FEES TP 13 Transitional provisions relating to the calculation of tariff bases for insurers

1FEES 13.1

Application

FEES 13.1.1

R

(1)

FEES TP 13 applies to:

(a)

a firm in activity groups A.3 and/or A.4 in FEES 4 Annex 1AR (FCA activity groups, tariff bases and valuation dates); or

(b)

a firm in industry blocks 2 and 4 in FEES 5 Annex 1R (Annual General Levy Payable in Relation to the Compulsory Jurisdiction); or

(c)

a VJ participant in industry blocks 2V and/or 3V in FEES 5 Annex 2R (Annual Levy Payable in Relation to the Voluntary Jurisdiction).

(2)

FEES TP 13 modifies:

(a)

FEES 4.2.7R and FEES 4.2.7BR;

(b)

FEES 4.3.3R;

(c)

FEES 4.4.1R and FEES 4.4.2R;

(d)

FEES 4 Annex 1AR, Part 5;

(e)

FEES 5.3.8R;

(f)

FEES 5.4.1R;

(g)

FEES 5.8.1R, FEES 5.8.2R and FEES 5.8.3G; and

(h)

FEES 5 Annex 2R.

FEES 13.1.2

G

FEES TP 13 deals with transitional arrangements relating to the calculation of tariff data for insurers for the fee year 2017/18 as a result of the implementation of the Solvency II Directive from 1 January 2016.

FEES 13.2

Calculation of tariff bases for fee year 2017/18

FEES 13.2.1

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Subject to FEES TP 13.2.2R the following will apply to the calculation of tariff bases for firms and VJ participants caught by FEES TP 13.1.1R(1) for the fee year 2017/18:

(1)

Subject to FEES TP 13.2.1R(2) and FEES TP 13.2.1R(3) fees (including the general levy and the levy for the Voluntary Jurisdiction specified in FEES 5 Annex 2R) will be calculated using the tariff base data reported for the financial year ended in the calendar year ending 2015.

(2)

If a firm or VJ participant has acquired or disposed of insurance business by way of an insurance business transfer scheme under Part VII of the Act or Part VIII of the Friendly Societies Act 1992, during the period specified in FEES TP 13.2.3R, it must on or before 28 February 2017:

(a)

notify the FCA (or the Financial Ombudsman Service in the case of a VJ participant) that such a transfer has taken place; and

(b)

provide such information as the FCA (or the Financial Ombudsman Service in the case of a VJ participant) may require to establish the extent to which the tariff base data, referred to in FEES TP 13.2.1R(1), has increased or decreased as a result of the transfer and the amended data provided will form the basis of the fees calculation (including the general levy and the levy for the Voluntary Jurisdiction specified in FEES 5 Annex 2R) for the fee year commencing on 1 April 2017.

(3)

A firm in run-off (or a VJ participant in equivalent circumstances) which commenced during the period specified in FEES TP 13.2.3R may on or before 28 February 2017 resubmit adjusted 2015 tariff base data.

[Note: Under FEES TP 13.2.1R(2) and (3) firms within activity groups A.3 and/or A.4 make resubmissions to the FCA in its capacity as collection agent for the PRA]

FEES 13.2.2

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This rule deals with the use of projected valuations in the calculation of fees for firms subject to FEES TP 13 where FEES 4.2.7R, FEES 4.2.7BR, FEES 5.8.1R, FEES 5.8.2R or FEES 5.8.3G apply in the fee-year 2017/18.

(1)

For periodic fees calculations under FEES 4.2.7R or FEES 4.2.7BR, projected valuations for a firm’s first year, as provided in the course of the firm’s application will be applied whether in its first fee year, second fee year or a subsequent fee year.

(2)

The general levy calculation based on projected valuations for a firm’s first year of business will be applied whether it is in its first or second financial year.

(3)

The levy calculation for the Voluntary Jurisdiction specified in FEES 5 Annex 2R based on projected valuations for a VJ participant’s first year of business will be applied whether it is in its first or second financial year.

FEES 13.2.3

R

The period referred to in FEES TP 13.2.1R(2) and FEES TP 13.2.1R(3) is the period:

(1)

from the firms’ financial year ended in the calendar year ending 2015; to

(2)

the end of the calendar year ending 2016.

FEES 13.2.4

R

To assist with the formulation of fees and general levy policy for the fee year and financial year commencing on 1 April 2018 and subsequent fee years and financial years, firms are required to comply with the requests of the FCA for tariff data in respect of the firm’s financial years:

(1)

ended in the calendar year ending 31 December 2016; and

(2)

ended in the calendar year ending 31 December 2017.