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 7A.1 Application and Purpose

Application

FEES 7A.1.1R

1This chapter applies to the persons listed in:

  1. (1)

    FEES 1.1.2R(5) in relation to the SFGB money advice levy and SFGB debt advice levy; and

  2. (2)

    FEES 7A.1.2R in relation to the SFGB pensions guidance levy.

FEES 7A.1.2R

1The SFGB pensions guidance levy applies to a firm that:

  1. (1)

    has a Part 4A Permission2

  2. (2)

    falls within one or more of the following activity groups listed in Part 1 of FEES 4 Annex 1AR:

    1. (a)

      A.1 Deposit acceptors;

    2. (b)

      A.4 Insurers – life;

    3. (c)

      A.7 Portfolio managers except Class (1)A firms;

    4. (d)

      A.9 Managers and depositaries of investment funds, and operators of collective investment schemes or pension schemes; and

    5. (e)

      A.13 Advisors, arrangers, dealers or brokers.

Purpose

FEES 7A.1.3G

1The purpose of this chapter is to set out the requirements on the persons listed in FEES 7A.1.1R to fund the Secretary of State costs relating to the SFGB, and the related FCA collection costs.

Background

FEES 7A.1.4G

1Under section 137SA(1) (Rules to recover expenses relating to the single financial guidance body) of the Act, the Secretary of State may, from time to time, notify the FCA of the expenses incurred, or expected to be incurred, in connection with the operation of the SFGB or under section 12 of the Financial Guidance and Claims Act 2018. Expenses arise under section 12 when the Secretary of State:

  1. (1)

    pays grants or makes loans, or gives any other form of financial assistance, to meet expenditure in connection with the establishment of the SFGB; and

  2. (2)

    pays grants or makes loans, or gives any other form of financial assistance, to the SFGB for the purpose of enabling the SFGB to carry out its functions.

FEES 7A.1.5G

1When the Secretary of State has notified the FCA under section 137SA(1) , under subsections (2) and (3) the FCA must make rules requiring authorised persons, electronic money issuers or payment service providers (or any specified class of the same) to pay specified sums, or sums calculated in a specified way to the FCA with a view to recovering:

  1. (1)

    the amount notified by the Secretary of State; and

  2. (2)

    expenses incurred by the FCA in connection with its functions under section 137SA of the Act.

FEES 7A.1.6G

1This chapter contains the rules referred to in FEES 7A.1.4G(2).

FEES 7A.1.7G

1Under section 137SA(8) of the Act, the FCA must pay to the Secretary of State the amounts that it receives pursuant to the rules in this chapter, apart from amounts covering its collection costs (which the FCA may keep).

FEES 7A.1.8G

1The total amount raised by the SFGB levy may vary from year to year depending on the amount notified to the FCA by the Secretary of State.

Exemption

FEES 7A.1.9R

1A firm is not liable to pay a SFGB levy in relation to payment services or electronic money issuance if it is the Bank of England, a government department, a local authority, a municipal bank or the National Savings Bank.

Gibraltar-based firms

FEES 7A.1.10R
  1. (1)

    3In accordance with GEN 2.3 (General saving of the Handbook for Gibraltar), rules or guidance in FEES 7A that immediately before IP completion day applied in relation to or in connection with Gibraltar will continue to apply after IP completion day. The exceptions to this provision are the fee rates set out in Part 1 of FEES 7A Annex 1R , Part 4 of FEES 7A Annex 2R and 7A Annex 3R which may change each fee year.

  2. (2)

    The modifications that will continue to apply to Gibraltar-based firms (as defined in GEN 2.3) in relation to payment of the SFGB money advice levy are:

  3. Activity group

    Percentage deducted from the tariff payable under FEES 7A Annex 1R applicable to the Gibraltar-based firm

    A.1

    10%

    A.3

    10%

    A.4

    10%

    A.7

    10%

    A.9

    10%

    A.10

    10%

    A.13

    10%

    A.18

    10%

    A.19

    50%

    B. MTF and OTF operators

    Not applicable

    AP.0

    100%

    G.2

    40%

    G.3

    40%

    G.10

    40%

    Note 1

    The modifications to fee tariffs payable by a Gibraltar-based firm apply only in relation to the relevant regulated activities of the firm which are carried on in the United Kingdom.

    Note 2

    The FCA minimum fees described in FEES 7A Annex 1R apply in full.