FEES 6.2 Exemption

FEES 6.2.1ARRP
  1. (1)

    3Except as set out in (3), a participant firm which does not conduct business in respect of which the FSCS may pay compensation4 and has no reasonable likelihood of doing so is exempt from a specific costs levy, or a compensation costs levy, or both, provided that:

    1. (a)

      it has notified the FSCS in writing that those conditions apply; and

    2. (b)

      the conditions in fact continue to apply.

  2. (2)

    The exemption takes effect from the date on which the notice was received by the FSCS, subject to FEES 6.2.6 R.

  3. (3)

    The exemption in (1) does not apply in respect of a specific costs levy or compensation costs levy arising from the firm's membership of an FCA provider contribution class.

FEES 6.2.2RRP

FEES 6.2.1AR4 does not apply to a participant firm that may be subject to a claim under COMP 3.2.4 R.

FEES 6.2.3GRP

A participant firm to which COMP 3.2.4R4 applies must report annual eligible income in accordance with FEES 6.5.13 R. Such a participant firm may take advantage of the option to report its annual income attributable to business in respect of which the FSCS may pay compensation4.

FEES 6.2.4RRP

A participant firm which is exempt under FEES 6.2.1AR4 must notify the FSCS in writing as soon as reasonably practicable if the conditions in FEES 6.2.1AR4 no longer apply.

FEES 6.2.5G

A participant firm to which the conditions in FEES 6.2.1AR4 no longer apply will then become subject to FEES 6.3.

FEES 6.2.6RRP

If a participant firm ceases to conduct business that could give rise to a protected claim by an eligible claimant and notifies the FSCS of this under FEES 6.2.1AR4, it will be treated as a participant firm to which FEES 6.7.6 R applies until the end of the financial year4 of the compensation scheme in which the notice was given.

FEES 6.2.7GRP

The financial year of the compensation scheme is the twelve months ending on 31 March. The effect of FEES 6.2.6 R and FEES 6.2.1AR4 is that if a firm fails to notify FSCS of an exemption under FEES 6.2.1AR4 by 31 March it will be treated as non-exempt for the whole of the next financial year4.

2
FEES 6.2.8RRP

1For the purposes of FEES 6.2.1AR4 a participant firm will only be exempt from a specific costs levy or compensation costs levy for any given financial year4 if it met the conditions in FEES 6.2.1AR4 on 31 March of the immediately preceding financial year4.