Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

FEES 4A.2 Obligation to pay periodic fees

FEES 4A.2.1R

1A TP person must pay periodic fees applicable to it:

  1. (1)

    in full and without deduction by 1 August or, if later, within 30 days of the fee year to which the sum relates, unless modified by FEES 4A.2.2R; and

  2. (2)

    in accordance with the rules in this chapter.

A TP person or a CRO firm must pay any special project fees applicable to it under FEES 4A Annex 3R or FEES 4A Annex 4R respectively.

FEES 4A.2.2R

1If a TP firm’s periodic fee for the previous financial year was at least £50,000, the TP firm must pay:

  1. (1)

    an amount equal to 50% of the periodic fee payable for the previous year, by 1 April (or if later, within 30 days of the date of the invoice) in the financial year to which the sum due under FEES 4A.2.1R relates; and

  2. (2)

    the balance of the periodic fee due for the current financial year by 1 September (or if later, within 30 days of the date of the invoice) in the financial year to which that sum relates.

FEES 4A.2.2AR

2Where the FCA grants a person’s application for annulment of a cancellation or variation of Part 4A permission under Schedule 6A to the Act and the person falls within FEES 4A.2.1R and on the date the annulment has effect the date for payment specified in FEES 4.2.1R has passed, then that date for payment does not apply, but the person must pay the periodic fees applicable to it on the date on which the annulment takes effect.

FEES 4A.2.2BR

2Where the FCA grants a person’s application for annulment of a cancellation or variation of Part 4A permission under Schedule 6A to the Act and the person falls within FEES 4A.2.2R and:

  1. (1)

    the annulment takes effect after 1 April, or after the invoice referred to in FEES 4A.2.2(1) has been issued, then the date for payment in FEES 4A.2.2R(1) does not apply, but the person must, where the annulment takes effect after 1 April but before 1 September, pay:

    1. (a)

      an amount equal to 50% of the FCA periodic fee payable for the previous year on the date on which the annulment takes effect; and

    2. (b)

      the balance of the FCA periodic fee due for the current financial year by 1 September or, if later, within 30 days of the date of the invoice, in the financial year to which that sum relates; or

  2. (2)

    the annulment takes effect after 1 September or after the invoice referred to in FEES 4A.2.2R(2) has been issued, then the date for payment in FEES 4A.2.2R(2) does not apply, but the person must pay the total periodic fee due for the current financial year, on the date on which the annulment takes effect.

Calculation of periodic fees for TP persons, excluding TPR funds

FEES 4A.2.3R

1Periodic fees for TP persons, excluding TPR funds, are calculated as follows:

  1. (1)

    identify each of the activity groups set out in Parts 1, 3 and 4 of FEES 4A Annex 1R that apply to the business of the TP person (excluding TPR funds) for the relevant period (for this purpose, the activity groups under FEES 4A Annex 1R are defined in accordance with Part 1 of FEES 4 Annex 1AR and Part 2 of FEES 4 Annex 11R);

  2. (2)

    calculate the size of the TP person’s tariff base for the activity groups identified under (1) using:

    1. (a)

      the tariff base calculations in Part 3 of FEES 4 Annex 1AR and Part 3 of FEES 4 Annex 11R (including only business undertaken from a branch in the UK); and

    2. (b)

      the valuation date requirements in Part 5 of FEES 4 Annex 1AR and Part 4 of FEES 4 Annex 11R;

  3. (3)

    multiply the value of the TP person’s tariff base by the rate applicable to each band of tariff base under FEES 4A Annex 1R;

  4. (4)

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

  5. (5)

    add together the fixed sums, as set out in the tables in Parts 1, 3 and 4 of FEES 4A Annex 1R, applicable to each band identified under (1);

  6. (6)

    add together the amounts in (3), (4), and (5); and

  7. (7)

    the amount in (6) is the amount of periodic fees payable by the TP person.

FEES 4A.2.4R

1For the purposes of FEES 4A.2.3R:

  1. (1)

    a TP person may apply the relevant tariff bases and rates to its non-UK business, as well as to its UK business, if:

    1. (a)

      it has reasonable grounds for believing that the costs of identifying the TP person’s UK business separately from its non-UK business in the way described in Part 3 of FEES 4 Annex 1AR and Part 3 of FEES 4 Annex 11R are disproportionate to the difference in fees payable; and

    2. (b)

      it notifies the FCA in writing at the same time as it provides the information concerned under FEES 4A.2.5R, or, if earlier, at the time it pays the fees concerned.

  2. (2)

    for a TP person which has not complied with FEES 4A.2.5R for this period, the periodic fee is calculated using (where relevant) the valuation or valuations of business applicable to the previous period, multiplied by the factor of 1.10.

FEES 4A.2.4AG

2Schedule 6A to the Act sets out a procedure to enable the FCA to cancel or vary the Part 4A permission of a person who it appears to the FCA is not carrying on a regulated activity. Paragraph 5 of Schedule 6A to the Act sets out a procedure for annulment of cancellation or variation of Part 4A permission in specified circumstances. It is for the FCA to decide whether it is just and reasonable to annul the decision to cancel a person’s permission or vary the permission to reduce its scope. Where the FCA grants an application for annulment, paragraph 6 of Schedule 6A sets out its effect. In particular, the cancellation or variation of Part 4A permission is treated as if it had never taken place. As a result of annulment, the periodic fees for the period during which the person’s Part 4A permission was cancelled or varied apply to the person.

Information on which TP person’s periodic fees are calculated

FEES 4A.2.5R

1A TP person, excluding TPR funds, must notify to the FCA (in its own capacity and, if applicable, in its capacity as collection agent for the PRA) the value (as at the valuation date specified in Part 5 of FEES 4 Annex 1AR and Part 4 of FEES 4 Annex 11R) of each element of business on which the periodic fee payable by the TP person is to be calculated.

FEES 4A.2.6R

1A TP person must send to the FCA (in its own capacity and, if applicable, in its capacity as collection agent for the PRA) in writing the information required under FEES 4A.2.3R as soon as reasonably practicable, and in any event within two months, after the date specified as the valuation date in Part 5 of FEES 4 Annex 1AR and Part 4 of FEES 4 Annex 11R in relation to fees payable to the FCA.

FEES 4A.2.7R

1For a TP person which has not complied with FEES 4A.2.6R for the period covered by FEES 4A Annex 1R:

  1. (1)

    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; and

  2. (2)

    an additional fee of £250 is payable, unless the TP person also pays periodic fees under the PRA Rulebook in which case an additional fee of £125 is payable instead.

FEES 4A.2.8R

1If a TP person, other than a TPR fund, is subject to Solvency II Directive in activity group A.3 or A.4 and the PRA or the FCA has either:

  1. (1)

    not received the necessary tariff data on a timely basis in line with Part 3 and 5 of FEES 4 Annex 1AR; or

  2. (2)

    deemed the tariff data received to be incomplete or insufficiently reliable, by reference to a specific TP person or across all or part of the activity group, the FCA may use tariff data from the previous reporting period for the periodic fees calculation.

FEES 4A.2.8AR

2Where the FCA grants a person’s application for annulment of a cancellation or variation of Part 4A permission under Schedule 6A to the Act and on the date the annulment takes effect the date for notification to the FCA referred to in FEES 4A.2.6R of the information on which a person’s periodic fee is calculated has passed, the date for compliance referred to in FEES 4A.2.6R does not apply, but the person must comply with FEES 4A.2.5R and FEES 4A.2.6R within 2 months after the date on which the annulment takes effect.

Periodic fees commencement

FEES 4A.2.9R

1Periodic fees payable by TP persons under FEES 4A.2.1R relate to the whole of any fee year and are due for payment from the commencement of the fee year unless the modification in FEES 4A.2.9AR applies. Any payment made under FEES 4A.2.1R is not refundable.

FEES 4A.2.9AR

1Where a CRO firm becomes a supervised run-off firm, the periodic fee payable under FEES 4A.2.1R will be pro-rated over the remaining number of calendar months of the fee year that it is a supervised run-off firm.

Periodic fees for TPR funds

FEES 4A.2.10R

1Periodic fees for TPR funds are set out in FEES 4A Annex 2R.

FEES 4 rules incorporated into FEES 4A by cross-reference

FEES 4A.2.11G

1The FCA Handbook provisions relating to the periodic fees for TP persons including supervised run-off firms in FEES 4A are meant to follow closely the provisions relating to the general provisions under FEES 4. For brevity, not all of the provisions in FEES 4 are set out again in FEES 4A. In some cases, certain FEES 4 rules are applied to the payment of the periodic fees for TP persons by individual rules in FEES 4A. The rest are set out in the table in FEES 4A.2.13R.

FEES 4A.2.12R

1The FEES 2 and FEES 4 rules set out in the table in FEES 4A.2.13R and any other rules in FEES 4 included in FEES 4A by cross-reference apply to the periodic fees for TP persons in the same way as they apply to periodic fees payable under FEES 4.

FEES 4A.2.13R

1Table of rules in FEES 4 that also apply to FEES 4A to the extent that in FEES 4 they apply to fees payable to the FCA

FEES 4 rules incorporated into FEES 4A

Description

Applicable to TP persons other than TPR funds

Applicable to TPR funds

FEES 4.2.4R

Method of payment

Yes

Yes

FEES 4.2.10R

Extension of time

Yes

Yes

FEES 4.3.7R

Groups of firms

Yes

Yes

FEES 4.3.17R

Firms acquiring business from other firms

Yes

Yes