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FEES 7B.1 Application and Purpose


FEES 7B.1.1 R

1This chapter applies to every person listed in FEES 1.1.2R(5).


FEES 7B.1.2 G

1The purpose of this chapter is to set out the requirements on the persons listed in FEES 7B.1.1R to fund the Treasury’s costs relating to the provision of debt advice by the Devolved Authorities, and the related FCA collection costs.


FEES 7B.1.3 G

1The Treasury’s debt advice costs are defined in subsection 1 of section 137SB (Rules to recover debt advice expenses incurred by the devolved authorities) of the Act as the expenses incurred, or expected to be incurred, by the Devolved Authorities in connection with the provision of information and advice on debt to members of the public in Scotland, Wales and Northern Ireland.

FEES 7B.1.4 G
  1. (1)

    1Under section 137SB(1) of the Act, the Treasury may notify the FCA of the amount of the debt advice costs.

  2. (2)

    Sections 137SB(2) and (3) of the Act require the FCA to make rules requiring authorised persons, electronic money issuers or payment service providers to pay specified sums, or sums calculated in a specified way, to the FCA with a view to recovering:

    1. (a)

      the amount notified by the Treasury; and

    2. (b)

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

FEES 7B.1.5 G

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

FEES 7B.1.6 G

1Under section 137SB(8) of the Act, the FCA must pay to the Treasury the amounts that it receives under these rules, apart from amounts covering its collection costs (which it may keep).

FEES 7B.1.7 G

1The total amount raised by the DA levy may vary from year to year depending on the amount notified to the FCA by the Treasury.

FEES 7B.1.8 G

1These rules were made with the consent of the Treasury pursuant to section 137SB(5) of the Act.


FEES 7B.1.9 R

1A firm is not liable to pay a DA 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 7B.1.10 R

2In accordance with GEN 2.3 (General saving of the Handbook for Gibraltar), rules or guidance in FEES 7B 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 4 of FEES 7B Annex 1R, which may change each fee year.

FEES 7B.2 The DA levy

Obligation to pay DA levy

FEES 7B.2.1 R

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.

FEES 7B.2.1A G

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’sPart 4A permission was cancelled or varied applies to the person.

FEES 7B.2.1B R

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

FEES 7B.2.2 R

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.2.3 R

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.2.4 R

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’sUK 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.2.5 G

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 4rules 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.2.6 R

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.2.7 R

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


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 2FEES 4.4.6AR

Information on which fees are calculated

FEES 7B.2.8 D

1 FEES 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.2.9 G

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

FEES 7B.2.10 G

1In some cases, a FEES 4rule 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.2.11 G

FEES 7B Annex 1R DA levy for the period from 1 April 2023 to 31 March 2024 35


2Part 1

This table shows how the FCA links the regulated activities for which a firm has permission to activity groups (fee-blocks). A firm can use the table to identify which fee-blocks it falls into based on its permission for the purposes of the DA levy applicable to each activity group (fee-block).

Activity group

DA levy payer falls in the activity group if:

A.2 Home finance providers and administrators

It falls under activity group A.2 as defined in Part 1 of FEES 4 Annex 1AR.

CC.3 Consumer credit lending

Its permission is in relation to the following regulated activities:

- entering into a regulated credit agreement as lender (article 60B(1) of the Regulated Activities Order);

- exercising, or having the right to exercise, the lender’s rights and duties under a regulated credit agreement (article 60B(2) of the Regulated Activities Order);

which is carried on by way of business and relates to the following specified investments:

(a) a regulated credit agreement (excluding high-cost short-term credit, a home credit loan agreement and a bill of sale loan agreement);

(b) high-cost short-term credit;

(c) a home credit loan agreement;

(d) a bill of sale loan agreement.

Part 2

This table indicates the tariff base for each fee-block set out in Part 1. The tariff base in this Part is the means by which the FCA measures the amount of business conducted by a firm for the purposes of calculating the DA levy payable to the FCA by that firm.

Activity group

Tariff base

A.2 Home finance providers and administrators

The sterling value of any residential loans to individuals being the sum of gross unsecuritised and securitised balances (applying the definitions of ‘unsecuritised balances’ and ‘securitised balances’ set out in Section A: Balance Sheet of SUP 16 Annex 19BG.)

CC.3 Consumer credit lending

Value of lending in column A of data item CCR003 reported by firms under SUP 16 Annex 38AR, being the sum of data elements entered in rows:

- 1 Debt purchasing;

- 2 Hire purchase/conditional sale agreements;

- 3 Home credit loan agreements;

- 4 Bill of sale loan agreements;

- 5 Pawnbroking;

- 6 High-cost short-term credit;

- 11 Overdrafts;

- 12 Other running-account credit; and

- 8 Other lending.

Note: The tariff base for authorised professional firms that do not submit data item CCR003 under SUP 16 Annex 38AR is the same as set out above and should be reported to the FCA as required by FEES 4.4.1R and FEES 4.4.2R. The valuation date is in accordance with the CC.3 valuation date in Part 3.

Part 3

This table indicates the valuation date for each fee-block. A firm can calculate its tariff data in respect of the DA levy payable to the FCA by that firm.

Activity group

Valuation date

A.2 Home finance providers and administrators

The 31 December before the start of the period to which the fee applies or, if earlier, the date of the valuation as disclosed by the annual return made in the calendar year prior to the 31 December.

CC.3 Consumer credit lending

Value of lending under Part 2 valued at the firm’saccounting reference date in the calendar year ending 31 December occurring before the start of the period to which the DA levy applies.

Part 4

This table shows the tariff rates applicable to each of the fee-blocks set out in Part 1.

Activity group

DA levy payable

A.2 Home finance providers and administrators

Band width (£million of secured debt)


Fee (£/£m or part £m of secured debt) 3.757

1 3 5 6

CC.3 Consumer credit lending

Band width (£million of value of lending)

>0 (Note 1)

Fee (£/£m or part £m of value of lending) 23.967

1 3 5 6

Note 6:

Credit unions and community finance organisations do not pay any DA levy on the first £2,000,000 of value of lending.

4 4 4