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Status: You are viewing the version of the handbook as on 2018-07-02.

FEES 7A.3 The SFGB money advice levy and debt advice levy

Obligation to pay money advice levy or debt advice levy

FEES 7A.3.1R

1A firm must pay the SFGB money advice levy or SFGB debt advice levy applicable to it:

  1. (1)

    in full and without deduction (unless permitted or required by a provision in FEES); and

  2. (2)

    in accordance with the provisions of FEES 4.3.6R as modified by FEES 7A.3.2R.

FEES 7A.3.2R
  1. (1)

    1For the purposes of FEES 7A.3.1R(2), FEES 4.3.6R(1C) to (1E) is modified so that if a firm’s periodic fee for the previous financial year were at least £50,000, the firm must pay:

    1. (a)

      an amount equal to 50% of the SFGB money advice or SFGB debt advice levy payable for the previous year, by 1 April in the financial year to which the sum due under FEES 7A.3.1R relates; and

    2. (b)

      the balance of the SFGB money advice levy or SFGB debt advice levy due for the current financial year by 1 September in the financial year to which that sum relates.

  2. (2)

    For the purposes of FEES 7A.3.1R(2), FEES 4.3.6R(2) is modified so that if the firm’s periodic fee for the previous financial year was less than £50,000, the firm must pay its SFGB money advice levy or SFGB debt advice levy in full by 1 July in the financial year to which that sum relates.

Calculation of the money advice levy and debt advice levy

FEES 7A.3.3R

1The SFGB money advice levy and SFGB debt advice levy are each calculated as follows:

  1. (1)

    identify each of the activity groups set out in Part 1 of FEES 7A Annex 1R and Part 1 of FEES 7A Annex 2R that apply to the business of the firm for the relevant period (for this purpose, the activity groups under FEES 7A Annex 1R are defined in accordance with Part 1 of FEES 4 Annex 1AR and the activity groups under FEES 7A Annex 2R are defined in accordance with Part 1 of that Annex);

  2. (2)

    calculate, for each of those activity groups identified in (1), the amount payable in the way set out in FEES 7A.3.4R;

  3. (3)

    add each of the amounts calculated under (2);

  4. (4)

    work out whether a minimum fee is payable under Part 2 of FEES 7A Annex 1R and if so how much;

  5. (5)

    add together the amounts calculated under (3) and (4);

  6. (6)

    modify the result as indicated by (if applicable) FEES 4.2.7ER, FEES 4.2.7FR, FEES 4.2.7GR, FEES 4.2.7HR, FEES 4.2.7IR, FEES 4.2.7JG and FEES 4.2.7KR;

  7. (7)

    apply any applicable payment charge specified in FEES 4.2.4R to the amount in (6), provided that:

    1. (a)

      for payment by direct debit, successful collection of the amount due is made at the first attempt by the FCA; or

    2. (b)

      for payment by credit transfer, the amount due is received by the FCA on or before the due date; and

  8. (8)

    make the calculations using information obtained in accordance with FEES 4.4 in the case of FEES 7A Annex 1R and Part 3 of FEES 7A Annex 2R in the case of Part 2 of that Annex.

FEES 7A.3.4R

1The amount payable by a firm with respect to a particular activity group is calculated as follows:

  1. (1)

    calculate the size of the firm’s tariff base for that activity group using:

    1. (a)

      the tariff base calculations in Part 3 of FEES 4 Annex 1AR, Part 3 of FEES 4 Annex 11 and Part 2 of FEES 7A Annex 2R; and

    2. (b)

      the valuation date requirements in Part 5 of FEES 4 Annex 1AR, Part 3 of FEES 4 Annex 11R and Part 3 of FEES 7A Annex 2;

  2. (2)

    use the figure in (1) to calculate which of the bands set out in the table in Part 1 of FEES 7A Annex 1R and Part 4 of FEES 7A Annex 2R the firm falls into;

  3. (3)

    add together the fixed sums, as set out in the table in Part 1 of FEES 7A Annex 1R and Part 4 of FEES 7A Annex 2R, applicable to each band identified under (2);

  4. (4)

    the amount in (3) is the amount payable by the firm with respect to that activity group.

FEES 7A.3.5R

1For the purposes of FEES 7A.3.4R:

  1. (1)

    a firm 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 firm’s UK business separately from its non-UK business in the way described in Part 3 of FEES 4 Annex 1AR and Part 1 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 4.4 (Information on which fees are calculated), or, if earlier, at the time it pays the fees concerned;

  2. (2)

    for a firm which has not complied with FEES 4.4.2R (information on which fees are calculated) or FEES 4.4.8D (Information relating to payment services and the issuance of electronic money) for this period, the SFGB money advice levy and SFGB debt advice levy is calculated using (where relevant) the valuation or valuations of business applicable to the previous period, multiplied by the factor of 1.10.

FEES 7A.3.6R

1The modifications in Part 3 of FEES 4 Annex 2AR and Part 7 of FEES 4 Annex 11R apply.

Amount payable by the Society of Lloyds

FEES 7A.3.7R

1The SFGB money advice levy in relation to the Society is specified against its activity group in Part 1 of FEES 7A Annex 1R.

FEES 4 rules incorporated into FEES 7A by cross-reference

FEES 7A.3.8G

1The FCA Handbook provisions relating to the SFGB money advice levy and SFGB debt advice levy are meant to follow closely the provisions relating to the payment of periodic fees under FEES 4.3.1R. For brevity, not all of these provisions are set out again in FEES 7A. In some cases, certain FEES 4 rules are applied to the payment of the SFGB money advice levy and SFGB debt advice levy by individual rules in FEES 7A. The rest are set out in the table in FEES 7A.3.10R.

FEES 7A.3.9R

1The rules set out in the table in FEES 7A.3.10R and any other rules in FEES 4 included in FEES 7A by cross-reference apply to the SFGB money advice levy and SFGB debt advice levy in the same way as they apply to periodic fees payable under FEES 4.3.1R.

FEES 7A.3.10R

1Table of rules in FEES 4 that also apply to FEES 7A to the extent that in FEES 4 they apply to fees payable to the FCA

FEES 4 rules incorporated into FEES 7A

Description

FEES 4.2.4R

Method of payment

FEES 4.2.7ER

Modifications for persons becoming subject to periodic fees during the course of a fee year

FEES 4.2.7FR

Calculating the fee in the firm’s first year of authorisation

FEES 4.2.7GR

Calculating fees in the second fee-year where the firm received permission between 1 January and 31 March in its first fee year

FEES 4.2.7HR to FEES 4.2.7KR

Calculating all other fees in the second and subsequent years of authorisation where a full year of tariff data is not available

FEES 4.2.8R

How FEES 4.2.7R applies in relation to an incoming EEA firm or an incoming Treaty firm

FEES 4.2.10R

Extension of time

FEES 4.2.11R (first entry only)

Due date and changes in permission for periodic fees

FEES 4.3.7R

Groups of firms

FEES 4.3.13R

Firms applying to cancel or vary permission before start of period

FEES 4.3.17R

Firms acquiring businesses from other firms

FEES 4.4.1R to FEES 4.4.6R

Information on which fees are calculated

FEES 7A.3.11D

1FEES 4.4.7D to FEES 4.4.9D (Information relating to payment services and the issuance of electronic money) also apply to FEES 7A.

FEES 7A.3.12R

1References in a FEES 4 rule incorporated into FEES 7A by cross-reference to a periodic fee should be read as being to the SFGB money advice levy and SFGB debt advice levy. References in a FEES 4 rule incorporated into FEES 7A to market operators, service companies, MTF operators, investment exchanges, or designated professional bodies should be disregarded.

FEES 7A.3.13G

1In some cases, a FEES 4 rule incorporated into FEES 7A in the manner set out in FEES 7A.3.8G will refer to another rule in FEES 4 that has not been individually incorporated into FEES 7A. Such a reference should be read as being to the corresponding provision in FEES 7A. The main examples are set out in FEES 7A.3.14G.

FEES 7A.3.14G

1Table of FEES 4 rules that correspond to FEES 7A rules

FEES 4 rules

Corresponding FEES 7A rules

FEES 4.2.1R

FEES 7A.3.1R

FEES 4.3.1R

FEES 7A.3.3R

FEES 4.3.3R

FEES 7A.3.3R

FEES 4.3.3AR

FEES 7A.3.3R

FEES 4.3.12R

FEES 7A.3.6R

FEES 4.3.12AR

FEES 7A.3.6R

Part 1 of FEES 4 Annex 2AR

Part 1 of FEES 7A Annex 1R

Part 2 of FEES 4 Annex 11R

Part 1 of FEES 7A Annex 1R

Part 5 of FEES 4 Annex 11R

Part 1 of FEES 7A Annex 1R