FEES 4 Annex 2A 577FCA Fee rates and EEA/Treaty firm modifications for the period from 1 April 2016 to 31 March 201711

38Part 1

This table shows the tariff rates applicable to each of the fee blocks set out in Part 1 of FEES 4 Annex 1AR.

(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.

(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 3 of FEES 4 Annex 1A R are disproportionate to the difference in fees payable; and

(b)

it notifies the FCA 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 4.4.2R8 (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; and11

(b)

an additional fee of £250 is payable, unless the firm is a PRA-authorised person in which case an additional fee of £125 is payable instead.11

(c)

[deleted]11

Activity group

Fee payable

A.1

Band width (£2million of Modified Eligible Liabilities (MELs))

Fee (£/£m or part £m2 of MELs)

General Periodic fee

>10 - 140

17.4911

>140 - 630

17.4911

>630 - 1,580

17.4911

>1,580 - 13,400

21.8611

>13,400

28.8611

The tariff rates in A.1 are not relevant for the permissions relating to operating a dormant account fund. Instead a flat fee of £116,000 is payable in respect of these permissions

A.2

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

Fee (£2/mortgage)

>50

2.5511

A.3

Gross premium income (GPI)

Periodic fee

Band Width (£2million of GPI)

Fee (£2/m or part m of GPI)

>0.5

327.0011

PLUS

Gross technical liabilities (GTL)

General Periodic fee

Band Width (£2million of GTL)

Fee (£2/£2m or part £2m of GTL)

>1

17.6811

For UK ISPVs the tariff rates are not relevant and a flat fee of 7 £114667 is payable in respect of each FCA financial year (the 12 months ending 31 March).

A.4

Adjusted annual gross premium income (AGPI)

General Periodic fee

Band Width (£2million of AGPI)

Fee (£2/£2m or part £2m of AGPI)

>1

512.0011

PLUS

Mathematical reserves (MR)

General Periodic fee

Band Width (£2million of MR)

Fee (£2/£2m or part £2m of MR)

>1

10.8611

A.5

Band Width (£2million of Active Capacity (AC))

Fee (£2/£2m or part £2m of AC)

>50

8.3111

A.6

Flat fee (£)2

327,14911

A.7

For class 1(C), (2) , (3) and (4)6 firms:

Band Width (£2million of Funds under Management (FuM))

Fee (£2/£2m or part £2m of FuM)

>10

7.0811

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%.2

A.9

Band Width (£2million of Gross Income (GI))

Fee (£2/£2m or part £2m of GI)

>1

982.6811

A.10

Band Width (No. of traders)

Fee (£2/person)

>12

5,033.0011

For firms carrying on auction regulation bidding, the fee in A.10 is calculated as above less 20% for each trader that carries on auction regulation bidding but not MiFID business bidding or dealing in investments as principal.

A.13

Band Width (£ thousands of annual income (AI))

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

>1002

2.8311

A.14

Band Width (£ thousands of annual income (AI))

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

>1002

1.9811

A.18

Band Width (£2 thousands of Annual Income (AI))

Fee (£2/£2 thousand or part £2 thousand of AI)

>100

15.3611

A.19

Band Width (£2 thousands of Annual Income (AI))

Fee (£2/£2 thousand or part £2 thousand of AI)

>100

1.8511

3A.21

Client money

Band Width (£ client money) (CM) held

Fee (£/£ millions or part £ million of CM)

less than £1 million5

128.2011

an amount equal to or greater than £1 million but less than or equal to £1 billion

96.1511

more than £1 billion5

64.1011

PLUS

Safe custody assets

Band Width (£ safe custody assets) (CA) held

Fee (£/£ millions or part £ million of CA)

less than £10 million5

0.5111

an amount equal to or greater than £10 million and less than or equal to £100 billion

0.395

more than £100 billion5

0.265

B. Market operators

48,21611

5B. Service Companies

Band Width

Flat fee (£)

Annual income up to and including £100,000

1,06711

Annual income over £100,000 up to and including £1,000,000

10,82411

Annual income over £1,000,000

48,21611

A service company that fails to provide income data for the relevant fee year is deemed to fall within the highest band width.

1B. Principal11 7benchmark administrators7

£196,80011

B. Benchmark administrators7

£49,20011

7

B. MTF operators

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

4CC1. Credit-related regulated activities with limited permission

Band Width (£ thousands of annual income (AI))

Fee (£)5

0 - 105

1005

>10 - 505

2505

>50 - 1005

4005

>1005

5005

5PLUS:

5Fee (£/£ thousand or part £ thousand of AI)

>2505

0.405

4CC2. Credit-related regulated activities

Band Width (£ thousands of annual income (AI))

Fee (£)

0 - 505

3005

>50 - 1005

5005

>1005

1,0005

5PLUS:

5Fee (£/£ thousand or part £ thousand of AI)

>2505

1.3011

Part 2

The tables below show 9the tariff rates (minimum fees) applicable to each of the fee blocks set out in Part 2 of FEES 4 Annex 1AR.

9Part 2(a) shows the tariff rates (minimum fees) payable to the FCA by FCA-authorised persons and Part 2(b) shows the tariff rates (minimum fees) payable to the FCA by PRA-authorised persons.

[Note: PRA-authorised persons will also pay minimum fees to the PRA as set out in Chapter 3 of the Fees Part of the

PRA Rulebook.]

9Part 2(a) tariff rates (minimum fees) payable to the FCA by FCA-authorised persons

A.0

(1)

£111,084 7 9unless it is a community finance organisation with a tariff base of:11

11(a)

up to and including 3 mortgages and/or home finance transactions, in which case a minimum fee of £166 is payable; or

11(b)

more than 3 but no more than 10 mortgages and/or home finance transactions, in which case a minimum fee of £562 is payable; or

11(c)

more than 10 but no more than 50 mortgages and/or home finance transactions, in which case a minimum fee of £1,042 is payable.

(2)

[deleted]9

(3)

[deleted]9

[deleted]9

(4)

[deleted]9

AP.0

Periodic fees payable under fee blocks A.2, A.7 to A.19and A. 21 5in 2 Part 1 multiplied by rate £0.11811

9Part 2(b) tariff rates (minimum fees) payable to the FCA by PRA-authorised persons

A.0

(1)

£542 unless:

(a)

It is a credit union that meets the conditions in (2), in which case the minimum fee payable is as set out in (2);

(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 (3)(a), in which case the minimum fee payable is £233; 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 (3)(b), in which case the minimum fee payable is £233;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 (3)(a) and (3)(b), in which case the minimum fee payable is £233.

(2)

The conditions referred to in (1)(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 £86 is payable; or

(b)

greater than 0.5millon but less than 2.0million, in which case a minimum fee of £292 is payable.

(3)

The conditions referred to in (1) 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.

Part 3

This table shows the modifications to fee tariffs that apply in respect of the FCA to incoming EEA firms and incoming Treaty firms which have established branches in the UK.

Activity Group

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

A.1

10%2

A.3

10%2

A.4

10%2

A.7

10%2

A.9

10%2

A.10

In relation to each trader that carries on auction regulation bidding but not MiFID business bidding or dealing in investments as principal, 100%.

In relation to all other traders, 10%2.

A.13

10%2

10A.18

10%

A.19

50%2

B. MTF operators

Not applicable

AP.0

100%

Note 1

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

Note 2

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