Content Options

View Options

Status: You are viewing the version of the handbook as on 2019-04-01.

FEES 7B.2 The DA levy

Obligation to pay DA levy

FEES 7B.2.1R

1A firm must pay the DA levy applicable to it:

  1. (1)

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

  2. (2)

    by 1 August or, if later, within 30 days of the date of the invoice in the fee year to which that sum relates.

Calculation of DA levy

FEES 7B.2.2R

1The DA levy is calculated as follows:

  1. (1)

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

  2. (2)

    for each of those activity groups, calculate the amount payable in the way set out in FEES 7B.2.3R;

  3. (3)

    add each of the amounts calculated under (2);

  4. (4)

    modify the result as indicated by the table in 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 (if applicable);

  5. (5)

    apply any applicable payment charge specified in FEES 4.2.4R to the amount in (4), 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

  6. (6)

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

FEES 7B.2.3R

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 2 of FEES 7B Annex 1R; and

    2. (b)

      the valuation date requirements in Part 3 of FEES 7B Annex 1R;

  2. (2)

    the amount payable in (1) is the amount payable by the firm with respect to that activity group.

FEES 7B.2.4R

1For the purposes of FEES 7B.2.3R:

  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 2 of FEES 7B Annex 1R 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 DA 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 4 rules incorporated into FEES 7B by cross-reference

FEES 7B.2.5G

1The FCA Handbook provisions relating to the DA levy are meant to follow closely the provisions relating to the payment of periodic fees under FEES 4.3.1R. In the interests of brevity, not all of these provisions are set out again in FEES 7B. In some cases, certain FEES 4 rules are applied to the payment of the DA levy by individual rules in FEES 7B. The rest are set out in the table in FEES 7B.2.7R.

FEES 7B.2.6R

1The rules set out in the table in FEES 7B.2.7R, and any other rules in FEES 4 included in FEES 7B by cross-reference, apply to the DA levy in the same way as they apply to periodic fees payable under FEES 4.3.1R.

FEES 7B.2.7R

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

FEES 4 rules incorporated into FEES 7B

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 4.2.10R

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 7B.2.8D

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

FEES 7B.2.9G

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

FEES 7B.2.10G

1In some cases, a FEES 4 rule incorporated into FEES 7B in the manner set out in FEES 7B.2.5G will refer to another rule in FEES 4 that has not been individually incorporated into FEES 7B. Such a reference should be read as being to the corresponding provision in FEES 7B. The main examples are set out in FEES 7B.2.11G.

FEES 7B.2.11G