Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

FEES 7C.1 Application and purpose

Application

FEES 7C.1.1 R

1This chapter applies to the persons listed in:

  1. (1)

    FEES 1.1.2R(8) in relation to the TPR SFGB money advice levy and TPR SFGB debt advice levy; and

  2. (2)

    FEES 7C.1.2R in relation to the TPR SFGB pensions guidance levy.

FEES 7C.1.2 R

1The TPR SFGB pensions guidance levy applies to a TP firm that falls within one or more of the following activity groups listed in Part 1 of FEES 4 Annex 1AR:

  1. (1)

    A.1 Deposit acceptors;

  2. (2)

    A.4 Insurers - life;

  3. (3)

    A.7 Portfolio managers except Class (1)A firms;

  4. (4)

    A.9 Managers and depositaries of investment funds, and operators of collective investment schemes or pension schemes; and

  5. (5)

    A.13 Advisors, arrangers, dealers or brokers.

Purpose

FEES 7C.1.3 G

1The purpose of this chapter is to set out the requirements on the persons listed in FEES CB.1.1R to fund the Secretary of State costs relating to the SFGB, and the related FCA collection costs. For the avoidance of doubt, such persons also include supervised run-off firms.

Background

FEES 7C.1.4 G

1Under section 137SA(1) (Rules to recover expenses relating to the single financial guidance body) of the Act, the Secretary of State may, from time to time, notify the FCA of the expenses incurred, or expected to be incurred, in connection with the operation of the SFGB or under section 11 of the Financial Guidance and Claims Act 2018. Expenses arise under section 11 when the Secretary of State:

  1. (1)

    pays grants or makes loans, or gives any other form of financial assistance, to meet expenditure in connection with the establishment of the SFGB; and

  2. (2)

    pays grants or makes loans, or gives any other form of financial assistance, to the SFGB for the purpose of enabling the SFGB to carry out its functions.

FEES 7C.1.5 G

1When the Secretary of State has notified the FCA under section 137SA(1), under subsections (2) and (3) the FCA must make rules requiring authorised persons, electronic money issuers or payment service providers (or any specified class of the same) to pay specified sums, or sums calculated in a specified way to the FCA with a view to recovering:

  1. (1)

    the amount notified by the Secretary of State; and

  2. (2)

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

Regulations 28 and 34 of the EU Exit Passport Regulations provide that supervised run-off firms are treated as having Part 4A permission or a variation to that permission.

FEES 7C.1.6 G

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

FEES 7C.1.7 G

1Under section 137SA(8) of the Act, the FCA must pay to the Secretary of State the amounts that it receives pursuant to the rules in this chapter, apart from amounts covering its collection costs (which the FCA may keep).

FEES 7C.1.8 G

1The total amount raised by the TPR SFGB levy may vary from year to year depending on the amount notified to the FCA by the Secretary of State.

FEES 7C.3 The TPR SFGB money advice levy and debt advice levy

Obligation to pay TPR SFGB money advice levy or debt advice levy

FEES 7C.3.1 R

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

  1. (1)

    in full and without deduction by 1 August (or, if later, within 30 days of the date of the invoice) in the financial year to which the sum relates, unless modified by FEES 7C.3.2R; and

  2. (2)

    in accordance with the rules in this chapter.

FEES 7C.3.2 R

1If a firm’s TPR SFGB money advice levy or TPR SFGB debt advice levy for the previous financial year was at least £50,000, the firm must pay:

  1. (1)

    an amount equal to 50% of the TPR SFGB money advice levy or TPR SFGB debt advice levy payable for the previous year, by 1 April (or if later, within 30 days of the date of the invoice) in the financial year to which the sum due under FEES 7C.3.1R relates; and

  2. (2)

    the balance of the TPR SFGB money advice levy or TPR SFGB debt advice levy due for the current financial year by 1 September (or if later, within 30 days of the date of the invoice) in the financial year to which that sum relates.

Calculation of the TPR SFGB money advice levy and debt advice levy

FEES 7C.3.3 R

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

  1. (1)

    identify each of the activity groups set out in Parts 1 to 3 of FEES 7C Annex 1R and Part 1 of FEES 7C Annex 2R that apply to the business of the firm for the relevant period (for this purpose, the activity groups under FEES 7C Annex 1R are defined in accordance with Part 1 of FEES 4 Annex 1AR and Parts 2 and 2A of FEES 4 Annex 11R, and the activity groups under FEES 7C 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 7C.3.4R;

  3. (3)

    add each of the amounts calculated under (2);

  4. (4)

    work out whether a minimum fee is payable under Parts 2 to 4 of FEES 7C Annex 1R and if so how much; and

  5. (5)

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

FEES 7C.3.4 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 3 of FEES 4 Annex 1AR, Part 3 of FEES 4 Annex 11R and Part 2 of FEES 7C Annex 2R (including only business undertaken from a branch in the UK); and

    2. (b)

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

  2. (2)

    use the figure in (1) to calculate which of the bands set out in the tables in Parts 1 to 3 of FEES 7C Annex 1R and Part 4 of FEES 7C Annex 2R the firm falls into;

  3. (3)

    add together the fixed sums, as set out in the tables in Parts 1 to 3 of FEES 7C Annex 1R and Part 4 of FEES 7C 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 7C.3.5 R

1For the purposes of FEES 7C.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 its UK business separately from its non-UK business in the way described in Part 3 of FEES 4 Annex 1AR, Part 3 of FEES 4 Annex 11R and Part 2 of FEES 7C Annex 2R 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 7C.3.4R(1), or, if earlier, at the time it pays the TPR SFGB money advice levy or TPR SFGB debt advice levy applicable to it.

  2. (2)

    for a firm which has not complied with FEES 4A.2.6R for this period, the TPR SFGB money advice levy and TPR SFGB debt advice levy are calculated using (where relevant) the valuation or valuations of business applicable to the previous period, multiplied by the factor of 1.10.

TPR SFGB money advice levy and TPR SFGB debt advice levy commencement

FEES 7C.3.6 R

1The TPR SFGB money advice levy and TPR SFGB debt advice levy under FEES 7C relate to the whole of any fee year and are due for payment from the commencement of the fee year. Any payment made under FEES 7C.3.1R is not refundable.

FEES 7C.4 The TPR SFGB pensions guidance advice levy

Obligation to pay TPR SFGB pensions guidance levy

FEES 7C.4.1 R

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

  1. (1)

    in full and without deduction by 1 August (or, if later, within 30 days of the date of the invoice) in the financial year to which the sum relates; and

  2. (2)

    in accordance with the rules in this section.

Calculation of TPR SFGB pensions guidance levy

FEES 7C.4.2 R

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

  1. (1)

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

  2. (2)

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

  3. (3)

    add together each of the amounts calculated under (2).

FEES 7C.4.3 R

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 1R (including only business undertaken from a branch in the UK); 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 7C 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 7C.4.4 R

1For the purposes of FEES 7C.4.3R:

  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 its UK business separately from its non-UK business in the way described in Part 3 of FEES 4 Annex 1AR 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 7C.4.4R(1), or, if earlier, at the time it pays the TPR SFGB pensions guidance levy applicable to it.

  2. (2)

    for a firm which has not complied with FEES 7C.4.3R(1) for this period, the TPR SFGB pensions guidance 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 7C.4.5 R

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

TPR SFGB pensions guidance levy commencement

FEES 7C.4.6 R

1The TPR SFGB pensions guidance levy under FEES 7C relates to the whole of any fee year and is due for payment from the commencement of the fee year. Any payment made under FEES 7C.4.1R is not refundable.

FEES 7C.5 FEES 4 rules incorporated into FEES 7C by cross-reference

FEES 7C.5.1 R

1The Handbook provisions relating to FEES 7C are meant to follow closely the provisions relating to the payment of the periodic fees in FEES 4. In the interests of brevity, not all of these provisions are set out again in FEES 7C. In some cases, certain FEES 4rules are applied to the payment of the TPR SFGB money advice levy, TPR SFGB debt advice levy and TPR SFGB pensions guidance levy by individual rules in FEES 7C. The rest are set out in the table in FEES 7C.5.3R.

FEES 7C.5.2 R

1The rules set out in the table in FEES 7C.5.3R and any other rules in FEES 4 included in FEES 7C by cross-reference apply to the TPR SFGB money advice levy, TPR SFGB debt advice levy and TPR SFGB pensions guidance levy in the same way as they apply to periodic fees payable under FEES 4.

FEES 7C.5.3 R

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

FEES 4 rules incorporated into FEES 7C

Description

FEES 4.2.4R

Method of payment

FEES 4.2.10R

Extension of time

FEES 4.3.7R

Groups of firms

FEES 4.3.17R

Firms acquiring businesses from other firms

FEES 7C Annex 1R TPR SFGB money advice levy for the period from 1 April 2019 to 31 March 2020

R

1This table shows the TPR SFGB money advice levy applicable to each activity group (fee-block).

Activity group

TPR SFGB money advice levy payable

Part 1 TP firms

A.1

Band Width (£ million of Modified Eligible Liabilities (MELs))

Fee (£/£m or part £m of MELs)

>10

[tbc]

A.2

Band Width (no. of mortgages and/or home finance transactions)

Fee (£/mortgage)

>50

[tbc]

A.3

Gross written premium for fees purposes (GWP

Band Width (£ million of GWP)

Fee (£/£m or part £m of GWP)

>0.5

[tbc]

PLUS

Best estimate liabilities for fees purposes (BEL)

Band Width (£ million of BEL)

Fee (£/£m of part £m of BEL)

>1

[tbc]

A.4

Gross written premium for fees purposes (GWP)

Band Width (£ million of GWP)

Fee (£/£m or part £m of GWP)

>1

[tbc]

PLUS

Best estimate liabilities for fees purposes (BEL)

Band Width (£ million of BEL)

Fee (£/£m or part £m of BEL)

>1

[tbc]

A.7

For class 1(C), (2), (3) and (4) firms:

Band Width (£ million of Funds under Management (FuM))

Fee (£/£m of part £m of FuM)

>10

[tbc]

Class 1(C) firms are defined in FEES 4 Annex 1AR.

A.9

Band Width (£ million of Gross Income (GI))

Fee (£/£m of part £m of GI)

>1

[tbc]

A.10

Band Width (no. of traders)

Fee (£/trader)

>1

[tbc]

A.13

For class (2) firms

Band Width (£ thousands of annual income (AI))

Fee (£/£ thousand or part £ thousand of AI)

>100

[tbc]

For a professional firm in A.13 the fee is calculated as above less 10%.

A.14

Band Width (£ thousands of annual income (AI))

Fee (£/£ thousand or part £ thousand of AI)

>100

[tbc]

A.18

Band Width (£ thousands of Annual Income (AI))

Fee ((£/£ thousand or part £ thousand of AI)

>100

[tbc]

A.19

Band Width (£ thousands of Annual Income (AI))

Fee (£/£ thousand or part £ thousand of AI)

>100

[tbc]

CC.2

Minimum fee (£)

[tbc]

£ thousands of annual income (AI)

Fee (£/£ thousand or part £ thousand of AI

>250

[tbc]

Part 2 TA PI firms and TA RAISP firms

G.3

Minimum fee (£)

[tbc]

£ thousands or part £ thousand of Relevant Income

Fee (£/£thousand or part £ thousand of Relevant Income)

>100

[tbc]

Part 3 TA EMI firms

G.10

Minimum fee (£)

[tbc]

£ million or part £m of average outstanding electronic money (AOEM)

Fee (£/£m or part £m of AOEM)

>5.0

[tbc]

£ thousands of annual income (AI)

Fee (£/£ thousand or part £ thousand of AI

>250

[tbc]

Part 4

(1) This Part sets out the minimum TPR SFGB money advice levy applicable to the TPR firms specified in (3) below.

(2) The minimum TPR SFGB money advice levy payable by any firm referred to in (3) is £[tbc].

(3) A TP firm is referred to in this paragraph if it falls within the following activity groups: A.1; A.2; A.3; A.4; A.7; A.9; A.10; A.13; A.14; A.18; and A.19.

FEES 7C Annex 2R TPR SFGB debt advice levy for the period from 1 April 2019 to 31 March 2020

R

1This table shows the TPR SFGB debt advice levy applicable to each activity group (fee-block).

Part 1

Activity group

A TP firm 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

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.

Part 3

This table indicates the valuation date for each fee-block. A firm can calculate its tariff data in respect of the TPR SFGB debt advice 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’s accounting reference date in the calendar year ending 31 December occurring before the start of the period to which the TPR SFGB debt advice levy applies.

Part 4

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

Activity group

TPR SFGB debt advice levy payable

A.2 Home finance providers and administrators

Band width (£ million of secured debt)

Fee (£/£m or part £m of secured debt)

>0

[tbc]

CC.3 Consumer credit lending

Band width (£ million of value of lending)

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

>0 (Note 1)

[tbc]

Note

(1) Credit unions and community finance organisations do not pay any TPR SFGB debt advice levy on the first £2,000,000 of value of lending.

FEES 7C Annex 3R TPR SFGB pensions guidance levy for the period 1 April 2019 to 31 March 2020

R

1This table shows the TPR SFGB pensions guidance levy applicable to each activity group (fee-block).

Activity group

SFGB pensions guidance levy payable

TP firms

A.1

Band width (£ million of modified eligible liabilities (MELs))

Fee (£/£m or part £m of MELS)

>10

[tbc]

A.4

Gross written premium for fees purposes (GWP)

Band Width (£ million of GWP)

Fee (£/£m or part £m of GWP)

>1

[tbc]

A.7

For class 1(B), 1(C), (2) and (3) firms:

Band width (£ million of funds under management (FuM))

Fee (£/£m or part £m of FuM)

>10

[tbc]

A.9

Band width (£ million of gross income (GI))

Fee (£/£m or part £m of GI)

>1

[tbc]

A.13

Band width (£ thousands of annual income (AI))

Fee (£/£ thousand or part of £ thousand of AI)

>100

[tbc]