).

Calculation of periodic fee

FEES 4.3.3RRP

The periodic fee referred to in FEES 4.3.1 R is (except in relation to the Society) calculated as follows:

  1. (1)

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

  2. (2)

    for each of thosetariffs, calculate the sum payable in relation to the business of the firm for that period, applying any minimum fee discount as may be applicable (see FEES 4.3.16 R)9;

  3. (3)

    add together the amounts calculated under (2); and9

  4. (4)

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

    1. (a)

      for payment by direct debit, successful collection of the amount due is made at the first attempt by the FSA; or

    2. (b)

      for payment by credit transfer, the amount due is received by the FSA on or before the due date.9

Modification for firms with new or extended permissions

FEES 4.3.4GRP
  1. (1)

    A firm which becomes authorised during the course of a financial year 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 - see FEES 4.2.5 G and FEES 4.2.6 R.

  2. (2)

    Similarly a firm which extends its permission so 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 - see FEES 4.2.6 R and FEES 4.2.7 R.

  3. (3)

    These provisions apply (with some changes) to incoming EEA firms and incoming Treaty firms.

Amount payable by the Society of Lloyd's

FEES 4.3.5RRP

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

Time of payment

FEES 4.3.6RRP
  1. (1)

    If the firm's,periodic fee for the previous financial year was at least £50,000, the firm must pay:

    1. (a)

      an amount equal to 50% of the periodic fee payable for the previous year, by 30 April in the financial yearto which the sum due under FEES 4.2.1 R relates; and

    2. (b)

      the balance of the periodic fee due for the current financial year by 1 September in the financial yearto which that sum relates.

  2. (2)

    If the firm's,periodic fee for the previous financial year was less than £50,000, the firm must pay the periodic fee due in full by 1 August or, if later, within 30 days of the date of the invoice in the financial year to which that sum relates.

  3. (3)

    If a firm has applied to cancel its Part IV permission in the way set out in SUP 6.4.5 D (Cancellation of permission), then (1) and (2) do not apply but it must pay the total amount due when the application is made.

  4. (4)

    If the FSA has exercised its own-initiative powers to cancel a firm's Part IV permission in the way set out in EG 8 (Variation and cancellation of permission on the FSA's own initiative and intervention against incoming firms)2, then (1) and (2) do not apply but the firm must pay the total amount due immediately before the cancellation becomes effective.

    2
  5. (5)

    4Paragraphs (1) and (2) do not apply to any Solvency 2 fee (as defined in Part 1 of FEES 4 Annex 2) and such fee is not taken into account for the purposes of the split in (1). Instead any Solvency 2 fee is payable on the date specified in (1)(a) or (2) (depending on which applies to the rest of its periodic fee) or any earlier date required by (3) or (4).

Groups of firms

FEES 4.3.7RRP

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 FSA in writing of the name of each other firm within the group for which it will pay; and

  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 4.3.8GRP

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

FEES 4.3.9GRP

If the payment made does not satisfy in full the periodic fees payable by all of the members of the group notified to the FSA under FEES 4.3.7 R, the FSA 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.

FEES 4.3.10GRP

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 FSA is informed that the sum being paid is for that firm's periodic fees.

Incoming EEA firms and incoming Treaty firms

FEES 4.3.11GRP

The FSA recognises that its responsibilities in respect of an incoming EEA firm or of an incoming Treaty firm are reduced compared with a firm which is incorporated in the United Kingdom. Accordingly the periodic fees which would otherwise be applicable to incoming EEA firms and incoming Treaty firms are reduced.

FEES 4.3.12RRP

For an incoming EEA firm 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 Part 1 of FEES 4 Annex 2 are applied only to the regulated activities of the firm which are carried on in the United Kingdom; and

  2. (2)

    those tariffs are modified in accordance with Part 3 of and, if applicable, Part 3 of FEES 4 Annex 2.

Firms Applying to Cancel or Vary Permission Before Start of Period

FEES 4.3.13RRP
  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); an issuer makes an application for de-listing; or a sponsor notifies FSA 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 periodto which the fee relates;

    FEES 4.2.1 R applies to the firm as if the relevant variation or cancellation of the firm's permission, de-listing or removal from the list of approved sponsors,1 took effect immediately before the start of the periodto which the fee relates.

  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 within three months of the start of the period to which the fee relates.

    1
FEES 4.3.14GRP

Where a firm has applied to cancel its Part IV permission, or the FSA has exercised its own-initiative powers to cancel a firm's Part IV permission, the due dates for payment of periodic fees are modified by FEES 4.3.6R (3) and FEES 4.3.6R (4) respectively.

Firms acquiring businesses from other firms

FEES 4.3.15R
  1. (1)

    This rule applies if:3

    1. (a)

      a firm (A) acquires all or a part of the business of another firm (B), whether by merger, acquisition of goodwill or otherwise, in relation to which a periodic fee would have been payable by B, unless no periodic fee was payable by A in the financial year that the business was acquired from B; or3

    2. (b)

      A became authorised as a result of B's simple change of legal status (as defined in FEES 3 Annex 1 Part 6).3

  2. (2)

    If, before the date on which A acquires the business, B had paid any periodic fee payable for the period in which the acquisition occurred, FEES 4.2.6 R to FEES 4.2.7 R do not apply to A in relation to the business acquired from B.

  3. (3)

    If the acquisition occurs after the valuation date applicable to the business (as set out in FEES 4 Annex 1) which A acquired from B, for the period following that in which the acquisition occurred, FEES 4.2.1 R applies to A, in relation to that following period, as if the acquisition had occurred immediately before the relevant valuation date.

Minimum fee discount

FEES 4.3.16R
  1. (1)

    A firm (other than a firm in (2) or a credit union) in more than one fee block must pay at least 50% of the total minimum fee payable in any fee block in which it is a minimum fee payer.[deleted]9

  2. (2)

    A firm (other than a credit union) liable to pay only minimum fees in each fee block it is in must pay 100% of the highest total minimum fee payable within any one fee block and must pay at least 50% of the total minimum fee payable in any other fee blocks in which it is a minimum fee payer.[deleted]9

  3. (3)

    A credit union in more than one fee block must pay at least 50% of the total minimum fee payable in any fee block, other than fee block A.1, in which they are a minimum fee payer.[deleted]9