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Status: You are viewing the version of the handbook as on 2005-12-31.

SUP 20.4 Modifications

Modification for firms with new or extended permissions

SUP 20.4.1G

A firm which becomes authorised during the course of a financial year will be required to pay a proportion of the periodic fee which reflects the proportion of the year for which it will have a permission.

SUP 20.4.2G

Similarly a firm which extends its permission so that its business then falls within additional fee blocks will be required to pay a further periodic fee under this section for those additional fee blocks, but discounted to reflect the proportion of the year for which the firm has the extended permission.

SUP 20.4.3G

These provisions apply (with some changes) to incoming EEA firms and incoming Treaty firms - see SUP 20.4.10 R.

SUP 20.4.4R

A firm which becomes authorised, or whose permission is extended, during the course of the financial year must pay a fee which is calculated by:

  1. (1)

    identifying each of the tariffs set out in Part 1 of SUP 20 Annex 2 for the relevant financial year that apply to the firm only after the permission is received or extended, but ignoring:

    1. (a)

      the A.13 activity group if, before the variation, the A.12 activity group applied to the firm's business; or

    2. (b)

      the A.12 activity group if, before the variation, the A.13 activity group applied to the firm's business;

  2. (2)

    calculating the amount for each of those tariffs which is the higher of:

    1. (a)

      the minimum fee specified for the tariff; and

    2. (b)

      the result of applying the tariff to the projected valuation, for its first year (as provided to the FSA in the course of the firm's application), of the business to which the tariff relates (or, where relevant, the number of approved persons immediately after the permission is given);

  3. (3)

    adding together the amounts calculated under (2); and

  4. (4)

    modifying the result as indicated by SUP 20.4.6 R.32

SUP 20.4.5R

A firm must pay any sum required under within 30 days of the receipt or extension of the permission, or if later the due date specified under SUP 20.2.7 R.

SUP 20.4.6R

Table: Modification for additional fee

This table belongs to SUP 20.4.4 R

Quarter in which the permission is received or extended

Proportion payable

1 April to 30 June inclusive

100%

1 July to 30 September inclusive

75%

1 October to 31 December inclusive

50%

1 January to 31 March inclusive

25%

Modifications for incoming EEA firms and incoming Treaty firms

SUP 20.4.7G

The FSA recognises that its responsibilities in respect of an incoming EEA firm or of an incoming Treaty firm are reduced compared with a firm which is incorporated in the United Kingdom. Accordingly the periodic fees which would otherwise be applicable to incoming EEA firms and incoming Treaty firms are reduced.

SUP 20.4.8R

For an incoming EEA firm or an incoming Treaty firm, the calculation required by SUP 20.2.4 R is modified as follows:

  1. (1)

    the tariffs set out in Part 1 of SUP 20 Annex 2 are applied only to the regulated activities of the firm which are carried on in the United Kingdom; and

  2. (2)

    those tariffs are modified in accordance with Part 3 of SUP 20 Annex 2.2

SUP 20.4.9R

For an incoming EEA firm or an incoming Treaty firm, the information required under SUP 20.3 (Information on which fees calculated) is limited to the regulated activities of the firm which are carried on in the United Kingdom.

SUP 20.4.10R

In relation to an incoming EEA firm or an incoming Treaty firm the modification provisions of SUP 20.4.1 G to SUP 20.4.6 R inclusive apply only in relation to the relevant regulated activity of the firm which are passported activities or Treaty activities and which are carried on in the United Kingdom.

Firms cancelling or reducing the scope of their permission

SUP 20.4.11G

The FSA will not refund periodic fees if, after the start of the period to which they relate, a firm cancels its permission, or reduces its permission so that it then falls out of fee-block previously applied to it (but see GEN 3 (Relieving Provisions)).1

SUP 20.4.12R
  1. (1)

    If:

    1. (a)

      a firm makes an application to vary its permission (by reducing its scope), or cancel it, in the way set out in SUP 20.4.4 R (3) (Variation of permission) and 6.4.5 (Cancellation of permission); and

    2. (b)

      the firm makes the application referred to in (a) before the start of the period to which the fee relates;

    SUP 20.2.1 R applies to the firm as if the relevant variation or cancellation of the firm's permission took effect immediately before the start of the period to which the fee relates.

  2. (2)

    But (1) does not apply if, due to the continuing nature of the business, the variation or cancellation is not to take effect within three months of the start of the period to which the fee relates.1

SUP 20.4.12AG

Where a firm has applied to cancel its Part IV permission, or the FSA has exercised its own-initiative powers to cancel a firm's Part IV permission, the due dates for payment of periodic fees are modified by SUP 20.2.7 R (4) and SUP 20.2.7 R (5) respectively.3

Firms acquiring businesses from other firms

SUP 20.4.13R
  1. (1)

    This rule applies if a firm (A) acquires all or a part of the business of another firm (B), whether by merger, acquisition of goodwill or otherwise, in relation to which a periodic fee would have been payable by B.

  2. (2)

    If, before the date on which A acquires the business, B had paid any periodic fee payable for the period in which the acquisition occurred, SUP 20.4.1 G to SUP 20.4.6 R do not apply to A in relation to the business acquired from B.

  3. (3)

    If the acquisition occurs after the valuation date applicable to the business which A acquired from B, for the period following that in which the acquisition occurred, SUP 20.2.1 R applies to A, in relation to that following period, as if the acquisition had occurred immediately before the relevant valuation date.1

Minimum fee discount4

SUP 20.4.14R
  1. (1)

    4A firm (other than a firm in (2) or a credit union) in more than one fee block must pay at least 50% of the total minimum fee payable in any fee block in which it is a minimum fee payer.

  2. (2)

    A firm (other than a credit union) liable to pay only minimum fees in each fee block it is in must pay 100% of the highest total minimum fee payable within any one fee block and must pay at least 50% of the total minimum fee payable in any other fee blocks in which it is a minimum fee payer.

  3. (3)

    A credit union in more than one fee block must pay at least 50% of the total minimum fee payable in any fee block, other than fee block A1, in which they are a minimum fee payer.