A.1
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MODIFIED
ELIGIBLE LIABILITIES
For
banks:
Part
1:
Liabilities
In sterling:
£2 + £3 + £4 + £5A + £5B + £6B
+ £6C + £6D + £6E + £6F + £6G + £6H +
£6J + £7B + £7C + £7D + £7E + £7F + £7G
+ £7H + £7J + £8 + £10 + 60% of £11A + £44
plus
In foreign
currency, one-third of:
E2 + E3 + E4 + E5A + E5B + E6B + E6C + E6D + E6E + E6F + E6G +
E6H + E6J + E7B + E7C + E7D + E7E + E7F + E7G + E7H + E7J + E8 + E10 + 60%
of E11A + E44 + C2 + C3 + C4 + C5A + C5B + C6B + C6C + C6D + C6E + C6F + C6G
+ C6H + C6J + C7B + C7C + C7D + C7E + C7F + C7G + C7H + C7J + C8 + C10 + 60%
of C11A: less
Assets
In sterling:
£21B + 60% of £22A + £23D + £23E + £23F
+ £30A + £30B + £31A + £31B + £32AA
plus
In foreign currency,
one-third of:
E21B
+ 60% of E22A + E23D + E23E + E23F + E30A + E30B + E31A + E31B + E32AA + C21B
+ 60% of C22A + C23D + C23E + C23F + C30A + C30B + C31A + C31B + C32AA
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Part
2: Non-resident office offset
The fee base is adjusted by deducting from the amount calculated
in accordance with part 1 above, the Non-Resident Office Offset amount obtained
by subtracting item 45D from item 45BA in the Form BT. The Non-Resident Office
Offset amount, if it would otherwise have been a negative number, is zero.
Notes:
(1) All references
in the above formula are to entries on Form BT (that is, the Balance Sheet
Form completed to provide information required following the Banking Statistics
Review 1997 and returned by banks to
the Bank of England as required by the Bank of England Act 1998).
(2) 'E' refers to
assets and liabilities denominated in euro (as referred to in column 2 of
Form BT) and 'C' refers to assets and liabilities denominated in currencies
other than sterling and euro (as referred to in column 3 of Form BT). In accordance
with Form BT, assets and liabilities in currencies other than sterling are
to be recorded in sterling.
(3) The figures reported on the Form BT relate to business conducted
out of offices in the United
Kingdom.
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For
e-money issuers:
Outstanding
balance of e-money liabilities
For
credit unions:
Deposits with
the credit union (share
capital)
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LESS
the credit union's bank deposits
(investments + cash at bank)
Note:
Only United Kingdom business is relevant for
calculating credit unions' MELs.
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For
building societies:
• deposit liabilities (including
debt securities up to five years original maturity)
(that is, the amounts in sterling (in
column 1) and one-third of foreign currency referenced amounts (in columns
2 and 3) for items B1.1+B1.2+B2.0a+B2.0b+B2.10+B2.13+B2.14+B2.15+B2.16)
LESS
amounts in respect of:
•sterling repo liabilities with the
Bank of England
(that is, ONLY the amounts in sterling (in column 5) for item
B2.5a)
•balances held with the Bank of England (excluding cash
ratio deposits)
(that
is, the amounts in sterling (in column 1) and one-third of foreign currency
referenced amounts (in columns 2 and 3) for item B6.2a, less the amounts in
sterling (in column 1) and one-third of foreign currency referenced amounts
(in columns 2 and 3) for item OW1.1)
• market loans to banks, building societies (balances
with and loans to, plus CDs, Commercial paper)
(that is, the amounts in sterling (in
column 1) and one-third of foreign currency referenced amounts (in columns
2 and 3) for items B6.3.a+B6.4.a+B6.4b+B6.5a+B6.5b+B6.12a)
•investments
with banks and building societies (bonds, notes and other debt
instruments up to five years original maturity) (that is, the amounts in sterling
(in column 1) and one-third of foreign currency referenced amounts (in columns
2 and 3) for items B6.6a1+B6.6a2+B6.10a1+B6.10a2)
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Note :
All references
in the definition for building society MELs are to entries in the MFS1 which
is submitted monthly by
all building societies to
the FSA.
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A.2
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NUMBER
OF MORTGAGES ENTERED INTO AND ADMINISTERED
8
The number of new mortgage contracts
entered into;8
AND
8
The number of mortgage
contracts being administered, multiplied by 0.5.8
Notes:
8
(1) For 2004/05 and
2005/06 firms have
supplied this data on their 'HSF1' or 'variation of permission' application
form.8
(2) In this
context a 'mortgage' means a loan secured by a first charge over residential
property in the United
Kingdom. For the measure of the number of contracts being administered,
each first charge counts as one contract, irrespective of the number of loans
involved.8
(3) Mortgages
administered include those that the firm administers
on behalf of other firms.8
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8
A.3
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GROSS
PREMIUM INCOME AND GROSS TECHNICAL LIABILITIES
For
insurers:The amount of premium receivable which
must be included in the documents required to be deposited under IPRU(INS) 9.6 in relation to the financial
year to which the documents relate but disregarding for this purpose such
amounts as are not included in the document by reason of a waiver or
an order under section 68 of the Insurance Companies Act 1982 carried forward
as an amendment to IPRU(INS) under
transitional provisions relating to written concessions in SUP;
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less,premiums relating to pension fund management business
where the firm owns
the investments and
there is no transfer of risk;
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AND the amount of
gross technical liabilities (IPRU(INS) Appendix
9.1 - Form 15, line 19) which must be included in the documents required to
be deposited under IPRU(INS) 9.6R
in relation to the financial year to which the documents relate but disregarding
for this purpose such amounts as are not included in the document by reason
of a waiver or an order under
section 68 of the Insurance Companies Act 1982 carried forward as an amendment
to IPRU(INS) under transitional
provisions relating to written concessions in SUP;
less,
the amount of
gross technical liabilities relating to pension
fund management business where the firm owns the investments and there is no transfer of risk.
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Notes :
(1) in the case
of either:
(a)
a pure reinsurer carrying
on general insurance business through
a branch in
the United Kingdom;
or
(b)
an insurer whose
head office is not in an EEA
State carrying on general
insurance business through a branch in the United Kingdom; or
(c) a non-EEA insurer other than a Swiss general insurer which
has permission to
carry on direct insurance business and which has made a deposit in an EEA state other than the United Kingdom in accordance
with IPRU(INS) 8.1(2),
the amount only includes premiums received and
gross technical liabilities held in respect of its United Kingdom business;
(2) for a Swiss general insurance company, premiums
and gross technical liabilities include those relevant to the operations of
the company's United Kingdombranch; and
(3) a firm need not include
premiums and gross technical liabilities relating to pure protection contracts which it reports,
and pays a fee on, in the A.4 activity group.
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For
friendly societies:
Either:
(a) the value
of "contributions" as income under Schedule 7: Part I item 1(a) to the Friendly
Societies (Accounts and Related Provisions) Regulations 1994 (SI 1994/1983)
(the regulations) for a non-directive
friendly society, included within the income and expenditure
account; or
(b)
the value of "gross premiums written" under Schedule 1: Part I items I.1(a)
and II.1.(a) of the regulations for a directive
friendly society included within the income and expenditure
account.
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Note :
In both (a)
and (b) above only premium receivable
in respect of United Kingdom business
are relevant.
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A.4
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ADJUSTED
GROSS PREMIUM INCOME AND MATHEMATICAL RESERVES
Amount of new regular premium business (yearly premiums including reassurances ceded but
excluding cancellations and reassurances accepted), times ten;
Plus
amounts of new
single premium business
(total including reassurances ceded but excluding cancellations and reassurances
accepted). Group protection business (life and private health insurance) must
be included;
Less
premiums
relating to pension fund management business where the firm owns the investments and there is no transfer of risk.
For each of
the above, business transacted through independent practitioners will be divided
by two in calculating the adjusted gross premium income;
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AND
the amount of
mathematical reserves (IPRU(INS) Appendix
9.1R - Form 9, Line 23) which must be included in the documents required to
be deposited under IPRU(INS) 9.6R
in relation to the financial year to which the documents relate but disregarding
for this purpose such amounts as are not included in the document by reason
of a waiver or an order under
section 68 of the Insurance Companies Act 1982 carried forward as an amendment
to IPRU(INS) under transitional
provisions relating to written concessions in SUP;
Less
mathematical
reserves relating to pension
fund management business where the firm owns the investment and there is no transfer of risk.
Notes:
(1) Business
conducted through an associated company should be excluded in reporting the product provider's premium income. 9
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A.5
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ACTIVE
CAPACITY
The capacity of the syndicate(s) under
management in the year in question. This includes the capacity for syndicate(s) that are
not writing new business, but have not been closed off in the year in question.
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A.6
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Not applicable.
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A.7
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FUNDS
UNDER MANAGEMENT (FuM)
The total value, in pounds sterling, of all assets (see note (a)
below) in portfolios which the firm manages,
on a discretionary basis (see note (b) below), in accordance with its terms
of business, less:
(a) funds covered by the exclusion contained in article 38 (Attorneys)
of the Regulated Activities
Order;
(b) funds covered by the exclusion contained in article 66(3)
(Trustees, nominees and personal representatives) of the Regulated Activities Order;
(c) funds covered
by the exclusion contained in article 68(6) (Sale of goods or supply of services)
of the Regulated Activities
Order;
(d) funds covered by the exclusion contained in article 69(5)
(Groups and joint enterprises) of the Regulated
Activities Order; and
(e) the value of those parts of the managed portfolios in respect
of which the responsibility for the discretionary management has been formally
delegated to another firm (and
which firm will
include the value of the assets in question in its own FuM total); any such
deduction should identify the firm to
which management responsibility has been delegated.
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Notes
on FuM
(a) For the purposes of calculating the value of funds under management,
"assets" means all assets that consist of or include any investment which is a designated investment or those assets in
respect of which the arrangements for their management are such that the assets
may consist of or include such investments,
and either the assets have at any time since 29 April 1988 done so or the
arrangements have at any time (whether before or after that date) been held
out as arrangements under which the assets would do so.
(b) Assets managed on a non-discretionary
basis, being assets that the firm has
a contractual duty to keep under continuous review but in respect of which
prior specific consent of the client must
be obtained for proposed transactions, are NOT included as this activity is
covered in those charged to fees in activity groups A.12 and A.13.
(c) In respect
of collective investment
schemes, "assets" means the total value of the assets of the
scheme.
(d)
For an OPS firm,
the FuM should also be reduced by the value of the assets held as a result
of a decision taken in accordance with article 4(6) of The Financial Services
and Markets Act 2000 (Carrying on Regulated Activities by Way of Business)
Order 2001 (investments in collective
investment scheme or bodies
corporate which have as their primary purpose the acquisition,
directly, or indirectly, of "relevant investments", as defined in that article).
(e) Only assets
that are managed from an establishment maintained by the firm in the United Kingdom are relevant.
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A.8
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Not applicable.
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A.9
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GROSS
INCOME
For operators (including ACDs and managers of unit trusts):
gross income from the activity relating
to fee-block A.9 is defined as:
• the amount of the annual charge on funds invested in regulated
or unregulated collective
investment scheme received or receivable in the latest accounting
period (this is calculated as a % of funds invested, typically 1% p.a.);
PLUS
• the front-end
or exit charge levied on sales or redemptions of collective investment schemes (typically
4-5% of sales/redemptions) in that same accounting period;
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PLUS
• any additional
initial or management charges levied through a product wrapper such as a PEP or an ISA;
BUT EXCLUDING box
management profits.
For
depositaries
(including
trustees
of
collective investment schemes
and
ICVC
depositaries):
The amount of
the annual charge levied on funds in regulated
collective investment schemes for which they act as depositary (typically
a % of the total funds for which they act as depositary).
Note:
Only the gross
income corresponding to United
Kingdom business is relevant.
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A.10
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NUMBER
OF TRADERS
Any employee or
agent, who:
•
ordinarily acts within the United
Kingdom on behalf of an authorised
person liable to pay fees to the FSA in its fee-block A.10 (firms dealing
as principal); and who,
• as part of their duties in relation to those activities
of the authorised person ,
commits the firm in
market dealings or in transactions in securities or
in other specified investments in
the course of regulated
activities.
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A.11
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Not applicable.
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A.12
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APPROVED
PERSONS
The number of persons approved
to undertake one, or more, of the following customer functions:
CF21
Investment adviser function;
CF22
Investment adviser (trainee) function;
CF24
Pension transfer specialist function;
CF25
Adviser on syndicate participation at
Lloyd's function; or
CF26
Customer trading function.
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A.13
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APPROVED
PERSONS
The number of persons
approved to undertake one, or more, of the following customer functions:
CF21
Investment adviser function;
CF22
Investment adviser (trainee) function;
CF24
Pension transfer specialist function;
CF25
Adviser on syndicate participation at
Lloyd's function; or
CF26
Customer trading function.
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A.14
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APPROVED
PERSONS
The number of persons approved
to undertake the following controlled
function:
CF23
Corporate finance adviser function.
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A.15
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Not applicable.
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A.16
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Percentage share
of the amount paid towards PIA's 2001/2002
pensions review levy by fee-payers in fee-block A.16.
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A.17
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Not applicable.
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A.18
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ANNUAL
INCOME
8
(a) the net
amount retained by the firm of
all brokerages, fees, commissions and other related income (eg administration
charges, overriders, profit shares) due to the firm in respect of or in relation to mortgage mediation activity (or
activities which would have been mortgage
mediation activity if they had been carried out after 30 October
2004);8
Plus
8
(b) for any mortgage mediation activity carried
out by the firm for
which it receives payment from the lender on a basis other than that in (a),
the value of all new mortgage advances resulting from that activity multiplied
by 0.004;8
Plus
8
(c) if the firm is a mortgage lender, the
value of all new mortgage advances which are or would be regulated mortgage contracts if they had
been made after 30 October 2004 (other than those made as a result of mortgage mediation activity by
another firm),
multiplied by 0.004.8
Notes
on annual income:
8
(1) For 2004/05
and 2005/06 firms
have supplied this data on their 'HSF1' or 'variation of permission' application
form.8
(2) For the
purposes of calculating annual income, "net amount retained" means all the
commission, fees, etc. in respect of mortgage
mediation activity that the firm has not rebated to customers or passed
on to other firms (for
example, where there is a commission chain). Items such as general business
expenses (eg employees' salaries, overheads) should not be
deducted.8
(3) The firm must include in its
income calculation, on the same basis as above, earnings from those who will
become its appointed representatives immediately
after authorisation.8
(4) Reference to a
"firm" above
also includes reference to any person who
carried out activities which would be mortgage
mediation activity if they had been carried out after 30 October
2004.8
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8
A.19
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ANNUAL
INCOME
8
(a) the net
amount retained by the firm of
all brokerages, fees, commissions and other related income (eg administration
charges, overriders, profit shares) due to the firm in respect of or in relation to insurance mediation activity (or
activities which would have been insurance
mediation activity if they had been carried out after 13 January
2005) in relation to general
insurance contracts or pure
protection contracts;8
Plus
8
(b) in relation to
the activities set out in (a), for any insurance
mediation activity carried out by the firm for which it receives payment from the insurer on a basis other
than that in (a), the amount of premiums
receivable on the contracts
of insurance resulting from that activity multiplied by 0.07;8
Plus
8
(c) if the firm is an insurer, in relation to
the activities set out in (a), the amount of premiums receivable on its contracts of insurance multiplied by 0.07,
excluding those contracts
of insurance which:8
(i) result from insurance mediation activity by
another firm,
where a payment has been made by the insurer to
the firm under
(a); or8
(ii) the insurer reports in, and
pays a fee under, the A.4 activity group; or 8
(iii) are not general insurance contracts or pure protection contracts.8
Notes
on annual income:
8
(1) For 2004/05
and 2005/06 firms have
supplied this data on their 'HSF1' or 'variation of permission' application
form.8
(2) For the
purposes of calculating annual income, "net amount retained" means all the
commission, fees, etc. in respect of insurance
mediation activity that the firm has not rebated to customers or passed
on to other firms (for
example, where there is a commission chain). Items such as general business
expenses (eg employees' salaries, overheads) should not be
deducted.8
(3) The firm must include in its
income calculation, on the same basis as above, earnings from those who will
become its appointed representatives immediately
after authorisation.8
(4) Reference to a
"firm " above
also includes reference to any person who
carried out activities which would be insurance
mediation activity (in respect of general insurance contracts or pure protection contracts)
if they had been carried out after 13 January 2005.8
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8
B.
Market operators
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Not applicable.
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B.
Service companies
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Not applicable.
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