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Status: You are viewing the version of the handbook as on 2005-06-30.

SUP 20.2 Obligation to Pay Periodic Fees

Amount payable

SUP 20.2.1R

A firm must pay to the FSA an amount equal to:

  1. (1)

    each periodic fee applicable to it; less

  2. (2)

    any deductions from the periodic fee specified in part 2 of SUP 20 Annex 2.1

SUP 20.2.2R

A firm must not make any other deduction from the amount required under SUP 20.2.1 R.

SUP 20.2.3G

A firm will be required to pay a periodic fee for every year during which it has a permission subject to any reductions or exemptions applicable under this chapter. The FSA will issue invoices to firms and expects to do so at least 30 days before the dates on which payments will fall due under SUP 20.2.7 R.1

Calculation of periodic fee

SUP 20.2.4R

The periodic fee referred to in SUP 20.2.1 R is (except in relation to the Society) calculated as follows:

  1. (1)

    identify each of the tariffs set out in part 1 of SUP 20 Annex 2 which apply to the business of the firm for the period specified in that annex;

  2. (2)

    for each of those tariffs, calculate the sum payable in relation to the business of the firm for that period;

  3. (3)

    add together the amounts calculated under (2);

  4. (4)

    apply any applicable payment charge or discount specified in SUP 20.2.7A R, provided that:

    1. (a)

      for payment by direct debit, successful collection of the amount due is made at the first attempt by the FSA; or

    2. (b)

      for payment by credit transfer, the amount due is received by the FSA on or before the due date.21

SUP 20.2.5G

For a firm which becomes authorised or extends its permission during the course of a financial year this periodic fee is modified (seeSUP 20.4 (Modifications)). The periodic fee is also modified for incoming EEA firms and for incoming Treaty firms seeSUP 20.4.7 G).

Amount payable by the Society of Lloyd's

SUP 20.2.6R

The periodic fee referred to in SUP 20.2.1 R in relation to the Society is specified against its name in SUP 20 Annex 2.1

Time and method for payment

SUP 20.2.7R
  1. (1)

    The firm must pay the total amount due under SUP 20.2.1 R, using one of the payment methods specified in SUP 20.2.7A R.

  2. (2)

    If the firm's periodic fee for the previous financial year was at least £50,000, the firm must pay:

    1. (a)

      an amount equal to 50% of the periodic fee payable for the previous year, by 30 April in the financial year to which the sum due under SUP 20.2.1 R relates; and

    2. (b)

      the balance of the periodic fee due for the current financial year by 1 September in the financial year to which that sum relates.

  3. (3)

    If the firm's periodic fee for the previous financial year was less than ?50,000, the firm must pay the periodic fee due in full by 1 July in the financial year to which that sum relates.

  4. (4)

    If a firm has applied to cancel its Part IV permission in the way set out in 6.4.5 (Cancellation of permission), then (2) and (3) do not apply but it must pay the total amount due when the application is made.

  5. (5)

    If the FSA has exercised its own-initiative powers to cancel a firm'sPart IV permission in the way set out in ENF 5 (Cancellation of Part IV permission on the FSA's own initiative), then (2) and (3) do not apply but the firm must pay the total amount due immediately before the cancellation becomes effective.21

SUP 20.2.7AR

Table: specified payment methods

This table belongs to SUP 20.2.4 R and SUP 20.2.7 R

Payment method

Additional amount or discount applicable

Direct debit

Discount of £20

Credit transfer (BACS/CHAPS)

Discount of £10

Cheque

None

Switch

None

Credit card (Visa/Mastercard only)

Additional 2% of sum paid 1

Groups of firms

SUP 20.2.8R

A firm which is a member of a group may pay all of the amounts due from other firms in the same group under SUP 20.2.1 R, if:

  1. (1)

    it notifies the FSA in writing the name of each other firm within the group for which it will pay; and

  2. (2)

    it pays the fees, in accordance with this chapter, as a single amount as if that were the amount required under SUP 20.2.1 R from the firm.

SUP 20.2.9G

A notification under SUP 20.2.8 R (1) should be made in accordance with SUP 15.7 (Form and method of notification).

SUP 20.2.10G

If the payment made does not satisfy in full the periodic fees payable by all of the members of the group notified to the FSA under SUP 20.2.8 R, the FSA will apply the sum received among the firms which have been identified in the notification given under SUP 20.2.8 R (1) in proportion to the amounts due from them. Each firm will remain responsible for the payment of the outstanding balance attributable to it.

SUP 20.2.11G

If a firm pays its fees through an agent outside the scope of SUP 20.2.8 R, it should ensure that the FSA is informed that the sum being paid is for that firm's periodic fees.