FEES 6 Annex 3 Financial Services Compensation Scheme - classes and sub-classes

Legal basis for activity in class A

accepting deposits.

BUT does not include any fee payer who either effects or carries out contracts of insurance.

Tariff base

Protected deposits as at 31 December

Sub-class B1

General Insurance Provision

Legal basis for activity in sub-class B1

• effecting contracts of insurance; and/or

• carrying out contracts of insurance;

that are general insurance contracts.

Sub-class B2

General Insurance Intermediation

Legal basis for activity in sub-class B2

Any of the following in respect of general insurance contracts:

• dealing in investments as agent;

• arranging (bringing about) deals in investments;

• making arrangements with a view to transactions in investments;

• assisting in the administration and performance of a contract of insurance;

• advising on investments;

• agreeing to carry on a regulated activity which is within any of the above.

Tariff base

Sub-class B1: Relevant net premium income.

Sub-class B2: annual eligible income where the annual income is calculated in accordance with that for fee-block A19 in part 2 of FEES 4 Annex 1 R.

Sub-class C1

Life and Pensions Provision

Legal basis for activity in sub-class C1

• effecting contracts of insurance; and/or

• carrying out contracts of insurance;

that are long-term insurance contract (including pure protection contracts).

Sub-class C2

Life and Pensions Intermediation

Legal basis for activity in sub-class C2

Any of the following:

• dealing in investments as agent;

• arranging (bringing about) deals in investments;

• making arrangements with a view to transactions in investments;

• assisting in the administration and performance of a contract of insurance;

• advising on investments;

• advising on pension transfers and pension opt-outs;

• giving basic advice on a stakeholder product.

• agreeing to carry on a regulated activity which is within any of the above;

in relation to any of the following:

• long term insurance contract (including pure protection contracts);

• rights under a stakeholder pension scheme or a personal pension scheme.

Tariff base

Sub-class C1: Relevant net premium income

Sub-class C2: Number of approved persons as at 31 December, calculated on the same basis as corresponding tariff base provisions for fee blocks A12, 13, and A14 in FEES 4 Annex 1 R (even if the firm's approved persons are not counted for the purposes of those fee blocks), and multiplied by the firm's estimated proportion of business falling within sub-class C2 provided or deemed as provided in accordance with FEES 6.

Sub-class D1

Fund Management

Legal basis for activity in sub-class D1

Any of the following:

• managing investments;

• establishing, operating or winding up a regulated collective investment scheme;

• establishing, operating or winding up an unregulated collective investment scheme;

• acting as trustee of an authorised unit trust scheme;

• acting as the depositary or sole director of an open-ended investment company;

• establishing, operating or winding up a stakeholder pension scheme;

• establishing, operating or winding up a personal pension scheme;

• agreeing to carry on a regulated activity which is within any of the above.

Sub-class D2

Investment Intermediation

Legal basis for activity in sub-class D2

Any of the following activities in relation to designated investment business

• dealing in investments as principal;

• dealing in investments as agent;

• arranging (bringing about) deals in investments;

• making arrangements with a view to transactions in investments;

• advising on investments;

• giving basic advice on a stakeholder product;

• safeguarding and administering of assets;

• arranging safeguarding and administering of assets;

• operating a multilateral trading facility;

• agreeing to carry on a regulated activity which is within any of the above;

BUT excluding activities that relate to long-term insurance contracts or rights under a stakeholder pension scheme or a personal pension scheme.

Tariff base

Sub-class D1: gross income. Gross income in respect of activities falling into fee block A9 must be calculated in accordance with the tariff base provisions for that fee block. In any case the calculation excludes any value attributable to activities which are simultaneously activities in sub-class D2 to the extent included there.

Sub-class D2: Number of approved persons or, for firms in contribution group A10 as at 31 March 2008, number of traders, as at 31 December, calculated on the same basis as corresponding tariff base provisions for fee blocks A12, A13, A10 and A14 in FEES 4 Annex 1 R, and multiplied by the firm's estimated proportion of business falling within sub-class D2 (except fee block A10) provided or deemed as provided in accordance with FEES 6. To avoid double-counting, when calculating the number of traders FSCS must deduct the number of approved persons who are also traders attributed to the firm for the purposes of FSA fee block A12, A13 or A14.

Sub-class E1

Home Finance Provision

Legal basis for activity in sub-class E1

Any of the activities below:

• entering into a home finance transaction;

• administering a home finance transaction;

• agreeing to carry on a regulated activity which is within any of the above.

Sub-class E2

Home Finance Intermediation

Legal basis for activity in sub-class E2

Any of the following activities:

• arranging (bringing about) a home finance transaction;

• making arrangements with a view to a home finance transaction;

• advising on home finance transactions;

• the activities of a home finance provider which would be arranging but for article 28A of the Regulated Activities Order (Arranging contracts or plans to which the arranger is party);

• agreeing to carry on a regulated activity which is within any of the above.

Tariff base

Sub-class E1: FSA periodic fees

Sub-class: E2: annual eligible income where the annual income is calculated in accordance with fee-block A18 in part 2 of FEES 4 Annex 1 R

(1)

Any reference in this annex to a specified investment includes a reference to rights to or interests in investments in that specified investment.

(2)

This paragraph deals with a tariff base calculation for a sub-class based on the calculations for corresponding specified fee blocks where this is not possible because there are no corresponding fee blocks. In this case the calculation is based on whichever of the specified fee blocks FSCS may reasonably choose.