FEES 7B.2 The DA levy
Obligation to pay DA levy
2Schedule 6A to the Act sets out a procedure to enable the FCA to cancel or vary the Part 4A permission of a person who it appears to the FCA is not carrying on a regulated activity. Paragraph 5 of that schedule sets out a procedure for annulment of cancellation or variation of Part 4A permission in specified circumstances. Where the FCA grants an application for annulment, paragraph 6 of Schedule 6A sets out its effect. In particular, the cancellation or variation of Part 4A permission is treated as if it had never taken place. As a result of the effect of annulment under Schedule 6A, the DA levy in relation to the period during which the person’s Part 4A permission was cancelled or varied applies to the person.
2Where the FCA grants a person’s application for annulment of a cancellation or variation of Part 4A permission under Schedule 6A to the Act and the person falls within FEES 7B.2.1R and the annulment takes effect after 1 August or after the invoice referred to in FEES 7B.2.1R(2) has been issued, then the date for payment referred to in FEES 7B.2.1R(2) does not apply, but the person must pay the DA levy applicable to it in full and without deduction, on the date on which the annulment takes effect.
Calculation of DA levy
1The DA levy is calculated as follows:
- (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)
for each of those activity groups, calculate the amount payable in the way set out in FEES 7B.2.3R;
- (3)
add each of the amounts calculated under (2);
- (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)
apply any applicable payment charge specified in FEES 4.2.4R to the amount in (4), provided that:
- (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.
1The amount payable by a firm with respect to a particular activity group is calculated as follows:
- (1)
calculate the size of the firm’s tariff base for that activity group using:
- (a)
the tariff base calculations in Part 2 of FEES 7B Annex 1R; and
- (b)
the valuation date requirements in Part 3 of FEES 7B Annex 1R;
- (a)
- (2)
the amount payable in (1) is the amount payable by the firm with respect to that activity group.
1For the purposes of FEES 7B.2.3R:
- (1)
a firm may apply the relevant tariff bases and rates to its non-UK business, as well as to its UK business, if:
- (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
- (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;
- (a)
- (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
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.
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.
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
Description |
|
Method of payment |
|
Modifications for persons becoming subject to periodic fees during the course of a fee year |
|
Calculating the fee in the firm’s first year of authorisation |
|
Calculating fees in the second fee year where the firm received permission between 1 January and 31 March in its first fee year |
|
Calculating all other fees in the second and subsequent years of authorisation where a full year of tariff data is not available |
|
Extension of time |
|
FEES 4.2.11R (first entry only) |
Due date and changes in permission for periodic fees |
Groups of firms |
|
Firms applying to cancel or vary permission before start of period |
|
Information on which fees are calculated |
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.
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.
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.