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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; 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 2 or Parts 6 and/or 7 of FEES 4 Annex 11. For the purposes of this deduction, any deduction available in Part 2 of FEES 4 Annex 2 shall not be applied to any fee calculated in accordance with FEES 4.3.3A R and any deduction available in Part 6 and/or 7 of FEES 4 Annex 11 shall not be applied to any fees calculated in accordance with FEES 4.3.3 R. 7

FEES 4.3.2GRP
  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 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 (and guidance on calculating certain of the tariffs is at FEES 4 Annex 12 G and ) ,8 while FEES 4 Annex 2 sets out the tariff rates for the relevant financial year. In the case of firms that provide payment services, the relevant fee blocks, tariffs and rates are set out in FEES 4 Annex 11.7

  2. (2)

    Incoming EEA firms, incoming Treaty firms and EEA authorised payment institutions7receive 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,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)7

FEES 4.3.3RRP

The periodic fee referred to in FEES 4.3.1 R is (except in relation to the Societyand fee-paying payment service providers) calculated as follows:

7
  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;

    9
  3. (3)

    add together the amounts calculated under (2);

    9
  4. (4)

    work out whether a minimum fee is payable under Part 1A of FEES 4 Annex 2 R and if so how much;9

    9
  5. (5)

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

  6. (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 FSA; or

    2. (b)

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

Calculation of periodic fee for fee-paying payments service providers7

FEES 4.3.3ARRP

7The periodic fee referred to in FEES 4.3.1 R in relation to fee-paying payment service providers is calculated in accordance with FEES 4 Annex 11 R.

Modification for firms with new or extended permissions

FEES 4.3.4GRP
  1. (1)

    A firm which becomes authorised or registered 7during 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 or the right to provide particular payment services 7- see FEES 4.2.5 G and FEES 4.2.6 R.

  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 and incoming Treaty firms.

  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 FSA during the course of a financial year.

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), 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),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. (4A)

    If the FSA has cancelled a firm's authorisation or registration under regulation 10 of the Payment Services Regulations or its registration under regulation 10 as applied by regulation 14 of the Payment Services Regulations then (1) and (2) do not apply but the firm must pay the total amount due immediately before the cancellation becomes effective.7

  6. (5)

    4Paragraphs (1) and (2) do not apply to any Solvency 2 fee or Solvency 2 Implementation fee6 (as defined in Part 1 of FEES 4 Annex 2) and such fees are6 not taken into account for the purposes of the split in (1). Instead any Solvency 2 fee or Solvency 2 Implementation fee 6is 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).

    6
  7. (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 4.3.7RRP

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, incoming Treaty firms and EEA authorised payment institutions7

FEES 4.3.11GRP

The FSA recognises that its responsibilities in respect of an incoming EEA firm,7 an incoming Treaty firmor an EEA authorised payment institution7 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,7 incoming Treaty firms and EEA authorised payment institutions7 are reduced.

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FEES 4.3.12RRP

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 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.

FEES 4.3.12ARRP

7For a full credit institution or an e-money issuer which is a fee-paying payment service provider and an EEA firm, or for an EEA authorised payment institution, the calculation required by FEES 4.3.3A R is modified as follows:

  1. (1)

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

  2. (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 4.3.13RRP
  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), 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);an issuer makes an application for de-listing; or a sponsor notifies the 7FSA of its intention to be removed from the list of approved sponsors; 1and

      7
    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 or authorisation or registration under the Payment Services Regulations , 7 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 its authorisation or registration under the Payment Services Regulations 7or the FSA has exercised its own-initiative powers to cancel a firm's7 Part IV permission or the FSA 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, 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.

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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 or registered 7as 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 and FEES 4 Annex 11) 7 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.

FEES 4.3.16R
  1. (1)

    [deleted]9

  2. (2)

    [deleted]9

  3. (3)

    [deleted]9