FEES 7A.4 The SFGB pensions guidance advice levy

Obligation to pay SFGB pensions guidance levy

FEES 7A.4.1R

1A firm must pay the SFGB pensions guidance levy applicable to it:

  1. (1)

    in full and without deduction; and

  2. (2)

    in accordance with the rules in this section.

Calculation of SFGB pensions guidance levy

FEES 7A.4.2R

1The SFGB pensions guidance levy applicable to a particular firm is calculated as follows:

  1. (1)

    identify each of the activity groups in FEES 7A.1.2R(2) that apply to the business of the firm for the relevant period;

  2. (2)

    calculate the amount payable under FEES 7A.4.3R for each of those activity groups;

  3. (3)

    modify the result in accordance with, if applicable, FEES 7A.4.4R; and

  4. (4)

    apply any payment charge in FEES 4.2.4R.

FEES 7A.4.3R

1The amount payable for a particular activity group is calculated as follows:

  1. (1)
    1. (a)

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

      1. (i)

        the tariff base calculations in Part 3 of FEES 4 Annex 1AR; and

      2. (ii)

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

    2. (b)

      exclude best estimate liabilities for fees purposes in the calculation for fee-block A4;

  2. (2)

    use the figure in (1) to calculate the levy applicable for each band in FEES 7A Annex 3R;

  3. (3)

    add together the sums for each applicable band under (2);

  4. (4)

    the amount in (3) is the amount payable by the firm for that activity group.

FEES 7A.4.4R

1For the first fee year during which FEES 7A.4.2R applies to a firm’s permission to carry on a regulated activity, the SFGB pensions guidance levy applicable to that permission must be modified using the formula in FEES 4.2.6R.

FEES 7A.4.5R

1For FEES 7A.4.3R, a firm may apply the relevant tariff bases and rates to its non-UK business, as well as to its UK business, if:

  1. (1)

    it has reasonable grounds for believing that the cost of identifying the firm’s UK business separately from its non-UK business is disproportionate to the difference in the SFGB pensions guidance levy payable by it; and

  2. (2)

    it notifies the FCA in writing:

    1. (a)

      at the same time as it provides the information concerned under FEES 4.4 (Information on which fees are calculated); or

    2. (b)

      if earlier, at the time it pays the SFGB pensions guidance levy applicable to it.

FEES 7A.4.6R

1The SFGB pensions guidance levy is calculated using the same information that is used to calculate a firm’s periodic fee under FEES 4.

FEES 7A.4.7R

1Where a firm which has not complied with FEES 4.4.2R (information on which fees are calculated) in relation to a particular fee year the SFGB pensions guidance levy for that firm for that fee year is calculated using (where relevant) the valuation(s) of business used to calculate the SFGB pensions guidance levy for that firm for the previous fee year, multiplied by the factor of 1.10.

Application of FEES 4 to the SFGB pensions guidance levy

FEES 7A.4.8G
  1. (1)

    1The FCA Handbook provisions relating to the SFGB pensions guidance levy are meant to follow closely the provisions relating to the payment of periodic fees payable by an authorised person under FEES 4.

  2. (2)

    As such, the table in FEES 7A.4.11R lists rules in FEES 4 that also apply, in a modified form, to the SFGB pensions guidance levy.

FEES 7A.4.9R

1The rules in the table in FEES 7A.4.11R and any other rules in FEES included in FEES 7A.4 by cross-reference apply to the SFGB pensions guidance levy in the same way as they apply to periodic fees payable under FEES 4.

FEES 7A.4.10R

1A reference to a periodic fee in a FEES 4 rule incorporated into FEES 7A.4 must be read, for the purposes of applying that rule to the SFGB pensions guidance levy, as a reference to the SFGB pensions guidance levy.

FEES 7A.4.11R

1Table of rules in FEES 4 that also apply in FEES 7A.4.

FEES 4 incorporated into FEES 10

Description

Modifications

FEES 4.2.4R

Method of payment

None

FEES 4.2.7ER

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

None

FEES 4.2.7FR

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

None

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

None

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

None

FEES 4.2.8R

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

None

FEES 4.2.9R

Fee payers ceasing to hold relevant status or reducing the scope of their permission after start of relevant period

Reference to column (1) of the table in FEES 4.2.11R is a reference to FEES 7A.1.3G

FEES 4.3.7R

Groups of firms

Reference to FEES 4.2.1R is a reference to FEES 7A.4.1R

FEES 4.3.13R

Firms applying to cancel or vary permission before start of period

Reference to FEES 4.2.1R is a reference to FEES 7A.4.1R

FEES 4.3.17R

Firms applying to cancel or vary permission before start of period

Reference to FEES 4.2.7ER to FEES 4.2.7KR is a reference to FEES 7A.4.4R

Reference to FEES 4.2.1R is a reference to FEES 7A.4.1R

FEES 4.4.1R to FEES 4.4.6R

Information on which fees are calculated

None