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FEES 4 Annex 2 1399Fee tariff rates, permitted deductions and EEA/Treaty firm modifications for the period from 1 April 142011 to 31 March 20121413

Part 1

This table shows the tariff rates applicable to each fee block

13(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 by multiplying the value of the firm's tariff base by the rate applicable to each tranche of the tariff base, as indicated (Note 1).

(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 R 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.

Note 1

In the case of activity groups A.3 and A.4 there are three 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 rate in Column 3 relates to the Solvency 2 Special Project fee and firms must determine their obligation to pay this fee by reference to Part 4 of this annex. The total periodic fee for each of these fee-blocks is determined by adding the amounts obtained under all three columns, as applicable.

14

Activity group

Fee payable

A.1

Band width (£ million of Modified Eligible Liabilities (MELs))

Fee (£/£m or part £m of MELs)

Column 1

General Periodic fee

14

>10 - 140

33.4414

14
14

>140 - 630

33.4414

14
14

>630 - 1,580

33.4414

14
14

>1,580 - 13,400

41.8014

14
14

>13,400

55.1814

14
14

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, this 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 £6,00014 is payable in respect of these permissions.

1414

A.2

Band width (No. of mortgages and/or home finance transactions)

Fee (£/mortgage)

>50 - 130

1.7914

14

>130 - 320

1.7914

14

>320 - 4,570

1.7914

14

>4,570 - 37,500

1.7914

14

>37,500

1.7914

14

A.3

Gross premium income (GPI)

Column 1

General periodic fee

Column 2

Solvency 2 Implementation fee

Column 3

Solvency 2 Special Project fee

Minimum fee (£)

Not applicable

25.0014

14

25.00

Band Width (£ million of GPI)

Fee (£/£m or part £m of GPI)

>0.5 - 10.5

505.5114

14

119.3814

14

127.5714

14

>10.5 - 30

505.5114

14

119.3814

14

127.5714

14

>30 - 245

505.5114

14

119.3814

14

127.5714

14

>245 - 1,900

505.5114

14

119.3814

14

127.5714

14

>1,900

505.5114

14

119.3814

14

127.5714

14

PLUS

Gross technical liabilities (GTL)

Column 1 General Periodic fee

Column 2 Solvency 2 Implementation fee

Column 3

Solvency 2 Special Project fee

Band Width (£ million of GTL)

Fee (£/£m or part £m of GTL)

>1 - 12.5

26.8214

14

6.4214

14

7.2514

14

>12.5 - 70

26.8214

14

6.4214

14

7.2514

14

>70 - 384

26.8214

14

6.4214

14

7.2514

14

>384 - 3,750

26.8214

14

6.4214

14

7.2514

14

>3,750

26.8214

14

6.4214

14

7.2514

14

For UK ISPV's the tariff rates are not relevant and a flat fee of £430 is payable in respect of each FSA financial year (the 12 months ending 31 March).

A.4

Adjusted annual gross premium income (AGPI)

Column 1

General Periodic fee

Column 2

Solvency 2 Implementation fee

Column 3

Solvency 2 Special Project fee

Minimum fee (£)

Not applicable

25.00

25.00

Band Width (£ million of AGPI)

Fee (£/£m or part £m of AGPI)

>1 - 5

628.8214

14

147.3914

14

151.3514

14

>5 - 40

628.8214

14

147.3914

14

151.3514

14

>40 - 260

628.8214

14

147.3914

14

151.3514

14

>260 - 4,000

628.8214

14

147.3914

14

151.3514

14

>4,000

628.8214

14

147.3914

14

151.3514

14

PLUS

Mathematical reserves (MR)

Column 1

General Periodic fee

Column 2

Solvency 2 Implementation fee

Column 3

Solvency 2 Special Project fee

Minimum fee (£)

Not applicable

25.00

25.00

Band Width (£ million of MR)

Fee (£/£m or part £m of MR)

>1 - 20

13.4414

14

3.1014

14

3.0614

14

>20 - 270

13.4414

14

3.1014

14

3.0614

14

>270 - 7,000

13.4414

14

3.1014

14

3.0614

14

>7,000 - 45,000

13.4414

14

3.1014

14

3.0614

14

>45,000

13.4414

14

3.1014

14

3.0614

14

A.5

Band Width (£ million of Active Capacity (AC))

Fee (£/£m or part £m of AC)

>50 - 150

56.3414

14

>150 - 250

56.3414

14

>250 - 500

56.3414

14

>500 - 1,000

56.3414

14

>1,000

56.3414

14

A.6

Flat fee

1,419,112.2814

14

PLUS

Solvency 2 Special Project Flat fee (£)

975,00014

14

PLUS

Solvency 2 Implementation Flat fee (£)

331,238.4914

14

A.7

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

Band Width (£ million of Funds under Management (FuM))

Fee (£/£m or part £m of FuM)

>10 - 150

6.8014

14

>150 - 2,800

6.8014

14

>2,800 - 17,500

6.8014

14

>17,500 - 100,000

6.8014

14

>100,000

6.8014

14

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

Band Width (£ million of Gross Income (GI))

Fee (£/£m or part £m of GI)

>1 - 4.5

1,380.8514

14

>4.5 - 17

1,380.8514

14

>17 - 145

1,380.8514

14

> 145 - 750

1,380.8514

14

>750

1,380.8514

14

A.10

Band Width (No. of traders)

Fee (£/trader)

2 - 3

3,565.7314

14

4 - 5

3,565.7314

14

6 - 30

3,565.7314

14

31 - 180

3,565.7314

14

>180

3,565.7314

14

A.11

This activity group does not apply for this period.

A.12

Band Width (No. of persons)

Fee (£/person)

2 - 5

757.1714

14

6 - 35

757.1714

14

36 - 175

757.1714

14

176 - 1,600

757.1714

14

>1,600

757.1714

14

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

A.13

For class (2) firms:

Band Width (No. of persons)

Fee (£/person)

2 - 3

1,290.54

4 - 30

1,290.54

31 - 300

1,290.54

301 - 2,000

1,290.54

>2,000

1,290.54

For class (1) firms: 1,850 For a professional firm in A.13 the fee is calculated as above less 10%.

A.14

Band Width (No. of persons)

Fee (£/person)

2 - 4

2,809.8314

14

5 - 25

2,809.8314

14

26 - 80

2,809.8314

14

81 - 199

2,809.8314

14

>199

2,809.8314

14

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

Band Width ( thousands of Annual Income (AI))

Fee (£/£ thousand or part £ thousand of AI)

>100 - 180

13.1214

14

>180 - 1,000

13.1214

14

>1,000 - 12,500

13.1214

14

>12,500 - 50,000

13.1214

14

>50,000

13.1214

14

A.19

Band Width (£ thousands of Annual Income (AI))

Fee (£/£ thousand or part £ thousand of AI)

>100 - 325

1.9414

14

>325 - 10,000

1.9414

14

>10,000 - 50,750

1.9414

14

>50,750 - 250,000

1.9414

14

>250,000

1.9414

14

B. Market operators

£35,000

B. Service companies

Bloomberg LP

£45,00014

LIFFE Services Ltd

£35,000

[row deleted]

OMGEO Ltd

£35,000

Reuters Ltd

£45,000

Swapswire Ltd

£35,000

B. MTF operators

As set out in FEES 4 Annex 10R (Periodic fees for MTF operators).

Part 1 A

13(1)

This Part sets out the minimum fee applicable to the firms specified in (3) below.

(2)

The minimum fee payable by any firm referred to in (3) is £1,000 unless:

(a)

it is a credit union that meets the conditions in (4), in which case the minimum fee payable is as set out in (4); or

(b)

it is a non-directive friendly society that falls into the A.3 activity group but not the A.4 activity group and meets the conditions set out in (5)(a), in which case the minimum fee payable is £430; or.

(c)

it is a non-directive friendly society that falls into the A.4 activity group but not the A.3 activity group and meets the conditions in (5)(b), in which case the minimum fee payable is £430; or

(d)

it is a non-directive friendly society that falls into the A.3 and A.4 activity groups and meets the conditions in (5)(a) and (5)(b), in which case the minimum fee payable is £430;

(3)

A firm (including an incoming EEA firm and an incoming Treaty firm) is referred to in this paragraph if it falls within the following activity groups: A.1; A.2; A.3 (excluding UK ISPVs); A.4; A.5; A.7; A.9; A.10; A.12; A.13; A.14; A.18; and A.19 (Note 1).

(4)

The conditions referred to in (2)(a) are that the credit union has a tariff base (Modified Eligible Liabilities) of:

(a)

£0 to 0.5million, in which case a minimum fee of 160 is payable; or

(b)

greater than £0.5millon but less than £2.0million, in which case a minimum fee of £540 is payable.

(5)

The conditions referred to in (2) are that:

(a)

the non-directive friendly society falls into the A.3 activity group and has, for that activity, 0.5 million or less in gross premium income and holds gross technical liabilities of £1.0 million or less;

(b)

the non-directive friendly society falls into the A.4 activity group and has, for that activity, written £1.0 million or less in adjusted gross premium income and holds mathematical reserves of £1.0 million or less.

The figures for gross premium income, gross technical liabilities, adjusted gross premium income and mathematical reserves are the same as used for Part 1 of this Annex.

Note 1

In the case of a firm which is required to pay the Solvency 2 Implementation fee (see Part 5) and, where relevant, the Solvency 2 Special Project fee there is an additional minimum fee set out in Part 1.

Part 2

This table shows the permitted deductions that apply where financial penalties are received by the FSA under sections 66, 123 and 206 of the Act and regulation 42 of the Money Laundering Regulations:1413

14

4Activity group

13

Amount of deduction

13Part 1A (minimum fee)

16.8%14 of the fee payable by the firm for the activity group (see Part 1)

14

A.1

13

17.0%141310 of the fee payable by the firm for the activity group (see Part 1)

6101314

A.2

13

20.8%141310 of the fee payable by the firm for the activity group (see Part 1)

6101314

A.3

13

16.9%141310 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 13fee (as defined in Part 1)7 or Solvency 2 Implementation fee as applicable under Part 5.10

6101314

A.4

13

16.9%141310 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 13fee (as defined in Part 1)7 or Solvency 2 Implementation fee as applicable under Part 5.10

6101314

A.5

13

16.8%141310 of the fee payable by the firm for the activity group (see Part 1)

6101314

A.6

13

16.8%1410 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

6101314

A.7

13

18.1%1410 of the fee payable by the firm for the activity group (see Part 1)

6101314

A.9

13

16.8%1410 of the fee payable by the firm for the activity group (see Part 1)

6101314

A.10

13

18.6%1410 of the fee payable by the firm for the activity group (see Part 1)

6101314

A.12

13

21.7%1410 of the fee payable by the firm for then activity group (see Part 1)

6101314

A.13

13

17.7%1410 of the fee payable by the firm for the activity group (see Part 1)

6101314

A.14

13

20.4%1410 of the fee payable by the firm for the activity group (see Part 1)

6101314

A.18

13

18.2%1410 of the fee payable by the firm for the activity group (see Part 1)

6101314

A.19

13

17.3%1410 of the fee payable by the firm for the activity group (see Part 1)

6101314
9

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

13

A.1

50%13

135
135

A.3

9013%

13
13

A.4

25%

13

A.7

5%

13

A.9

5%

13

A.10

10%

13

A.12

10%

13

A.13

10%

13

A.19

10%

13

B. MTF operators9

Not applicable

13

Note 113

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.

13Note 2

The minimum fee described in Part 1A of FEES 4 Annex 2 R applies in full and the modifications in this Part do not apply to it.

7Part 4

This table shows the calculation of the Solvency 2 Special Project 13fee for firms falling into fee block A.3 or A.4.13

(1)

The Solvency 2 Special Project 13fee forms part of the periodic fee payable under fee blocks14 A.3 and A.4.

1414

(2)

The Solvency 2 Special Project 13fee is only payable by a firm if it meets the conditions in Part 5 and theconditions set out in paragraph (3) of this Part.14

1314

(a)

[deleted]14

1014

(b)

[deleted]14

131410

(c)

[deleted]13

101013

10(d)

[deleted]13

13

(3)

The conditions are that:14

101010101314

14(a)

before 1 April 2011 the firm, or a member of the group of which the firm is also a member (in either case, the recipient), received a written communication from the FSA that it has met the criteria for entry into pre-Internal Model Approval Process status (pre-IMAP); and

14(b)

the recipient remains in pre-IMAP status on 1 April 2011.

(4)

For the purposes of (3)(b), the recipient will be deemed to be in pre-IMAP status unless, before 1 April 2011:14

141313

14(a)

the recipient informs the FSA in writing that it wishes to withdraw from pre-IMAP status; or

14(b)

the recipient has been informed by the FSA in writing that it is no longer in pre-IMAP status.

(5)

For the purposes of this Part a reference to pre-IMAP means the status achieved by the recipient by joining the process established by the FSA whereby the FSA and the recipient engage with a view to the FSA establishing whether an internal model developed by the recipient is likely to meet the tests and standards specified in the Solvency 2 Directive.14

101314

(6)

A reference to group in this Part means a group determined by reference to the provisions contained in Title III, Chapter I of the Solvency 2 Directive.14

8101314

(7)

[deleted]13

1310

(8)

[deleted]13

1013

(9)

[deleted]13

13

(10)

[deleted]13

13

(11)

FEES 4.2.6 R and FEES 4.2.7 R do not apply to the Solvency 2 Special Project fee.13

13

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 2011/1214 that it intends to migrate out of the United Kingdom for regulatory purposes before the Solvency 2 Directive13 is implemented;

131413

(c)

it meets either of the following conditions:13

13

(i) its gross premium income or adjusted gross premium income, as appropriate, referred to in R 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; or

(ii) its gross technical liabilities or mathematical reserves, as appropriate, referred to in R, 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;13

(d)

it was in one or both of the insurance fee blocks at the start of the financial year 2011/12;14

1314

13(e)

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

(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 Solvency 2 Directive 13is implemented in the United Kingdom but when the Solvency 2 Directive 13is 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.

1313

(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.

13(7)

FEES 4.2.6 R and FEES 4.2.7 R do not apply to the Solvency 2 Implementation fee.