FEES 4 Annex 2 1399Fee tariff rates, permitted deductions and EEA/Treaty firm modifications for the period from 1 July 2009 to 1 July 201011

104(1)

For each activity group specified in the table below, the fee is the total of the sums payable for each of the tariff bands applicable to the firm's business, calculated as follows:

(a)

the relevant minimum fee; plus

(b)

an additional fee calculated by multiplying the firm's tariff base by the appropriate rates applying to each tranche of the tariff base, as indicated(Note 1).10

(2)

A firm may apply the relevant tariff bases and rates to non-UK business, as well as to its UK business, if:

(a)

it has reasonable grounds for believing that the costs of identifying the firm's UK business separately from its non-UK business in the way described in Part 2 of FEES 4 Annex 1 are disproportionate to the difference in fees payable; and

(b)

it notifies the FSA in writing at the same time as it provides the information concerned under FEES 4.4 (Information on which fees are calculated), or, if earlier, at the time it pays the fees concerned.

(3)

For a firm which has not complied with FEES 4.4.2 R (Information on which fees are calculated) for this period:

(a)

the fee is calculated using (where relevant) the valuation or valuations of business applicable to the previous period, multiplied by the factor of 1.10;

(b)

an additional administrative fee of 250 is payable; and

(c)

the minimum total fee (including the administrative fee in (b)) is 430.6

10Note 1

In the case of activity groups A.3 and A.4 there are two tariff rates. The rate in column 1 applies to all firms in their respective fee-blocks. The rate in column 2 relates to the Solvency 2 Implementation fee and firms must determine their obligation to pay this fee by reference to Part 5 of this Annex. The total periodic fee for each of these fee-blocks is determined by adding the amounts obtained under both columns.

Activity group

Fee payable

A.1

Minimum fee ()

1606

million of Modified Eligible Liabilities (MELs)

Fee (/m or part m of MELS)

0 - 0.5

0

>0.5 - 2

additional flat fee of 3806

>2 -10

additional flat fee of 5306

>10 - 200

32.3110

>200 - 2,000

32.3110

>2,000 - 10,000

32.3110

>10,000 - 20,000

47.1910

>20,000

47.1910

For a firm in A.1 which has a limitation on its permission to the effect that it may accept deposits from wholesale depositors only, the fee is calculated as above less 30%.

The tariff rates in A.1 are not relevant for the permissions relating to operating a dormant account fund. Instead a flat fee of 6,000 is payable in respect of these permissions.12

A.2

Minimum fee ()

5256

No. of mortgages and/or home finance transactions11

Fee (/mortgage)

0 - 50

0

51 - 500

6.4010

501 - 1,000

2.3710

1,001 - 50,000

2.3710

50,001 - 500,000

1.3510

>500,000

0.3210

A.3

Gross premium income (GPI)

Column 1

(General periodic fee)10

Column 2

(Solvency 2 Implementation Fee)10

Minimum fee ()

4306

25.0410

million of GPI

Fee (/m or part m of GPI)

0 - 0.5

0

010

>0.5 - 2

2,461.9210

154.5010

>2 - 5

2,461.9210

154.5010

>5 - 20

2,461.9210

154.5010

>20 - 75

799.4210

50.1810

>75 - 150

799.4210

50.1810

>150

107.3610

6.7510

PLUS

Gross technical liabilities (GTL)

Column 1

(General Periodic fee)10

Column 2

(Solvency 2 Implementation fee)10

Minimum fee ()

0

010

million of GTL

Fee (/m or part m of GTL)

0 - 1

0

010

>1 - 5

60.3010

3.7410

>5 - 50

60.3010

3.7410

>50 - 100

60.3010

3.7410

>100 - 1,000

18.9610

1.1810

>1,000

7.5910

0.4810

PLUS

7Solvency 2 Special Project Fee (the Solvency 2 fee)

7Minimum fee ()

0

7There is only a single tariff band.

The fee is calculated in accordance with Part 4 of this Annex. The percentage for this fee block (by which periodic fees are multiplied as described in Part 4) is 9.79%.10

For UK ISPV's the tariff rates are not relevant and a flat fee of 4306is payable in respect of each FSA financial year (the 12 months ending 31 March).10

A.4

Adjusted annual gross premium income (AGPI)

Column 1

(General Periodic fee)10

Column 2

(Solvency 2 Implementation fee)10

Minimum fee ()

215

10.0910

million of AGPI

Fee (/m or part m of AGPI)

0 - 1

0

010

>1 - 50

740.0010

40.8410

>50 - 1,000

740.0010

40.8410

>1,000 - 2,000

554.5610

30.6010

>2,000

380.7510

1710

PLUS

Mathematical reserves (MR)

Column 1

(General Periodic fee)10

Column 2

(Solvency 2 Implementation fee)10

Minimum fee ()

215

9.7310

million of MR

Fee (/m or part m of MR)

0 - 1

0

010

>1 - 10

42.3510

2.2010

>10 - 100

42.3510

2.2010

>100 - 1,000

22.2510

1.1710

>1,000 - 5,000

22.2510

1.1710

>5,000 - 15,000

15.0410

0.7910

>15,000

15.0410

0.7910

7PLUS

7Solvency 2 Special Project Fee (Solvency 2 fee)

7Minimum fee ()

0

7There is only a single tariff band.

The fee is calculated in accordance with Part 4 of this Annex. The percentage for this fee block (by which periodic fees are multiplied as described in Part 4) is 9.66%.10

A.5

Minimum fee ()

580

million of Active Capacity (AC)

Fee (/m or part m of AC)

0 - 50

0

>50 - 150

122.4910

>150 - 250

116.6710

>250

48.2110

A.6

Flat fee

1,743,95810

PLUS10

Solvency 2 Special Project Flat Fee ()10

95,00010

PLUS10

Solvency 2 Implementation Flat Fee ()10

83,00010

A.7

For class 1(C), (2) and (3) firms:

Minimum fee ()

1,2106

million of Funds under Management (FuM)

Fee (/m or part m of FuM)

0 - 10

0

>10 - 100

58.2710

>100 - 2,500

18.7410

>2,500 - 10,000

10.4310

>10,000

1.6010

For class 1(B) firms: the fee calculated as for class 1(C) firms above, less 15%.

For class 1(A) firms: the fee calculated as for class 1(C) firms above, less 50%.

A.8

This activity group does not apply for this period.

A.9

Minimum fee ()

1,8906

million of Gross Income (GI)

Fee (/m or part m of GI)

0 - 1

0

>1 - 5

991.2510

>5 - 15

95510

>15 - 40

95510

>40

94010

A.10

Minimum fee ()

2,3106

No. of traders

Fee (/trader)

0 - 2

0

3 - 5

3,93710

6 - 10

2,67710

11 - 50

2,67710

51 - 200

3,28310

>200

3,28310

A.11

This activity group does not apply for this period.

A.12

Minimum fee ()

1,960

No. of persons

Fee (/person)

0 - 1

0

2 - 4

1,23210

5 - 10

59010

11 - 25

50410

26 - 150

25510

151 - 1,500

25510

>1,500

16010

For a professional firm in A.12 the fee is calculated as above less 10%.

A.13

For class (2) firms:

Minimum fee ()

1,850

No. of persons

Fee (/person)

0 - 1

0

2 - 4

1,11910

5 - 10

1,07310

11 - 25

1,07310

26 - 500

93910

501 - 4,000

93910

>4,000

93910

For class (1) firms: 1,850

For a professional firm in A.13 the fee is calculated as above less 10%.

A.14

Minimum fee ()

1,33510

No. of persons

Fee (/person)

0 - 1

0

2

1,39310

3 - 4

1,39310

5 - 10

1,21110

11 - 100

1,21110

101 - 200

90210

>200

90210

A.15

This activity group does not apply for this period.

A.16

This activity group does not apply for this period.

A.17

This activity group does not apply for this period.

A.18

Minimum fee ()

7456

thousands of Annual Income (AI)

Fee (/ thousand or part thousand of AI)

0 - 100

0

>100 - 1,000

6.9310

>1,000 - 5,000

5.6010

>5,000 - 10,000

5.6010

>10,000 - 20,000

4.3310

>20,000

3.7110

A.19

Minimum fee ()

4506

thousands of Annual Income (AI)

Fee (/ thousand or part thousand of AI)

0 - 100

0

>100 - 1,000

4.6610

>1,000 - 5,000

4.3010

>5,000 - 15,000

2.9910

>15,000 - 100,000

1.4010

>100,000

0.5710

B. Market operators

1030,00010

B. Service companies

Bloomberg LP

40,00010

EMX Co Ltd

30,00010

LIFFE Services Ltd

30,00010

[row deleted]

OMGEO Ltd

30,00010

Reuters Ltd

40,00010

Swapswire Ltd

30,00010

Thomson Financial Ltd

30,00010

B. MTF operators9

As set out in 0R (Periodic fees for MTF operators).

A.1

Financial penalties received

6.2%10 of the fee payable by the firm for the activity group (see Part 1)

A.2

Financial penalties received

6.2%10 of the fee payable by the firm for the activity group (see Part 1)

A.3

Financial penalties received

6.2%10 of the fee payable by the firm for the activity group (see Part 1). The deduction does not apply to any Solvency 2 fee (as defined in Part 1)7 or Solvency 2 Implementation fee as applicable under Part 5.10

A.4

Financial penalties received

6.2%10 of the fee payable by the firm for the activity group (see Part 1). The deduction does not apply to any Solvency 2 fee (as defined in Part 1)7 or Solvency 2 Implementation fee as applicable under Part 5.10

A.5

Financial penalties received

6.2%10 of the fee payable by the firm for the activity group (see Part 1)

A.6

Financial penalties received

6.2%10 of the fee payable by the firm for the activity group (see Part 1). The deduction does not apply to any Solvency 2 Special Project flat fee or Solvency 2 Implementation flat fee (as defined in Part 1).10

A.7

Financial penalties received

6.2%10 of the fee payable by the firm for the activity group (see Part 1)

A.9

Financial penalties received

6.2%10 of the fee payable by the firm for the activity group (see Part 1)

A.10

Financial penalties received

6.3%10 of the fee payable by the firm for the activity group (see Part 1)

A.12

Financial penalties received

6.2%10 of the fee payable by the firm for then activity group (see Part 1)

A.13

Financial penalties received

6.2%10 of the fee payable by the firm for the activity group (see Part 1)

A.14

Financial penalties received

6.2%10 of the fee payable by the firm for the activity group (see Part 1)

A.18

Financial penalties received

6.2%10 of the fee payable by the firm for the activity group (see Part 1)

A.19

Financial penalties received

6.2%1310 of the fee payable by the firm for the activity group (see Part 1)

Part 33

This table shows the modifications to fee tariffs that apply to incoming EEA firms and incoming Treaty firmswhich have established branches in the UK5.

Activity group

Percentage deducted from the tariff payable under Part 1 applicable to the firm

Minimum amount payable

A.1

80%

100

A.3

100%

nil

A.4

25%

100

A.7

5%

100

A.9

5%

100

A.10

10%

100

A.12

10%

100

A.13

10%

100

A.19

10%

100

B. MTF operators9

Not applicable

Not applicable

The modifications to fee tariffs payable by an incoming EEA firm or an incoming Treaty firm which has established a branch in the UK 5apply 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 UK.

7Part 4

This table shows the calculation of the Solvency 2 fee for firms falling into fee block A.3 or A.4

(1)

The Solvency 2 fee forms part of the periodic fee payable under fee block A.3 and A.4 (the insurance fee blocks).

(2)

The Solvency 2 fee is only payable by a firm if:

(a)

it was in one or both of the insurance fee blocks at the start of the financial year 2009/10;10

(b)

FEES 4.3.13 R (Firms Applying to Cancel or Vary Permission Before Start of Period) does not apply with respect to the fee block in (a);

(c)

it has not notified the FSA before the start of the financial year 2009/1010 that it intends to migrate out of the United Kingdom for regulatory purposes before the proposed Solvency II Directive is implemented; and10

10(d)

it is not an incoming EEA firm or an incoming Treaty firm.

(3)

The Solvency 2 fee is payable by the top sixty10 firms in the list of firms that fall into (2) and into fee block A3, and by the top sixty firms in the list of firms that fall into (2) and into fee block A4.10 A firm's ranking in the10 list for a particular insurance fee block10 is measured by reference to the amount of the periodic fees payable by it under FEES 4.3 in respect of the financial year 2008/9 10with respect to that10 insurance fee block.10

(4)

The fee for a particular insurance fee blockis calculated by multiplying the periodic fee payable by the firm with respect to that fee block (ignoring the Solvency 2 fee and the Solvency 2 Implementation fee)1310 by the percentage specified in Part 1.

(5)

The total Solvency 2 fee payable by a firm (taking into account amounts payable under both insurance fee blocks) is capped at 95,000.10

(6)

For the purpose of (3) firms falling into (2) that are in the same group at the start of the financial year 2009/1010 must be treated as a single firm, so that the total number of firms liable to pay the Solvency 2 fee may be greater than 120108

(7)

Where (6) applies, the Solvency 2 fee payable by the firms in the group concerned for a particular insurance fee block is calculated by multiplying the total amount of the periodic fees payable by those firms with respect to that fee block (ignoring the Solvency 2 fee and the Solvency 2 Implementation fee)10 by the percentage specified in Part 1. All those firms are liable jointly and severally to pay the Solvency 2 fee.

(8)

Where (7) applies, (5) is applied to the group as a whole so that the total joint Solvency 2 fee payable by the group is capped at 95,000.10

(9)

The definition of a group is restricted for the purpose of calculating the Solvency 2 fee to parent undertakings and their subsidiary undertakings.

(10)

In calculating the fee to which the percentage in (4) or (7) is applied, no account is taken of any change in the fee that takes place after the Solvency 2 fee has been billed.

(11)

The Solvency 2 fee is not reduced under the table in FEES 4.2.6 R (Modifications for persons becoming subject to periodic fees during the course of a financial year). Instead the fee to which the percentage in (4) or (7) is applied takes account of any reduction under that table. The same applies for the reductions in Part 3 of this Annex (Modifications to fee tariffs that apply to incoming EEA firms and incoming Treaty firms).

10Part 5

This Part sets out when a Solvency 2 Implementation fee is due for firms in the A.3 and A.4 fee-blocks.

(1)

The Solvency 2 Implementation fee is only payable by a firm if it meets all the conditions in (2) and neither of the conditions in (3).

(2)

The conditions in this paragraph are:

(a)

FEES 4.3.13 R (Firms Applying to Cancel or Vary Permission Before Start of Period) does not apply with respect to the relevant fee-blocks;

(b)

the firm has not notified the FSA before the start of the financial year 2009/1013 that it intends to migrate out of the United Kingdom for regulatory purposes before the proposed Solvency II Directive is implemented;

(c)

its gross premium income or adjusted gross premium income, as appropriate, referred to in FEES 4 Annex 1 Part 2, exceeds EUR 5 million at the end of the financial year ended in the calendar year ending 31 December prior to the FSA financial year;

(d)

its gross technical liabilities or mathematical reserves, as appropriate, referred to in FEES 4 Annex 1, Part 2, exceed EUR 25 million at the end of the financial year ended in the calendar year ending 31 December prior to the FSA financial year.

(3)

The conditions in this paragraph are:

(a)

the firm is a reinsurance undertaking that has, by 10 December 2007, ceased to conduct new insurance business and only administers its existing portfolio in order to terminate its activity as a reinsurance undertaking;

(b)

it is a reinsurance undertaking whose insurance business is conducted or fully guaranteed by the United Kingdom government for reasons of substantial public interest in the capacity of reinsurer of last resort.

(4)

Where a firm has notified the FSA that it intends to migrate out of the United Kingdom for regulatory purposes before the proposed Solvency II Directiveis implemented in the United Kingdom but when the proposed Directiveis implemented that firm remains in the United Kingdom for regulatory purposes, it must pay the Solvency 2 Implementation fee for each financial year commencing 1 April 2009 for which the Solvency 2 Implementation fee would have applied to the firm but for the firm notifying the FSA of its intention to migrate.

(5)

Where a firm is required to pay a Solvency 2 Implementation fee because of the circumstances described in (4) it must pay this fee within 30 days of the date of the invoice.

(6)

For the purposes of this Part, the exchange rate from the Euro to the pound sterling is calculated as at the last day of the October preceding the financial year of the FSA in question for which the exchange rates for the currencies of all European Union member states were published in the Official Journal of the European Union.