Related provisions for FEES 6.1.3

1 - 12 of 12 items.

Search Term(s)

Filter by Modules

Filter by Documents

Filter by Keywords

Effective Period

Similar To

To access the FCA Handbook Archive choose a date between 1 January 2001 and 31 December 2004 (From field only).

FEES 6.3.1RRP
The FSCS may at any time impose a management expenses levy or a compensation costs levy, provided that the FSCS has reasonable grounds for believing that the funds available to it to meet relevant expenses are, or will be, insufficient, taking into account:(1) in the case of a management expenses levy, the level of the FSCS's anticipatedexpenditure in respect of those expenses in the financial year of the compensation scheme in relation to which the levy is imposed; and(2) in
FEES 6.3.3GRP
The FSCS may impose one or more levies in a financial year to meet either its management expenses or its compensation costs. The FSCS may also impose interim levies, as part of its overall levy commitment. This flexibility allows the FSCS to phase its financing over the course of a financial year and thus avoid collecting levies from firms before the money is actually needed. The FSCS has committed itself in the Memorandum of Understanding with the FSA (the text of which can
FEES 6.3.4GRP
The discretion over levying in COMP also gives the FSCS, if it thinks this appropriate, the ability to use third parties as its agents in raising and collecting the levies.
FEES 6.3.5RRP
The maximum amount of compensation costs for which the FSCS can levy each sub-class and class in any one financial year of the compensation scheme is limited to the amounts set out in the table in FEES 6 Annex 2 R.22
FEES 6.3.10RRP
The FSCS may include in a compensation costs levy the costs of compensation paid by the FSCS in error, provided that the payment was made in good faith.
FEES 6.3.11RRP
The FSCS must hold any amount collected from a specific costs levy or compensation costs levy to the credit of the classes2 and relevant sub-classes,2 in accordance with the allocation established under FEES 6.4.6 R and FEES 6.5.2 R.22
FEES 6.3.12RRP
Any funds received by the FSCS by way of levy or otherwise for the purposes of the compensation scheme are to be managed as the FSCS considers appropriate, and in doing this the FSCS must act prudently.
FEES 6.3.17RRP
(1) The FSCS may use any money held to the credit of one class2(the creditor class)2 to pay compensation costsin respect of or allocated to 2another class2(the debtor class)2 if the FSCS has reasonable grounds to believe that this would be more economical than borrowing funds from a third party or raising a levy.2222(2) Where the FSCS acts in accordance with (1), it must ensure that:(a) the creditor class2 is reimbursed by the debtor class2 as soon as possible;22(b) the debtor
FEES 6.3.18GRP
2FEES 6.3.17 R deals with how FSCS may use money available to it and does not affect the rules on allocation in FEES 6.5.2 R. Therefore FEES 6.3.17R(2) (a), (b) and (c) do not apply where the costs otherwise attributable to one debtor class are allocated to the creditor class in accordance with the rules on allocation in FEES 6.5.2 R.
FEES 6.3.20RRP
(1) This rule applies where the FSCS makes recoveries in relation to protected claims where related compensation costs would have been met by a sub-class (sub-class A) had the levy limit for sub-class A not been reached and have therefore been met by another sub-class or sub-classes.2(2) This rule applies even though the recovery is made in a subsequent financial year.2(3) Recoveries referred to in (1) must be applied in the following order of priority:(a) (if the compensation
FEES 6.3.21RRP
If the FSCS has more funds to the credit of a sub-class2 than the FSCS believes will be required to meet levies on that sub-class2 for the next 12 months, it may refund the surplus to members or former members of the sub-class2 on any reasonable basis.222
FEES 6.3.22RRP
The FSCS may adjust the calculation of a participant firm's share of any levy to take proper account of:(1) any excess, not already taken into account, between previous levies of that type imposed in relation to previous periods and the relevant costs actually incurred in that period; or(2) participant firms that are exempt from the levy under FEES 6.2; or(3) amounts that the FSCS has not been able to recover from participant firms as a result of FEES 6.3.5 R ; or2(4) amounts
FEES 6.3.22ARRP
4The FSCS may not adjust the calculation of a participant firm's share of any levy under FEES 6.3.22 R on the grounds that it would be inequitable for that firm to pay that share or part of it or on the grounds that it would be inequitable for the FSCS to retain that share or part of it.
FEES 6.3.22CRRP
(1) 4This rule applies to the calculation of the levies of a firm (A) if:(a) either:(i) A acquires all or a part of the business of another firm (B), whether by merger, acquisition of goodwill or otherwise; or(ii) A became authorised as a result of B's simple change of legal status (as defined in FEES 3 Annex 1 Part 6); (b) B is no longer liable to pay a levy; and(c) that acquisition or change takes place after the date to which, or as of which, A's most recent statement of business
FEES 6.3.23RRP
If a participant firm's share of a levy or an additional administrative fee under FEES 6.7.4 R would be so small that, in the opinion of the FSCS, the costs of collection would be disproportionate to the amount payable, the FSCS may treat the participant firm as if its share of the levy or additional administrative fee amounted to zero.
FEES 6.1.4GRP
Section 213(3)(b) of the Act requires the FSA to make rules to enable the FSCS to impose levies on authorised persons in order to meet its expenses. These expenses include in particular expenses incurred, or expected to be incurred, in paying compensation, borrowing or insuring risks.
FEES 6.1.5GRP
The FSCS may impose twotypes of levy: a management expenses levy, and a compensation costs levy. The FSCS has discretion as to the timing of the levies imposed.2
FEES 6.1.6GRP
In calculating a compensation costs levy, the FSCS may include anticipated compensation costs for defaults expected to be determined in the 12-month period following the date of the levy. The total of all management expenses levies attributable to a financial year will be restricted tothe amount set out on an annual basis in FEES 6 Annex 1 R.
FEES 6.1.8GRP
Within each class2 there are one or moresub-classes.2 These relate to different types of activity carried on by participant firms within each class.2 Within a class,2 individual participant firms are allocated for funding purposes to one or more sub-classes,2 depending on their business activities. This, together with the provisions on the allocation of levies to sub-classes up to their levy limits,2 meetsa requirement of section 213(5) of the Act that the FSA, in making rules
FEES 6.1.9GRP
Section 223 of the Act (Management expenses) prevents the FSCS from recovering, through a levy, any management expenses attributable to a particular period in excess of the limit set in COMP as applicable to that period. 'Management expenses' are defined in section 223(3) to mean expenses incurred or expected to be incurred by the FSCS in connection with its functions under the Act, except:(1) expenses incurred in paying compensation; and(2) expenses incurred as a result of the
FEES 6.1.10GRP
A management expenses levy under COMP may consist of two 2elements. The first is a base costs levy, for the base costs of running the compensation scheme in a financial year, that is, costs which are not dependent upon the level of activity of the compensation scheme and which therefore are not referable to any specific default. Included in this category are items such as the salary of the members of the board of the FSCS, the costs of the premises which the FSCS occupies, and
FEES 6.1.14GRP
The compensation costs levy is made up of the compensation costs which the FSCS has incurred and has not yet recovered from participant firms (less any recoveries it has made using the rights that have been assigned to it), together with those compensation costs it expects to incur (including in respect of defaults yet to be declared) over the 12 months following the date of the levy.
FEES 6.1.17GRP
Incoming EEA firms which obtain cover or 'top up' under the provisions of COMP 14 are firms whose Home State scheme provides no or limited compensation cover in the event that they are determined to be in default. Under FEES 6.6, the FSCS is required to consider whether incoming EEA firm's should receive a discount on the amount that they would otherwise pay as their share of the levy, to take account of the availability of their Home State cover. The amount of any discount is
FEES 6.4.1RRP
A participant firm must pay to the FSCS a share of each management expenses levy.
FEES 6.4.2RRP
The total of all management expenses levies attributable to a particular period of the compensation scheme may not exceed the limit applicable to that period set out in FEES 6 Annex 1 R.
FEES 6.4.4RRP
The FSCS must ensure that each participant firm's share of a management expenses levy separately identifies the firm's share of the base costs levy and1specific costs levy .11
FEES 6.4.5RRP
Unless FEES 6.3.22 R applies, the FSCS must calculate a participant firm's share of a base costs levy by:(1) identifying the base costs which the FSCS has incurred, or expects to incur, in the relevant financial year of the compensation scheme, but has not yet levied;(2) calculating the amount of the participant firm's regulatory costs as a proportion of the total regulatory costs relating to all participant firms for the relevant financial year; and(3) applying the proportion
FEES 6.4.8RRP
A firm which becomes a participant firm part way through a financial year of the compensation scheme will not be liable to pay a share of a specific costs levy made in that year.
FEES 6.4.10GRP
Since a firm that becomes a participant firm in the course of a financial year of the compensation scheme will already be obtaining a discount in relation to the base costs levy through the modified fee provisions of FEES 4.2.6 R, no rule is necessary in COMP for discounts on the base costs levy.11
FEES 6.7.1RRP
A participant firm must pay its share of any levy made by the FSCS:(1) in one payment; or(2) where the FSCS agrees, quarterly, at the beginning of each quarter, by direct debit agreement.
FEES 6.7.4RRP
If a participant firm does not pay its share of a levy subject to a direct debit agreement as required by FEES 6.7.1 R (2), the entire amount of the levy becomes due and payable to the FSCS, and additional administrative fees are payable at the rate set out in FEES 2.2.1 R.
FEES 6.7.6RRP
If a firm ceases to be a participant firm part way through a financial year of the compensation scheme:(1) it will remain liable for any unpaid levies which the FSCS has already made on the firm;1(2) the FSCS may make a levy upon it (which may be before or after the firmhas ceased to be a participant firm, but must be before it ceases to be an authorised person) for the costs which it would have been liable to pay had the FSCS made a levy on all participant firms at the time
FEES 6.5.2AGRP
4The use made by FSCS of borrowing facilities to provide liquidity until the next levy does not affect the allocation of costs incurred or anticipated.
FEES 6.5.5RRP
4(1) A participant firm must pay to the FSCS a share of each compensation costs levy unless either the firm is exempt under FEES 6.2 (Exemption) or the FSCS has chosen to exercise its discretion under FEES 6.3.23 R in respect of that firm.4(2) If a levy relates solely to costs allocated in excess of a particular levy limit (1) does not apply to a participant firm member of the sub-class or class whose levy limit has been exceeded.4
FEES 6.5.9RRP
A firm which becomes a participant firm part way through a financial year of the compensation scheme will not be liable to pay a share of a compensation costs levy made in that year.4
FEES 2.2.1RRP
If a person does not pay the total amount of a periodic fee (including fees relating to transaction reports43 to the FSA using the FSA's Transaction Reporting System (see SUP 17))1, FOS levy or case fee, or share of the FSCS levy, before2 the end of the2 date on which it is due, under the relevant provision in FEES 4, 5, or 6, that person must pay an additional amount as follows: 3422(1) if the fee was not paid in full before the end of the due date, an administrative fee of
FEES 2.2.2GRP
The FSA, (for periodic fees, FOS and FSCS levies), FOS Ltd (for FOS case fees), expect to issue invoices at least 30 days before the date on which the relevant amounts fall due. FOS case fees are invoiced on a monthly basis. Accordingly it will generally be the case that a person will have at least 30 days from the issue of the invoice before an administrative fee becomes payable.2
FEES 2.2.3GRP
Paragraph 17(4) of Schedule 1 and section 99(5) to the Act permit the FSA to recover fees ( and, where relevant, FOS levies), and section 213(6) permits the FSCS to recover shares of the FSCS levy payable, as a debt owed to the FSA and FSCS respectively, and the FSA and FSCS, as relevant, will consider taking action for recovery (including interest) through the civil courts. Also, the FOS Ltd (in respect of case fees) may take steps to recover any money owed to it (including
FEES 2.2.4GRP
In addition, the FSA may be entitled to take regulatory action in relation to the non-payment of fees and FOS levies. FSA may also take regulatory action in relation to the non-payment of FOS case fees or share of the FSCS levy, after reference of the matter to FSA by FOS Ltd or FSCSrespectively. What action (if any) that is taken by the FSA will be decided upon in the light of the particular circumstances of the case.
FEES 2.3.1RRP
If it appears to the FSA, the FSCS (in relation to any FSCS levy only) 2 or FOS Ltd (in relation to any FOS case fee only), that in the exceptional circumstances of a particular case, the payment of any fee, FSCS levy2 or FOS levy would be inequitable, the FSA, the FSCS2 or FOS Ltd, as relevant, may (unless FEES 2.3.2B R applies)1 reduce or remit all or part of the fee or levy in question which would otherwise be payable.
FEES 2.3.2RRP
If it appears to the FSA, the FSCS (in relation to any FSCS levy only)2 or FOS Ltd (in relation to any FOS case fee only), that in the exceptional circumstances of a particular case to which FEES 2.3.1R does not apply, the retention by the FSA, the FSCS,2 or FOS Ltd, as relevant, of a fee, FSCS levy2 or FOS levy which has been paid would be inequitable, the FSA, the FSCS2 or FOS Ltd, may (unless FEES 2.3.2B R applies)1 refund all or part of that fee or levy.
FEES 2.3.2BRRP
1The FSA or the FSCS2may not consider a claim under FEES 2.3.1 R and/or FEES 2.3.2 R to reduce, remit or refund any overpaid amounts paid by a fee or levy2 payer in respect of a particular period, due to a mistake of fact or law by the fee or levy2 payer, if the claim is made by the fee or levy2 payer more than 2 years after the beginning of the period to which the overpayment relates.
FEES 2.1.1RRP
118This118 chapter applies to every person who is required to pay a fee or share of a levy to the FSA, FOS Ltd or FSCS, as the case may be, by a provision of the Handbook.
FEES 2.1.4GRP
The purpose of this chapter is to set out the general provisions applicable to those who are required to pay fees or levies to FSA, case fees to FOS Ltd or a share of the FSCS levy.
FEES 2.1.5GRP
Paragraph 17 of Schedule 1 and section 99 to the Act enable the FSA to charge fees to cover its costs and expenses in carrying out its functions. The corresponding provisions for the FSCS levy and FOS levies and case fees are set out in FEES 6.1, and FEES 5.2 respectively.
FEES 2.1.7GRP
The key components of the FSA fee mechanism (excluding the FSCSlevy and FOS levy and case fees, which are dealt with in FEES 5 and FEES 6) are:(1) a funding requirement derived from:(a) the FSA's financial management and reporting framework;(b) the FSA's budget; and(c) adjustments for audited variances between budgeted and actual expenditure in the previous accounting year, and reserves movements (in accordance with the FSA's reserves policy);(2) mechanisms for applying penalties
FEES 1.1.1GRP
142FEESapplies to all persons required to pay a fee or levy under a provision of the Handbook. The purpose of this chapter is to set out to whom the rules and guidance in FEES apply. FEES 2 (General Provisions) contains general provisions which may apply to any type of fee payer. FEES 3 (Application, Notification and Vetting Fees) covers one-off fees payable on a particular event for example various application fees (including those in relation to authorisation, variation of Part
FEES 6.6.1RRP
If an incoming EEA firm, which is a BCD credit institution, an IMD insurance intermediary or MiFID investment firm1, is a participant firm, the FSCS must give the firm such discount (if any) as is appropriate on the share of any levy it would otherwise be required to pay, taking account of the nature of the levy and the extent of the compensation coverage provided by the firm's Home State scheme.1