A.1
|
MODIFIED ELIGIBLE LIABILITIES
For
banks and building societies:16
19
Item B of Form ELS (Note (1)):
(£1 +£2 +£3 +£4 + 0.6*£5 +£6 - £8 - £9A - £9B - £10A - £10B - £10C - £11A - £11B - 0.6*£12) + (1/3)*(F1 + F2 + F3 + F4 + 0.6*F5 + F6 - F8 - F9A - F9B - F10A - F10B - F10C - F11A - F11B - 0.6*F12)
-£13M
8
16
19
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Notes:
(1) All references in the above formula are to entries on Form ELS19 (that is, the Eligible Liabilities Return 19completed to provide information by banks19and building societies16to the Bank of England as required by the Bank of England Act 1998).
(2)19 The figures reported on the Form ELS19 relate to business conducted out of offices in the United Kingdom.
19
19
19
19
19
|
|
For
credit unions:
Deposits with the credit union (share capital)
21
|
|
LESS
the credit union's bank deposits (investments + cash at bank)
Note:
Only United Kingdom business is relevant for calculating credit unions' MELs.
|
|
16
|
|
Note :
For a dormant account fund operator the tariff base is not relevant and the flat fee in FEES 4 Annex 2 R is payable.
16
|
A.2
|
NUMBER OF MORTGAGES
OR OTHER HOME FINANCE TRANSACTIONS
3
ENTERED INTO AND ADMINISTERED
The number of new mortgage contracts, home purchase plans,14home reversion plans3 and regulated sale and rent back agreements14 entered into;
AND
The number of mortgage contracts, home purchase plans,14home reversion plans3 and regulated sale and rent back agreements14 being administered, multiplied by 0.05 for mortgage outsourcing firms or other home finance outsourcing firms3and by 0.5 for all other firms.1
Notes:
(1) Mortgage outsourcing firms are firms with permission for administering regulated mortgage contracts, but not to enter the contract as lender.1
Home finance outsourcing firms are firms with permission for administering a home finance transaction, but not entering into a home finance transaction.3
(2) In this context a 'mortgage' means a loan secured by a first charge over residential property in the United Kingdom. For the measure of the number of contracts being administered, each first charge counts as one contract, irrespective of the number of loans involved.
(3) Mortgages, home purchase plans,14home reversion plans3 and regulated sale and rent back agreements14 administered include those that the firm administers on behalf of other firms.
1
1
|
A.3
|
GROSS PREMIUM INCOME AND GROSS TECHNICAL LIABILITIES
For
insurers:
The amount of premium receivable which must be included in the documents required to be deposited under IPRU(INS) 9.6 in relation to the financial year to which the documents relate but disregarding for this purpose such amounts as are not included in the document by reason of a waiver or an order under section 68 of the Insurance Companies Act 1982 carried forward as an amendment to IPRU(INS) under transitional provisions relating to written concessions in SUP; 11
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AND the amount of gross technical liabilities (IPRU(INS) Appendix 9.1 - Form 15, line 19) which must be included in the documents required to be deposited under IPRU(INS) 9.6R in relation to the financial year to which the documents relate but disregarding for this purpose such amounts as are not included in the document by reason of a waiver or an order under section 68 of the Insurance Companies Act 1982 carried forward as an amendment to IPRU(INS) under transitional provisions relating to written concessions in SUP.11
6
11
|
|
Notes :
(1) in the case of either:
(a) a pure reinsurer carrying on general insurance business through a branch in the United Kingdom; or
(b) an insurer whose head office is not in an EEA State carrying on general insurance business through a branch in the United Kingdom; or
(c) a non-EEA insurer other than a Swiss general insurer which has permission to carry on direct insurance business and which has made a deposit in an EEA state other than the United Kingdom in accordance with IPRU(INS) 8.1(2),
the amount only includes premiums received and gross technical liabilities held in respect of its United Kingdom business;
(2) for a Swiss general insurance company, premiums and gross technical liabilities include those relevant to the operations of the company's United Kingdombranch; and
(3) a firm need not include premiums and gross technical liabilities relating to pure protection contracts which it reports, and pays a fee on, in the A.4 activity group.
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For
friendly societies:
Either:
(a) the value of contributions as income under Schedule 7: Part I item 1(a) to the Friendly Societies (Accounts and Related Provisions) Regulations 1994 (SI 1994/1983) (the regulations) for a non-directive friendly society, included within the income and expenditure account; or
(b) the value of gross premiums written under Schedule 1: Part I items I.1(a) and II.1.(a) of the regulations for a directive friendly society included within the income and expenditure account.
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Notes :
(1) In both (a) and (b) above only premium receivable in respect of United Kingdom business are relevant.4
(2) For UK ISPVs the tariff base is not relevant and a flat fee set out in FEES 4 Annex 2R is payable.4
4
|
A.4
|
ADJUSTED GROSS PREMIUM INCOME AND MATHEMATICAL RESERVES (see
2 G
)17
Amount of new regular premium business (yearly premiums including reassurances ceded but excluding cancellations and reassurances accepted), times ten;
Plus
amounts of new single premium business (total including reassurances ceded but excluding cancellations and reassurances accepted). Group protection business (life and private health insurance) must be included;
Less
premiums relating to pension fund management;11
Less
11
premiums relating to Trustee Investment Plans.11
For each of the above, business transacted through independent practitioners or tied agents (either single or multi-tie)1 will be divided by two in calculating the adjusted gross premium income;
13
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|
AND
the amount of mathematical reserves (IPRU(INS) Appendix 9.1R - Form 146, Line 116) which must be included in the documents required to be deposited under IPRU(INS) 9.6R in relation to the financial year to which the documents relate but disregarding for this purpose such amounts as are not included in the document by reason of a waiver or an order under section 68 of the Insurance Companies Act 1982 carried forward as an amendment to IPRU(INS) under transitional provisions relating to written concessions in SUP;
Less
mathematical reserves relating to pension fund management.11
Less
11
mathematical reserves relating to Trustee Investment Plans.11
Notes:
(1) [deleted]
(2) Only premiums receivable and mathematical reserves held in respect of United Kingdom business are relevant.
(3)An insurer must include in its calculation of adjusted gross premium income (AGPI) and mathematical reserves (MR) the value of MR and AGPI relating to all risks ceded to ISPVs.134
(4) Trustee Investment Plans are the class of contract of insurance specified in Class III of Part II of Schedule 1 to the Regulated Activities Order (Contracts of long-term insurance) and which are invested in pooled funds beneficially owned by the insurer and not earmarked to individual beneficiaries by that insurer.11
6
6
6
11
13
|
A.5
|
ACTIVE CAPACITY
The capacity of the syndicate(s) under management in the year in question. This includes the capacity for syndicate(s) that are not writing new business, but have not been closed off in the year in question.
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A.6
|
Not applicable.
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A.7
|
FUNDS UNDER MANAGEMENT (FuM)
The total value, in pounds sterling, of all assets (see note (a) below) in portfolios which the firm manages, on a discretionary basis (see note (b) below), in accordance with its terms of business, less:
(a) funds covered by the exclusion contained in article 38 (Attorneys) of the Regulated Activities Order;
(b) funds covered by the exclusion contained in article 66(3) (Trustees, nominees and personal representatives) of the Regulated Activities Order;
(c) funds covered by the exclusion contained in article 68(6) (Sale of goods or supply of services) of the Regulated Activities Order;
(d) funds covered by the exclusion contained in article 69(5) (Groups and joint enterprises) of the Regulated Activities Order; and
(e) the value of those parts of the managed portfolios in respect of which the responsibility for the discretionary management has been formally delegated to another firm (and which firm will include the value of the assets in question in its own FuM total); any such deduction should identify the firm to which management responsibility has been delegated.
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Notes on FuM
(a) For the purposes of calculating the value of funds under management, assets means all assets that consist of or include any investment which is a designated investment or those assets in respect of which the arrangements for their management are such that the assets may consist of or include such investments, and either the assets have at any time since 29 April 1988 done so or the arrangements have at any time (whether before or after that date) been held out as arrangements under which the assets would do so.
(b) Assets managed by the firm on a discretionary basis exclude the firm's own assets.2028 Assets managed on a non-discretionary basis, being assets that the firm has a contractual duty to keep under continuous review but in respect of which prior specific consent of the client must be obtained for proposed transactions, are also excluded2028 as this activity is covered in those charged to fees in activity groups A.12 and A.13.
(c) In respect of collective investment schemes, assets means the total value of the assets of the scheme.
(d) For an OPS firm, the FuM should also be reduced by the value of the assets held as a result of a decision taken in accordance with article 4(6) of The Financial Services and Markets Act 2000 (Carrying on Regulated Activities by Way of Business) Order 2001 (investments in collective investment scheme or bodies corporate which have as their primary purpose the acquisition, directly, or indirectly, of relevant investments, as defined in that article).
(e) Only assets that are managed from an establishment maintained by the firm in the United Kingdom are relevant.
23(f) If the firm is managing an overlay portfolio of derivative instruments and the underlying assets are managed by itself or a firm within the same group that has not reported them separately to the FSA, or by a firm outside its group, then it should calculate the value of the derivatives and other assets as prescribed in the guidance in FSA038 in SUP 16 Annex 25.
If the underlying assets are managed by another firm within the same group who has reported their value separately to the FSA, then to avoid double-counting within the group, the calculation must be restricted to the exposure of the overlay.
20
28
|
A.8
|
Not applicable.
|
A.9
|
GROSS INCOME
For operators (including ACDs and managers of unit trusts but excluding operators of a personal pension scheme or a stakeholder pension scheme2):
gross income from the activity relating to fee-block A.9 is defined as:
the amount of the annual charge on funds invested in regulated or unregulated collective investment scheme received or receivable in the latest accounting period (this is calculated as a % of funds invested, typically 1% p.a.);
PLUS
the front-end or exit charge levied on sales or redemptions of collective investment schemes (typically 4-5% of sales/redemptions) in that same accounting period;
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PLUS
any additional initial or management charges levied through a product wrapper such as an ISA;
BUT EXCLUDING box management profits.
For
depositaries
(including
trustees
of
collective investment schemes
and
ICVC
depositaries):
The amount of the annual charge levied on funds in regulated collective investment schemes for which they act as depositary (typically a % of the total funds for which they act as depositary).
2For operators of a personal pension scheme or a stakeholder pension scheme:
2The amount of the charges levied on the personal pension scheme or stakeholder pension scheme for which they act as operator:
including up-front charges, fund related charges, transaction related charges and periodic charges; but
excluding charges made to an investor in respect of third party suppliers; for example, charges for stock broking, borrowing, banking services and charges for arranging third party legal services, surveys or environmental screening in connection with property.
Note:
Only the gross income corresponding to United Kingdom business is relevant.
10
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A.10
|
NUMBER OF TRADERS
Any employee or agent, who:
ordinarily acts within the United Kingdom on behalf of an authorised person liable to pay fees to the FSA in its fee-block A.10 (firms dealing as principal); and who,
as part of their duties in relation to those activities of the authorised person , commits the firm in market dealings or in transactions in securities or in other specified investments in the course of regulated activities.
But not any employees or agents who work solely in the firm's MTF
operation.11
A firm may, as an option, report employees or agents as full-time equivalents (FTE), taking account of any part-time staff. In calculating the FTE, firms must take into account the total hours employees or agents have contracted to work for the firm and not the time employees or agents devote to the dealing in investments as principal and bidding in emissions auctions functions set out in fee-block A.1024. Any figures using the FTE calculation to be recorded to one decimal place, rounded down to the nearest decimal place.22
24
|
A.11
|
Not applicable.
|
A.12
|
25
ANNUAL INCOME
Annual income as defined in FEES 4 Annex 11A R.
5
5
25
5
5
5
5
5
|
A.13
|
25
ANNUAL INCOME
Annual income as defined in FEES 4 Annex 11A R.
5
5
25
5
5
5
5
5
|
A.14
|
25
ANNUAL INCOME
Annual income as defined in FEES 4 Annex 11A R.
5
25
5
|
A.15
|
Not applicable.
|
A.16
|
Not applicable.2028
20
28
|
A.17
|
Not applicable.
|
A.18
|
ANNUAL INCOME
(a) the net amount retained by the firm of all brokerages, fees, commissions and other related income (eg administration charges, overriders, profit shares) due to the firm in respect of or in relation to home finance mediation activity3 (or activities which would have been mortgage mediation activity if they had been carried out after 30 October 2004 or home purchase mediation activity or home reversion mediation activity if they had been carried out on or after 6 April 20073 or regulated sale and rent back mediation activity if they had been carried out on or after 1 July 200914);
Plus
(b) for any home finance mediation activity3 carried out by the firm for which it receives payment from the lender or provider 3on a basis other than that in (a), the value of all new mortgage advances and amounts provided under other home finance transactions3resulting from that activity multiplied by 0.004;
Plus
(c) if the firm is a home finance provider3, the value of all new mortgage advances and amounts provided under other home finance transactions3which are or would be regulated mortgage contracts if they had been made after 30 October 2004 or home purchase plans or home reversion plans if they had been made on or after 6 April 2007 3or regulated sale and rent back mediation activity if they had been carried out on or after 1 July 200914(other than those made as a result of home finance mediation activity3by another firm), multiplied by 0.004.
For mortgage outsourcing firms or home finance outsourcing firms3 whose permission does not include advising on a home finance transaction3the relevant amounts are multiplied by 0.15.1
Notes on annual income:
(1) For 2004/05 and 2005/06 firms have supplied this data on their 'HSF1' or 'variation of permission' application form.
(2) For the purposes of calculating annual income, "net amount retained" means all the commission, fees, etc. in respect of home finance mediation activity3that the firm has not rebated to customers or passed on to other firms (for example, where there is a commission chain). Items such as general business expenses (eg employees' salaries, overheads) should not be deducted.
(3) The firm must include in its income calculation, on the same basis as above, earnings from those who will become its appointed representatives immediately after authorisation.
(4) Reference to a "firm" above also includes reference to any person who carried out activities which would be mortgage mediation activity if they had been carried out after 30 October 2004 or home purchase mediation activity or reversion mediation activity if they had been carried out on or after 6 April 20073or regulated sale and rent back mediation activity if they had been carried out on or after 1 July 2009.14
(5) Mortgage outsourcing firms are firms whose permission includes administering regulated mortgage contracts, but not entering into a regulated mortgage contract.1Home finance outsourcing firms are firms whose permission includes administering a home finance transaction, but not entering into a home finance transaction.3
(6) The same firm may receive income under paragraph (a) and (c).11
(7) A firm must include in paragraph (a) any income it receives from home finance mediation activity carried on by another person with respect to any home finance transaction into which the firm has entered as lender, plan provider or home purchase provider.11
(8) In calculating the net amount retained, a firm may not deduct amounts that it rebates to a person other than another firm, a person falling within the extended definition of firm in Note (4) or the firm's customer.
(9) A firm may only deduct amounts under paragraph (a) in calculating its net amount retained if the amount is to be deducted from income that the firm must include under paragraph (a). Therefore for example: 11
(a) if a mortgage lender (Firm A) pays a firm commission for arranging a regulated mortgage under which Firm A is a lender, Firm A may not take that expense into account in calculating its annual income if Firm A does not receive a fee from the borrower or another person in respect of that regulated mortgage; and11
(b) if a mortgage lender (Firm A) pays a firm (Firm B) commission for arranging a regulated mortgage under which Firm A is a lender, Firm A receives a payment from the borrower under that transaction and the amount payable to Firm B exceeds the amount payable by the borrower, Firm A may not take that excess into account in calculating its annual income and must instead net the sum payable by the borrower to zero.11
(10) A firm must include in paragraph (a) any survey and booking fees due to it in respect of or in relation to home finance mediation activity or which would been home finance mediation activity if they had been carried on or after the dates in paragraph (a).11
3
3
3
3
3
3
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A.19
|
ANNUAL INCOME(A)13 the net amount retained by the firm of all brokerages, fees, commissions and other related income (eg administration charges, overriders, profit shares) due to the firm in respect of or in relation to insurance mediation activity (or activities which would have been insurance mediation activity if they had been carried out after 13 January 2005 or, in relation to connected travel insurance contracts, from 1 January 2009)9 in relation to general insurance contracts or pure protection contracts;
Plus(B)13 in relation to the activities set out in (A),13 for any insurance mediation activity carried out by the firm for which it receives payment from the insurer on a basis other than that in (A),13 the amount of premiums receivable on the contracts of insurance resulting from that activity multiplied by 0.07;
Plus(C)13 if the firm is an insurer, in relation to the activities set out in (A),13 the amount of premiums receivable on its contracts of insurance multiplied by 0.07, excluding those contracts of insurance which:
(i) result from insurance mediation activity by another firm, where a payment has been made by the insurer to the firm under (A);13 or
(ii) the insurer reports in, and pays a fee under, the A.4 activity group; or
(iii) are not general insurance contracts or pure protection contracts.
Notes on annual income:
(2) For the purposes of calculating annual income, "net amount retained" means all the commission, fees, etc. in respect of insurance mediation activity that the firm has not rebated to customers or passed on to other firms (for example, where there is a commission chain). Items such as general business expenses (eg employees' salaries, overheads) should not be deducted.
(3) The firm must include in its income calculation, on the same basis as above, earnings from those who will become its appointed representatives immediately after authorisation.
(4) Reference to a "firm " above also includes reference to any person, including a connected travel insurance intermediary,9 who carried out activities which would be insurance mediation activity (in respect of general insurance contracts or pure protection contracts) if they had been carried out after 13 January 2005 or, in relation to connected travel insurance contracts, from 1 January 2009.9
(5) The same firm may receive income under (A) and (C).13
(6) A firm must include in (A) any income it receives from insurance mediation activity carried on by another person with respect to any general insurance contracts or pure protection contracts into which the firm has entered as insurer.13
(7) In calculating the net amount retained, a firm may not deduct amounts that it rebates to a person other than another firm, a person falling within the extended definition of firm in Note (4) or the firm's customer.13
(8) A firm may only deduct amounts under (A) in calculating its net amount retained if the amount is to be deducted from income that the firm must include under (A). Therefore for example: 13
(a) if an insurer (Firm A) pays a firm commission for arranging a general insurance contract or pure protection contract under which Firm A is the insurer, Firm A may not take that expense into account in calculating its annual income if Firm A does not receive a fee from the insured or another person in respect of that contract; and13
(b) if an insurer (Firm A) pays a firm (Firm B) commission for arranging a general insurance contract or pure protection contract under which Firm A is the insurer, Firm A receives a payment from the insured under that transaction and the amount payable to Firm B exceeds the amount payable by the insured, Firm A may not take that excess into account in calculating its annual income and must instead net the sum payable by the insured to zero.13
13
13
13
13
13
13
13
9
|
B. Market operators
|
Not applicable.
|
B. Service companies
|
Not applicable.11
|
B.
MTF
operators
12
|
Not applicable
|