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FEES App 4.3 Periodic fees

General

FEES App 4.3.1
  1. (1)

    1A cryptoasset business registered with the FCA under the Money Laundering Regulations must pay to the FCA the periodic fee applicable to it under FEES Appendix 4 Annex 2.

  2. (2)

    The payment in (1) must be made:

    1. (a)

      in full and without deduction; and

    2. (b)

      for every fee year during which, or part of which, it is registered with the FCA under the Money Laundering Regulations.

  3. (3)

    This provision is modified where FEES Appendix 4.3.5 applies, as stated in FEES Appendix 4.3.5.

[Note: Regulation 102 of the Money Laundering Regulations]

FEES App 4.3.2G

1The FCA will issue invoices at least 30 days before the dates on which payments fall due.

Method of payment

FEES App 4.3.3

1A periodic fee payable under FEES Appendix 4.3.1(1) must be paid in pounds sterling using either direct debit, credit transfer (BACS/CHAPS), cheque, Maestro, Visa Debit or by credit card (Visa/Mastercard only).

[Note: Regulation 102 of the Money Laundering Regulations]

Modifications for cryptoasset businesses becoming subject to periodic fees during the course of the fee year

FEES App 4.3.4
  1. (1)

    1A cryptoasset business which becomes registered with the FCA under the Money Laundering Regulations during the course of a fee year must pay a fee based on its projected valuation for the first twelve months of its new business.

  2. (2)

    This is the valuation provided by the cryptoasset business in the course of its application or if not provided at that time, the valuation provided subsequently.

[Note: Regulation 102 of the Money Laundering Regulations]

Calculating the fee in the first year

FEES App 4.3.5

1To calculate its fee in its first year of registration a cryptoasset business must apply the formula (A+B) x C, where:

  1. (1)

    A = the minimum fee set out in FEES Appendix 4 Annex 2, unless already paid in which case this figure is 0;

  2. (2)

    B = the amount arrived at by applying the tariff rates to the cryptoasset business’s projected valuation for the first twelve months of its new business, as provided by it in accordance with FEES Appendix 4.3.4; and

  3. (3)

    C = the number of calendar months (inclusive) between the calendar month during which the cryptoasset business was registered with the FCA under the Money Laundering Regulations and the last month of that fee year ÷ 12.

[Note: Regulation 102 of the Money Laundering Regulations]

Calculating fees in the second fee-year where the cryptoasset business is registered between 1 January and 31 March in its first fee year

FEES App 4.3.6

1When a cryptoasset business is registered with the FCA under the Money Laundering Regulations between 1 January and 31 March, its fee for the following fee year starting 1 April will be calculated from:

  1. (1)

    the projected valuation for the first twelve months of its new business that it provided in accordance with FEES Appendix 4.3.4; or

  2. (2)

    an annualised figure based on actual data provided by 30 April in the fee year following obtaining its registration.

The annualised figure referred to in (2) is calculated by applying the formula (A÷B) x 12, where:

A = the total income from the date of registration up to the cryptoasset business’s financial year end or 31 March (whichever is sooner) of its first fee year; and

B = the number of months in the period referred to in A.

[Note: Regulation 102 of the Money Laundering Regulations]

Calculating all other fees in the second and subsequent years of registration where a full year of tariff data is not available

FEES App 4.3.7D

1If it can, a cryptoasset business must provide data from a complete period that begins on or after the date that it was registered with the FCA.

[Note: Regulation 74A of the Money Laundering Regulations]

FEES App 4.3.8

If a cryptoasset business does not have sufficient tariff data to enable the periodic fee to be calculated in respect of that fee year, it must calculate an annualised figure based on actual data where possible, applying the formula (A÷B) x 12, where:

A = the total income from the date of registration with the FCA under the Money Laundering Regulations up to the cryptoasset business’s financial year end or 31 December (whichever is sooner); and

B = the number of months in the period referred to in A.

[Note: Regulation 102 of the Money Laundering Regulations]

FEES App 4.3.9G

1For example, the valuation date specified in FEES Appendix 4 Annex 2 is based on income for the financial year ending during the calendar year ending 31 December before the relevant fee year starting the following April. If the cryptoasset business is registered in October and its financial year ends in June, by April it will not have been able to report on the basis of its financial year. The value of A would therefore cover the period from October to December and the value of B would be two i.e. November and December.

If the cryptoasset business was registered in June and its financial year ended in October, the value of A would cover June to October and the value of B would be four i.e. July to October.

Time of payment

FEES App 4.3.10

1If a cryptoasset business’s periodic fee paid under this appendix for the previous fee year was £50,000 or more, it must pay its periodic fee for the current fee year in two instalments as follows:

  1. (1)

    an amount equal to 50% of the periodic fee payable for the previous fee year by:

    1. (a)

      1 April; or

    2. (b)

      if the fee is payable after 1 April, within 30 days of the date of the invoice, in the fee year to which that sum relates; and

  2. (2)

    the balance of the periodic fee due for the current fee year by:

    1. (a)

      1 September; or

    2. (b)

      if the fee is payable after 1 September, within 30 days of the date of the invoice, in the fee year to which that sum relates.

[Note: Regulation 102 of the Money Laundering Regulations]

FEES App 4.3.11

1If a cryptoasset business’ periodic fee paid under this appendix for the previous fee year was less than £50,000, it must pay the periodic fee within 30 days of the date of the invoice for the fee year to which that sum relates.

[Note: Regulation 102 of the Money Laundering Regulations]

Late payment

FEES App 4.3.12

1If a cryptoasset business registered with the FCA under the Money Laundering Regulations does not pay the total amount of the relevant periodic fee before the end of the date on which it is due, it must pay an additional amount as follows:

  1. (1)

    if the fee was not paid in full before the end of the due date, an administrative fee of £250; plus

  2. (2)

    interest on any unpaid part of the fee at the rate of 5% per annum above the Official Bank Rate from time to time in force, accruing on a daily basis from the date on which the amount concerned became due.

[Note: Regulation 102 of the Money Laundering Regulations]

Recovery of Fees

FEES App 4.3.13
  1. (1)

    1Regulation 101 of the Money Laundering Regulations permits the FCA to recover charges imposed on cryptoasset businesses by the FCA under the Money Laundering Regulations as a debt owed to the FCA.

  2. (2)

    The FCA will consider taking action for recovery through the civil courts.

[Note: Regulation 101 of the Money Laundering Regulations]

Information on which fees are calculated

FEES App 4.3.14D

1A registered cryptoasset business must submit to the FCA in writing the income information prescribed in FEES Appendix 4 Annex 2 as soon as reasonably practicable, and in any event, within two months of the valuation date. The FCA will use this information to calculate the periodic fee payable by the cryptoasset business.

[Note: Regulation 74A of the Money Laundering Regulations]