FEES Fees Manual

Part

FEES Fees Manual

Printed on: 09/12/2024

Rulebook at: 29/09/2008

Chapters

FEES 1 Fees Manual
FEES 2 General Provisions
FEES 3 Application, Notification and Vetting Fees
FEES 4 Periodic fees
FEES 5 Financial Ombudsman Service Funding
FEES 6 Financial Services Compensation Scheme Funding
Transitional Provisions and Schedules

FEES 1

Fees Manual

FEES 1.1

Application and Purpose

01/01/2006

FEES 1.1.1

FEES applies 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 IV permission, listing and the Basel Capital Accord) and fees relating to certain notifications and document vetting requests. FEES 4 (Periodic fees) covers all periodic fees and transaction reporting fees. FEES 5 (Financial Ombudsman Service Funding) relates to FOS levies and case fees and FEES 6 (Financial Services Compensation Scheme Funding) relates to the FSCS levy.

01/06/2008

Application

FEES 1.1.2

This manual applies in the following way:

(1) FEES 1, 2 and 3 apply to:

(a) every applicant for Part IV permission (including an incoming firm applying for top-up permission);
(b) every Treaty firm that wishes to exercise a Treaty right to qualify for authorisation under Schedule 4 to the Act (Treaty rights), except those providing cross border services only, in respect of regulated activities for which it does not have an EEA right;
(c) every applicant for a certificate under article 54 of the Regulated Activities Order;
(d) every applicant for an authorisation order for, or for recognition of, a collective investment scheme;
(e) every operator of a scheme making a notification under section 264 or section 270 of the Act;
(f) every person seeking to become a designated professional body;
(g) every applicant for recognition as a recognised body under Part XVIII of the Act (Recognised investment exchanges and clearing houses);
(h) every applicant for listing (under the listing rules);
(i) every applicant for approval as a sponsor (under the listing rules);
(j) every issuer (under the listing rules) of tranches from debt issuance programmes and securitised derivative tranches;
(k) every issuer (under the listing rules) involved in specific events or transactions during the year where documentation is subject to transaction vetting by the FSA;
(l) under the prospectus rules every issuer, offeror or person requesting approval or vetting of the documents arising in relation to specific events or transactions that it might be involved in during the year;
(m) every applicant to be listed as a designated investment exchange;
(n) every firm applying for variation of its Part IV permission; and
(o) every firm applying for or being concerned in an application for permission to use an advanced prudential calculation approach or guidance on the availability of such a permission (including any future proposed amendments to those approaches).

(2) FEES 1, 2 and 4 apply to:

(a) every firm (except an ICVC or UCITS qualifier);
(b) every manager of an authorised unit trust;
(c) every ACD of an ICVC;
(d) every person who, under the constitution or founding arrangements of a recognised scheme, is responsible for the management of the property held for or within the scheme;
(e) every designated professional body;
(f) every recognised body;
(g) under the Listing Rules every issuer of shares, depositary receipts and securitised derivatives;
(h) under the Listing Rules every sponsor; and
(i) under the Disclosure Rules and Transparency Rules every issuer of shares, depositary receipts and securitised derivatives.

(3) FEES 1, 2 and 5 apply to:

(a) every firm which is subject to the Compulsory Jurisdiction of the Financial Ombudsman Service; and
(b) every other person who is subject to the Compulsory Jurisdiction in relation to relevant complaints.

(4) FEES 1, 2 and 6 apply to:

(a) every participant firm;
(b) the FSCS; and
(c) the Society.

01/06/2008

FEES 1.1.3

The relevant provisions of FEES 5 and FEES 2 are applied to VJ participants by the standard terms (see DISP 4).

01/01/2006

Purpose

FEES 1.1.4

The purpose of this manual is to set out the fees applying to the persons set out in FEES 1.

01/01/2006

FEES 2

General Provisions

FEES 2.1

Introduction

01/01/2006

Application

FEES 2.1.1

This 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.

01/01/2006

FEES 2.1.2

FEES 2.2.1R does not apply in respect of any fee payable under FEES 3 (Application, notification and vetting fees).

01/01/2006

FEES 2.1.3

The provisions for late payments in FEES 2.2.1R do not apply to fees payable under FEES 3 as applications, notifications and requests for vetting are generally regarded as incomplete until the relevant fee is paid.

01/01/2006

Purpose

FEES 2.1.4

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.

01/01/2006

FEES 2.1.5

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.

01/01/2006

FEES 2.1.6

The FSA fees payable will vary from one financial year to another, and will reflect the FSA's funding requirement for that period and the other key components, as described in FEES 2.1.7G. Periodic fees, which will normally be payable on an annual basis, will provide the majority of the funding required to enable the FSA to undertake its statutory functions.

01/01/2006

FEES 2.1.7

The key components of the FSA fee mechanism (excluding the FSCS levy 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 received during previous financial years for the benefit of fee payers;
(3) fee-blocks, which are broad groupings of fee payers offering similar products and services and presenting broadly similar risks to the FSA's regulatory objectives;
(4) a costing system to allocate an appropriate part of the funding requirement to each fee-block; and
(5) tariff bases, which, when combined with fee tariffs, allow the calculation of fees.

01/01/2006

FEES 2.1.8

The amount payable by each fee payer will depend upon the category (or categories) of regulated activity or exemption, or other relevant activity applicable to that person (fee-blocks). It will, in most cases, also depend on the amount of the business that person conducts in each category (fee tariffs).

01/01/2006

FEES 2.1.9

By basing fee-blocks on categories of business, the FSA aims to minimise cross-sector subsidies. The membership of the fee-blocks is identified in the FEES provisions relating to the type of fees concerned.

01/01/2006

FEES 2.1.10

Paragraph 17(2) of Schedule 1 and section 99(3) to the Act prohibit the FSA from taking account of penalties received when setting its periodic and other fees. Accordingly periodic fees are specified without reference to the penalties received. However, the FSA normally expects to allocate those penalties to the fee-blocks within which the penalty payers fall, by way of a deduction from the periodic fee. Any deductions of this sort are set out in the relevant fees provisions or will be notified to the fee payer at the relevant time.

01/01/2006

FEES 2.2

Late Payments and Recovery of Unpaid Fees

01/01/2006

Late Payments

FEES 2.2.1

If a person does not pay the total amount of a periodic fee (including fees relating to transaction reports to the FSA using the FSA's Transaction Reporting System (see SUP 17)), FOS levy or case fee, or share of the FSCS levy, before the end of the 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:

(1) if the fee was not paid in full before the end of the due date, an administrative fee of £250; plus
(2) interest on any unpaid part of the fee at the rate of 5% per annum above the Bank of England's repo rate from time to time in force, accruing on a daily basis from the date on which the amount concerned became due.

01/11/2007

FEES 2.2.2

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.

01/04/2007

Recovery of Fees

FEES 2.2.3

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 interest).

01/01/2006

FEES 2.2.4

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 FSCS respectively. What action (if any) that is taken by the FSA will be decided upon in the light of the particular circumstances of the case.

01/01/2006

FEES 2.3

Relieving Provisions

01/01/2006

Remission of Fees

FEES 2.3.1

If it appears to the FSA, 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 or FOS levy would be inequitable, the FSA or FOS Ltd, as relevant, may (unless FEES 2.3.2B R applies) reduce or remit all or part of the fee or levy in question which would otherwise be payable.

06/10/2006

FEES 2.3.2

If it appears to the FSA, 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, or FOS Ltd, as relevant, of a fee or FOS levy which has been paid would be inequitable, the FSA, or FOS Ltd, may (unless FEES 2.3.2B R applies) refund all or part of that fee or levy.

06/10/2006

FEES 2.3.2A

A poor estimate or forecast by a fee payer, when providing information relevant to an applicable tariff base, is unlikely, of itself, to amount to an exceptional circumstance for the purposes of FEES 2.3.1 R or FEES 2.3.2 R. By contrast, a mistake of fact or law by a fee payer may give rise to such a claim.

06/10/2006

FEES 2.3.2B

The FSA may 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 payer in respect of a particular period, due to a mistake of fact or law by the fee payer, if the claim is made by the fee payer more than 2 years after the beginning of the period to which the overpayment relates.

06/10/2006

FEES 2.3.3

FEES 2.3.1R, FEES 2.3.2R and FEES 2.3.2B R do not apply to the payment of shares of the FSCS levy.

06/10/2006

FEES 3

Application, Notification and Vetting Fees

FEES 3.1

Introduction

01/01/2006

Application

FEES 3.1.1

This chapter applies to every person set out in FEES 1.1.2R (1).

01/01/2006

FEES 3.1.2

This chapter does not apply to an EEA firm that wishes to exercise an EEA right.

01/01/2006

Purpose

FEES 3.1.3

The purpose of this chapter is to set out the FSA fee paying requirements on the persons set out in FEES 1.1.2R (1). The FSA's power to charge in respect of guidance regarding the Basel Capital Accord is derived from section 157(4)(c) of the Act.

01/01/2006

FEES 3.1.4

Most of the detail of what fees are payable by the persons referred to in FEES 3.1.3 G is set out in FEES 3 Annex 1 - FEES 3 Annex 6.

01/01/2006

FEES 3.1.5

(1) The rates set for authorisation fees represent an appropriate proportion of the costs of the FSA in processing the application or exercise of Treaty rights.
(2) The fees for collective investment schemes reflect the estimated costs to the FSA of assessing applications and notifications. The level of fees payable in respect of an application or a notification will vary depending upon the provision of the Act under which it is made. This fee is adjusted when the scheme concerned is an umbrella scheme.
(3) Application fees for recognised bodies are calculated from a tariff structure intended to reflect the estimated cost of processing an application of that type and complexity.

01/01/2006

FEES 3.1.6

Applications for Part IV permission (and exercises of Treaty rights) are categorised by the FSA for the purpose of fee raising as complex, moderately complex and straightforward as identified in FEES 3 Annex 1. This differentiation is based on the permitted activities sought and does not reflect the FSA's risk assessment of the applicant (or Treaty firm).

01/01/2006

FEES 3.1.7

A potential applicant for Part IV permission (or Treaty firm) has the opportunity to discuss its proposed application (or exercise of Treaty rights) with the FSA before submitting it formally. (For more information, contact the Firm Contact Centre (020 7066 3954) or visit the FSA website How do I get authorised: http://www.fsa.gov.uk/Pages/Doing/how/index.shtml.) If an applicant for Part IV permission (or Treaty firm) does so, the FSA will be able to use that dialogue to make an initial assessment of the fee categorisation and therefore indicate the authorisation fee that should be paid.

06/10/2007

FEES 3.1.8

See the FSA website How do I get authorised: http://www.fsa.gov.uk/Pages/Doing/how/index.shtml in relation to the procedures for making applications for Part IV permission and SUP 13A for procedures for the exercise of Treaty rights by Treaty firms.

06/10/2007

FEES 3.2

Obligation to pay fees

01/01/2006

General

FEES 3.2.1

A person in column (1) of the table in FEES 3.2.7 R as the relevant fee payer for a particular activity must pay to the FSA a fee for each application or request for vetting or admission approval made, or notification or notice of exercise of a Treaty right given, as is applicable to it, as set out or calculated in accordance with the provisions referred to in column (2) of that table:

(1) in full and without deduction; and
(2) on or before the date given in column (3) of that table.

01/01/2006

FEES 3.2.2

If an application for a Part IV permission (or exercise of a Treaty right) falls within more than one category set out in FEES 3 Annex 1, only one fee is payable. That fee is the one for the category to which the highest fee tariff applies.

01/01/2006

Method of payment

FEES 3.2.3

(1) Unless (2) applies, the sum payable under FEES 3.2.1 R must be paid by bankers draft, cheque or other payable order.
(2) FSA does not specify a method of payment for a person seeking to become a recognised body or a designated professional body or to be added to the list of designated investment exchanges.

01/01/2006

FEES 3.2.4

The FSA expects that a person seeking to become a recognised body or a designated professional body or to be added to the list of designated investment exchanges will generally pay their respective fees by electronic credit transfer.

01/01/2006

FEES 3.2.5

(1) The appropriate authorisation fee is an integral part of an application for, or an application for a variation of, a Part IV permission Any application received by the FSA without the accompanying appropriate fee, in full and without deduction (see FEES 3.2.1 R), will not be treated as an application made, incomplete or otherwise, in accordance with section 51(3)(a) or section 44, of the Act. Where this is the case, the FSA will contact the applicant to point out that the application cannot be progressed until the appropriate fee has been received. In the event that the appropriate authorisation fee, in full and without deduction, is not forthcoming, the application will be returned to the applicant and no application will have been made.
(2) With the exception of persons seeking to become a designated professional body, all applications, notifications, requests for vetting or admission approval will be treated as incomplete until the relevant fee is fully paid and the FSA will not consider an application, notification, request for vetting or admission approval until the relevant fee is fully paid. Persons seeking to become a designated professional body have 30 days after the designation order is made to pay the relevant fee.

01/01/2006

FEES 3.2.6

Fees paid under this chapter are not refundable.

01/01/2006

FEES 3.2.7

Table of application, notification and vetting fees

(1) Fee payer

(2) Fee payable

Due date

(a)

Any applicant for Part IV permission (including an incoming firm applying for top-up permission)

(1)

Unless (2) applies, in respect of a particular application, the highest of the tariffs set out in FEES 3 Annex 1 part 1 which apply to that application.

On or before the application is made

(2)

In respect of a particular application which is:

(i)

a straightforward or moderately complex case for the purposes of FEES 3 Annex 1 part 1, and

(ii)

only involves a simple change of legal status as set out in FEES 3 Annex 1 part 6,
the fee payable is 50% of the tariff that would otherwise be payable in FEES 3 Annex 1 part

(b)

Any Treaty firm that wishes to exercise a Treaty right to qualify for authorisation under Schedule 4 to the Act (Treaty rights) in respect of regulated activities for which it does not have an EEA right, except for a firm providing cross border services only

(1)

Where no certificate has been issued under paragraph 3(4) of Schedule 4 to the Act the fee payable is, in respect of a particular exercise, set out in FEES 3 Annex 1, part 4

On or before the notice of exercise is given

(2)

Where a certificate in (i) has been issued no fee is payable

(c)

Any applicant for a certificate under article 54 of the Regulated Activities Order

2,000

On or before the application is made

(d)

Applicants for an authorisation order for, or recognition of, a collective investment scheme

FEES 3 Annex 2, part 1

On or before the application is made

(e)

The operator of a scheme making a notification under section 264 or section 270 of the Act

FEES 3 Annex 2, part 2

On or before the date the application is made

(f)

Any person seeking an order under section 326(1) of the Act to become a designated professional body.

10,000

30 days after the order is granted

(g)

Any applicant for recognition as a UK recognised body under section 287 or section 288 of the Act

FEES 3 Annex 3, part 1

On or before the date the application is made

(h)

Any applicant for recognition as an overseas recognised body under section 287 or section 288 and section 292 of the Act

FEES 3 Annex 3, part 2

On or before the date the application is made

(i)

An applicant for listing (under the listing rules)

FEES 3 Annex 4, part 1

On or before the date the application is made

(j)

Applicant for approval as sponsor (under the listing rules)

FEES 3 Annex 4, part 2

On or before the date the application is made

(k)

Issuers of tranches from debt issuance programmes and securitised derivative tranches

FEES 3 Annex 4, part 1

An upfront fee is required per tranche for draw downs in the following 12 months

(l)

Under the listing rules, an issuer involved in specific events or transactions during the year where documentation is subject to a transaction vetting

FEES 3 Annex 5, part 1, unless the transaction would come within the definition of significant transaction under category (q) in this table, in which case the fee payable under that category.

On or before the date that relevant documentation is first submitted to the FSA

(m)

Under the prospectus rules, an issuer or person requesting approval or vetting of the documents arising in relation to specific events or transactions that it might be involved in during the year

FEES 3 Annex 5, part 2, unless the transaction would come within the definition of significant transaction under category (q) in this table, in which case the fee payable under that category.

On or before the date that relevant documentation is first submitted to the FSA

(n)

Applicants to be added to the list of designated investment exchanges

50,000

On or before the date the application is made

(o)

Either:

(1) Unless (2) applies, FEES 3 Annex 6.

Where the firm has made an application directly to the FSA, on or before the date the application is made, otherwise within 30 days after the FSA notifies the firm that its EEA parent's Home State regulator has requested the FSA's assistance.

(i)

a firm applying to the FSA for permission to use one of the advanced prudential calculation approaches listed in FEES 3 Annex 6 R (or guidance on its availability), including any future proposed amendments to those approaches or (in the case of any application being made for such permission to the FSA as EEA consolidated supervisor under the) any firm making such an application; or

(2)

(a)

Unless (b) applies a firm submitting a second application for the permission or guidance described in column (1) within 12 months of the first application (where the fee was paid in accordance with (1)) must pay 50% of the fee applicable to it under FEES 3 Annex 6, but only in respect of that second application

(ii)

in the case of an application to a Home State regulator other than the FSA for the use of the Internal Ratings Based approach and the Home State regulator requesting the FSA's assistance in accordance with the Capital Requirements Regulations 2006, any firm to which the FSA would have to apply any decision to permit the use of that approach.

(b)

No fee is payable by a firm in relation to a successful application for a permission based on a minded to grant decision in respect of the same matter following a complete application for guidance in accordance with prescribed submission requirements.

(c)

No fee is payable where the Home State regulator has requested the assistance of the FSA as described in paragraph (o)(ii) of column 1 except in the cases specified in FEES 3 Annex 6.

(p)

A firm applying for a variation of its Part IV permission

(1)

Unless (2) applies, if the proposed new business of the firm would fall within one or more activity groups specified in Part 1 of FEES 4 Annex 1 not applicable before the application, the fee is 50% of the highest of the tariffs set out in FEES 3 Annex 1 which apply to that application

On or before the date the application is made

(2)

If the only change is that the A.12 activity group tariff applied to the firm's business before the variation and the A.13 activity group will apply after variation, no fee is payable(3) In all other cases, other than applications by credit unions, the fee payable is 250, unless the variation involves only the reduction (and no other increases) in the scope of a Part IV permission in which case no fee is payable.

(q)

A significant transaction, being one where:

50,000

On or before the date that the relevant documentation is first submitted to the FSA.

(i)

the issuer has a market capitalisation in excess of 1.5 billion and it is a new applicant for a primary listing under the listing rules, or involved in a reverse or hostile takeover or a significant restructuring; or

(ii)

the issuer has a market capitalisation in excess of 5 billion and is involved in a class 1 transaction or a transaction requiring vetting of an equity prospectus or equivalent document; or

(iii)

the issuer is proposing a Depositary Receipt issue intended to raise more than 5 billion.

(r)

Providers of reporting or trade matching systems applying for recognition under MiFID as an Approved Reporting Mechanism.

20,000

On or before the date the application is made.

(s)

In the case of an insurance business transfer scheme, a transferor.

Note - for the purpose of this paragraph an insurance business transfer scheme consists of a single transferor and a single transferee. Where however such a scheme is part of a single larger scheme, that larger scheme is treated as a single insurance business transfer scheme. If an insurance business transfer scheme includes more than one transferor in accordance with this paragraph, the transferors are liable to pay the fee under column (2) jointly.

Either (1) or (2) as set out below:

On or before any application is made to the FSA for the appointment of a person as an independent expert.

(1)

In the case of an insurance business transfer scheme involving long term insurance business, 18,500; or

(2)

in the case of an insurance business transfer scheme not involving long term insurance business, 10,000.

01/06/2008

FEES 3 Annex 1

Authorisation fees payable

01/01/2006

Part 1 - Authorisation fees payable R

Application type (see Part 2)

Amount payable

(a)

Credit unions - registration of common bond

200

(b)

Version 1 credit unions - authorisation

300

(c)

Version 2 credit unions - authorisation

1,800

(d)

Straightforward

1,500

(e)

Moderately complex

5,000

(f)

Complex

25,000

Part 2 - Complexity Groupings Straightforward Cases R

Straightforward cases

Activity grouping

Description

A.3

Friendly societies only

A.4

Friendly societies only

A.12

Advisory arrangers, dealers or brokers (holding or controlling client money and/or assets)

A.13

Advisory only firms and advisory arrangers, dealers or brokers (not holding or controlling client money and/or assets)

A.14

Corporate finance advisers

A.18

Home finance providers, advisers and arrangers (excluding home finance providers)

A.19

General insurance mediation

Moderately Complex Cases R

Moderately complex cases

Activity grouping

Description

A.1

E-money issuers only

A.2

Home finance providers and administrators

A.3

UK ISPVs

A.4

UK ISPVs

A.5

Managing agents at Lloyd's

A.7

Fund managers

A.9

Operators, trustees and depositaries of, operators of personal pension schemes and operators of stakeholder pension schemes

A.10

Firms dealing as principal

Service companies

Complex Cases R

Complex cases

Activity grouping

Description

A.1

Deposit acceptors (excluding e-money issuers and credit unions)

A.3

Insurers - general (excluding friendly societies and UK ISPVs)

A.4

Insurers - life (excluding friendly societies and UK ISPVs)

Part 4 - Authorisation Fees for Treaty Firms R

If the Treaty firm wishes to undertake the permitted activities in question through its branch in the United Kingdom, the fee is 50% of the fee that would be payable under FEES 3.2.7 R for an applicant for Part IV permission.

If the Treaty firm wishes to undertake the permitted activities in question by providing services in the United Kingdom, the fee is 25% of the fee which would be payable under FEES 3.2.7 R for an applicant for Part IV permission.

Part 5 - Activity Groupings R

The activity group definitions are set out in FEES 4 Annex 1R.

Part 6 - Change of legal status

An application involving only a simple change of legal status for the purposes of FEES 3.2.7 R is from an applicant:

(1)

which is a new legal entity intending to carry on the business, using the same business plan, of an existing firm with no outstanding regulatory obligations cancelling its Part IV permission, and

(2)

which is to:

(a)

have the same or narrower permission, and the same branches (if any), as the firm;

(b)

assume all of the rights and obligations in connection with the regulated activities carried on by the firm;

(c)

continue the same compliance arrangements and compliant client asset and client money procedures, as the firm, subject to any changes required only as a result of the change of legal status;

(d)

continue with a risk profile and arrangements for controlling and monitoring risk which will not be materially different from those of the firm; and

(e)

have the individuals within the firm that are responsible for insurance mediation activity perform the same role for the applicant.

06/11/2006

FEES 3 Annex 2

Application and notification fees payable in relation to collective investment schemes

01/01/2006

Legislative provision

Nature and purpose of fee

Payable by

Amount of fee

Umbrella scheme factor (note 1)

Part 1 Application fees payable for firms to be subject to CIS

Regulation 12 of the OEIC Regulations

On application for an order declaring a scheme to be an ICVC

An applicant

1,200

Section 242 of the Act

On application for an order declaring a scheme to be an AUT

An applicant

1,200

Section 272 of the Act

On application for an order declaring a scheme to be an individually recognised overseas scheme

An application

14,000

Part 2 Application fees payable for firms to be subject to COLL

Regulation 12 of the Act

On application for an order declaring a scheme to be an ICVC, where the scheme is:

An applicant

UCITS scheme

1,200

Non-UCITS retail scheme

1,500

Qualified investor scheme

2,400

Section 242 of the Act

On application for an order declaring a scheme to be an AUT, where the scheme is:

An applicant

UCITS scheme

1,200

Non-UCITS retail scheme

1,500

Qualified investor scheme

2,400

Section 272 of the Act

On application for an order declaring a scheme to be an individually recognised overseas scheme

An applicant

14,000

Part 3 (notifications)

Section 264 of the Act

On giving notice under section 264 of the Act

The operator

600

Section 270 of the Act

On giving notice under section 270 of the Act

The operator

600

Part 4 (Alternative Investment Funds: fees payable for making a notification to the FCA to market an AIF)

Notes:

For an umbrella scheme the fee is multiplied by the factor shown in the final column of the table.

01/01/2006

FEES 3 Annex 3

Application fees payable in connection with Recognised Investment Exchanges and Recognised Clearing Houses

01/01/2006

Description of applicant

Amount payable

Due date

Part 1 (UK recognised bodies)

Applicant for recognition as a UK RIE

100,000

Date the application is made

Applicant for recognition as a UK RCH

100,000

Date the application is made

Additional fees for applicant who proposes to:

act as a central counterparty

25,000

Date the application is made

offer safeguarding and administration services

25,000

Date the application is made

use substantially new and untested information technology systems in the performance of its relevant functions

25,000

Date the application is made

Part 2 (overseas recognised bodies)

Applicant for recognition as a recognised overseas investment exchange

50,000

Date the application is made

Applicant for recognition as a recognised overseas clearing house

50,000

Date the application is made

Additional fees for applicant who proposes to:

act as a central counterparty

25,000

Date the application is made

offer safeguarding and administration services

25,000

Date the application is made

01/01/2006

FEES 3 Annex 4

Application fees in relation to listing rules

01/04/2007

Part 1

Fee type

Fee amount

Application Fees

Application for listing

225 plus 100 per each additional issue of securities with its own International Securities Identification Number unless the fee in Categories 6 or 8 of FEES 3 Annex 5 Part 2 applies.

Part 2

Sponsor Application Fees

Fee type

Fee amount

Application for approval as sponsor

4,000

01/06/2007

FEES 3 Annex 5

Document vetting and approval fees in relation to listing and prospectus rules

01/01/2006

Part 1

Fee type

Fee amount

Transaction vetting fees
Transaction vetting fees relate to specific events or transactions that an issuer might be involved in during the year.

Eligibility

New applicants

1,300

Category 1

Class 1 transactions
Listing particulars for Depositary Receipts

5,700

Category 2

Listing particulars for issuers of specialist securities

2,500

Category 3

All other vetting only transactions

2,500

Category 4

Supplementary listing particulars

500

Part 2
These fees relate to approval or vetting of the documents referred to in the second column of this table arising in relation to specific events or transactions that an issuer, offeror or person requesting admission might be involved in during the year.

Category 1

Equity prospectus
Equivalent document referred to in PR 1.2.2R(2) or (3) or PR 1.2.3R(3) or (4)
Depositary Receipt prospectus

5,700

Category 2

Equity registration document

4,000

Category 3

Equity securities note and summary
Summary document referred to in PR 1.2.3R(8)

2,500

Category 4

Non-equity prospectus or base prospectus (excluding drawdown prospectus or base prospectus)
Equivalent document referred to in PR 1.2.2R(2) or (3) or PR 1.2.3R(3) or (4)

2,500

Category 5

Non-equity registration document

1,750

Category 6

Non-equity securities note and summary
Summary document referred to in PR 1.2.3R(8)

600

Category 7

Supplementary prospectus

500

Category 8

Drawdown prospectus or base prospectus

600

For the purposes of categories 1-3 of this fee schedule, equity does not include convertible securities or depositary receipts. These are treated as non-equity.
Where a fee in category 6 or 8 of this fee schedule is payable, the listing application fee under FEES 3 Annex 4 Part 1 does not apply.
Fees from other fee schedules contained in other sections of the sourcebook may be applicable to a single submission.
Certain transactions may come within the category of significant transactions and thus attract a higher fee, as set out in 3.2.7(q) R.

01/06/2007

FEES 3 Annex 6

Fees payable for a permission or guidance on its availability in connection with the Basel Capital Accord

01/06/2008

Part 1 Fees payable other than in relation to the counterparty credit risk internal model method.

(1)

Paragraphs (2) and (3) deal with an application made to the FSA rather than a request for assistance under the Capital Requirements Regulations 2006.

(2)

For firms falling into a group (Group 1) in which there are five or more significant overseas entities to which the application relates and the application is for permission to use one of the advanced prudential calculation approaches listed in Tables 1 or 2 or guidance on the availability of such a permission the fees in Table 1 are applicable.

(3)

For all other firms the fees in Table 2 are applicable.

(4)

Where a request for assistance regarding an Advanced or Foundation IRB application under the Capital Requirements Regulations 2006 has been made to the FSA as detailed in FEES 3.2.7 R (o), the fees in Table 1 and Table 2 are applicable if any firm referred to in FEES 3.2.7 R (o)(ii) meets the following conditions:

(i)

it is a UK domestic firm and has permission to accept deposits; and

(ii)

the firm does not fall within Group 4 as defined in Table 2.

(5)

If however the application or request is in relation to the use of the advanced IRB approach and the FSA (in the case of (2) or (3)) or the relevant Home State regulator (in the case of (4)) has already granted permission for the use of the foundation IRB approach at the time of the application then Table 3 applies.

Table 1

Application group

Description of group

Application fee 2008/09

Advanced IRB ('000)

Foundation IRB ('000)

AMA ('000)

Group 1

Five or more significant overseas entities as described in more detail in the definition of Group 1 in the introduction to Part 1 of this Annex

268

232

181

Table 2

Application group

Description of group

Application fee 2008/09

Modified eligible liabilities (m)

Number of traders as at 31 December 2007

Advanced IRB ('000)

Foundation IRB ('000)

AMA ('000)

Group 2

>40,000

>200

232

198

146

Group 3

>5,000 - 40,000

26 - 200

Group 4

0 - 5,000

0 - 25

(1)

[Deleted]

(2)

For the purposes of Table 2, a firm's A.1 or A10 tariff data for the relevant period will be used to provide the value of modified eligible liabilities or number of traders.

Table 3 (Advanced IRB approach where the FSA or Home State regulator has already given permission to use the foundation IRB approach)

Application group

Advanced IRB Application fee 2008/09 ()

Group 1

67,000

Group 2

58,000

Group 3

23,500

Group 4

10,500

The four application groups have the same meaning as they do in Tables 1 and 2.

Part 2
Fees payable in relation to the counterparty credit risk internal model method.
54,000

01/06/2008

FEES 4

Periodic fees

FEES 4.1

Introduction

01/01/2006

Application

FEES 4.1.1

This chapter applies to every person set out in FEES 1.1.2R (2).

01/01/2006

Purpose

FEES 4.1.2

The purpose of this chapter is to set out the requirements on firms and others to pay periodic fees and transaction reporting fees in certain circumstances.

01/01/2006

Background

FEES 4.1.3

Most of the detail of the periodic fees that are payable by firms is set out in FEES 4 Annexes 1-8. Most of the provisions of the Annexes will vary from one financial year to another. Accordingly fresh FEES 4 Annexes will come into force, following consultation, for each financial year.

01/01/2006

FEES 4.1.4

(1) The periodic fees for collective investment schemes reflect the estimated costs to the FSA of considering proposals to change regulated collective investment schemes, maintaining up to date records about them, and related policy work.
(2) The provision of the Transaction Reporting System facilities for firms reporting transactions under SUP 17 incurs costs to the FSA. These costs depend upon the amount the facility is used. Accordingly the income which the FSA receives from these transactions reporting fees will be set and accounted for separately from the fee-block tariffs, and are set out in FEES 4 Annex 3.

01/04/2007

FEES 4.1.5

The Society of Lloyd's, which has permission under section 315(2) of the Act (The Society: authorisation and permission), has its own fee block.

01/01/2006

FEES 4.1.6

The FSA will allocate penalties received for the benefit of relevant fee payers by way of a permitted deduction specified in FEES 4 Annex 2, or in the case of listed issuers, as notified to issuers annually, for the relevant year.

01/01/2006

FEES 4.1.7

In the case of periodic fees for firms, fees are calculated individually for each firm, but they may be paid on a group basis, if the group so wishes.

01/01/2006

FEES 4.2

Obligation to pay periodic fees

01/01/2006

General

FEES 4.2.1

A person shown in column (1) of the table in FEES 4.2.11 R as the relevant fee payer must pay each periodic fee applicable to it, calculated in accordance with the provisions referred to in column (2) of that table, as adjusted by any relevant provision in this chapter:

(1) in full and without deduction (unless permitted or required by a provision in FEES); and
(2) on or before the date given in column (3) of that table, unless FEES 4.2.10 R applies.

01/01/2006

FEES 4.2.2

(1) A relevant fee payer will be required to pay a periodic fee for every year during which they have the status in column 1 of the table in FEES 4.2.11 R (or in relation to collective investment schemes, for every year during which it is a regulated collective investment scheme) subject to any reductions or exemptions applicable under this chapter. If a person is the relevant fee payer for more than one status listed in column 1 of the table in FEES 4.2.11 R (or in relation to collective investment schemes, the relevant fee payer for more than one regulated collective investment scheme) he will be required to pay a fee in relation to each.
(2) A recognised body may also have obligations to pay fees to the FSA under other rules arising from legislation other than the Act. For example a recognised body may have an obligation to pay a fee as an approved operator of a relevant system under the Uncertificated Securities Regulations 1995 (SI 1995/3272).

01/01/2006

FEES 4.2.3

The FSA will issue invoices to firms and other fee payers and expects to do so at least 30 days before the dates on which payments fall due under FEES 4.2.1 R.

01/01/2006

Method of payment

FEES 4.2.4

(1) Unless (2) applies, a periodic fee must be paid using either direct debit, credit transfer (BACS/CHAPS), cheque, switch or by credit card (Visa/Mastercard only). Any payment by permitted credit card must include an additional 2% of the sum paid.
(2) The FSA does not specify a method of payment for a recognised body or a designated professional body.

01/06/2006

FEES 4.2.5

The FSA expects a recognised body or a designated professional body will generally pay their respective fees by electronic credit transfer.

01/01/2006

Modifications for persons becoming subject to periodic fees during the course of a financial year

FEES 4.2.6

(1) Unless (2) applies, if the event, as described in column 4 of the table in FEES 4.2.11 R, giving rise to, or giving rise to an increase in, the fee payable in FEES 4.2.1 R, occurs on or after 1 July of the relevant financial year, the periodic fee required under FEES 4.2.1 R is modified for:

(a) firms (other than ICVCs and UCITS qualifiers) in accordance with FEES 4.2.7 R and FEES 4.2.8 R;
(b) for all other fee payers in column (1) of the table in FEES 4.2.11 R, in accordance with the table below.

Period in which event (in column 4 of the table in FEES 4.2.11 R) occurs

Proportion of periodic fee 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%

(2) For recognised bodies, if the recognition order is made during the course of the relevant financial year, the periodic fee required is set out in Column (4) of the table in FEES 4.2.11 R.

01/01/2006

FEES 4.2.7

A firm (other than an ICVC or UCITS qualifier) which becomes authorised, or whose permission is extended, during the course of the financial year must pay a fee which is calculated by:

(1) identifying each of the tariffs set out in Part 1 of FEES 4 Annex 2R for the relevant financial year that apply to the firm only after the permission is received or extended, but ignoring:

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

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

(a) the minimum fee specified for the tariff; and
(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;

(3) adding together the amounts calculated under (2); and
(4) modifying the result as indicated by the table in FEES 4.2.6 R.

01/04/2008

FEES 4.2.7A

Projected valuations for a firm's first year will be collected for the 12 month period beginning with the date a firm becomes authorised, or the date permission is extended. That information will be used to calculate the periodic fee for the remainder of the financial year in which the firm was authorised or its permission was extended (adjusted in accordance with FEES 4.2.7 R) and to calculate the periodic fee for the following financial year.

01/06/2006

FEES 4.2.8

In relation to an incoming EEA firm or an incoming Treaty firm the modification provisions of FEES 4.2.7 R apply only in relation to the relevant regulated activities of the firm, which are passported activities or Treaty activities and which are carried on in the United Kingdom, and which are not provided on a cross border services basis.

01/11/2007

Fee payers ceasing to hold relevant status or reducing the scope of their permission after start of relevant period

FEES 4.2.9

The FSA will not refund periodic fees if, after the start of the period to which they relate:

(1) a fee payer ceases to have the status set out in column (1) of the table in FEES 4.2.11 R; or
(2) a firm reduces its permission so that it then falls out of the fee-block previously applied to it,

(but see FEES 2.3 (Relieving Provisions) and FEES 4.3.13 R (Firms Applying to Cancel or Vary Permission Before Start of Period)).

01/01/2006

Extension of Time

FEES 4.2.10

A person need not pay a periodic fee on the date on which it is due under the relevant provision in FEES 4.2.1 R, if:

(1) that date falls during a period during which circumstances of the sort set out in GEN 1.3.2 R (Emergencies) exist, and that person has reasonable grounds to believe that those circumstances impair its ability to pay the fee, in which case he must pay it on or before the fifth business day after the end of that period; or
(2) unless FEES 4.3.6R (3) or FEES 4.3.6R (4) (Time and method for payment) applies, that date would otherwise fall on or before the 30th day after the date on which the FSA has sent written notification to that person of the fee payable on that date, in which case he must pay on or before the 30th day after the date on which the FSA sends the notification.

01/01/2006

FEES 4.2.11

Table of periodic fees

1 Fee payer

2 Fee payable

3 Due date

4 Events occurring during the period leading to modified periodic fee

Any firm (except an ICVC or a UCITS qualifier)

As specified in FEES 4.3.1 R

(1)

Unless (2) applies, on or before the relevant dates specified in FEES 4.3.6 R

Firm receives permission; or Firm extends permission

(2)

If an event specified in column 4 occurs during the course of a financial year, 30 days after the occurrence of that event, or if later the dates specified in FEES 4.3.6 R.

Any firm which reports transactions to the FSA using the FSA's Direct Reporting System or FSA's Transaction Reporting System (see SUP 17)

FEES 4 Annex 3

(1)

For transaction charges, the first working day of each month

Not applicable

(2)

For licence fees and enrolment charges, by the date set out on the relevant invoice

Persons who hold a certificate issued by the FSA under article 54 of the Regulated Activities Order (Advice given in newspapers etc.)

£1,000

(1)

Unless (2) applies, on or before 30 April

Certificate issued to person by FSA under Article 54 RAO

(2)

If an event in column 4 occurs during the course of a financial year, 30 days after the occurrence of that event

Any manager of an authorised unit trust;

In relation to each unit trust the amount specified in FEES 4 Annex 4

Authorisation order is made in relation to the relevant scheme

Any ACD of an ICVC; and

In relation to each ICVC the amount specified in FEES 4 Annex 4

Persons who, under the constitution or founding arrangements of a recognised scheme, is responsible for the management of the property held for or within the scheme;

In relation to each recognised scheme the amount specified in FEES 4 Annex 4

The relevant scheme becomes a recognised collective investment scheme

Designated professional body

FEES 4 Annex 5

1 July or if payment is by instalments, by the due dates set out in FEES 4 Annex 5

Not applicable

UK recognised body

FEES 4 Annex 6, part 1

(1)

Unless (2) applies, by the due dates set out in FEES 4 Annex 6, part 1

Recognition order is made. Modified periodic fee:

(2)

If the event in column 4 occurs during the course of a financial year, 30 days after the occurrence of that event

(1)

for a UK recognised investment exchange, 150,000;

(2)

for a UK recognised clearing house, 250,000.

Overseas recognised body

FEES 4 Annex 6, part 2

(1)

, unless (2) applies, 1 July.

Recognition order is made. Modified periodic fee:

(2)

If the event in column 4 occurs during the course of a financial year, 30 days after the occurrence of that event.

(1)

for an overseas investment exchange, 10,000;

(2)

for a overseas clearing house, 35,000.

Listed issuers (in LR) of shares, depositary receipts and securitised derivatives (in LR), unless the conditions set out below apply.
The first condition is that the listed issuer, or a related entity, has already paid a periodic fee in respect of the period concerned. The second condition is that the listed issuer is subject to listing rules as a result of a reverse takeover, or that the listed issuer is a newly formed entity, created as a result of a restructuring.

FEES 4 Annex 7

Within 30 days of the date of the invoice

Listed issuer (in LR) becomes subject to listing rules

Periodic fee payable by firms (other than ICVCs and UCITS qualifiers)

01/01/2006

FEES 4.3.1

The periodic fee payable by a firm (except an ICVC or a UCITS qualifier) is:

(1) each periodic fee applicable to it calculated in accordance with FEES 4.3.3 R, using information obtained in accordance with FEES 4.4; less
(2) any deductions from the periodic fee specified in Part 2 of FEES 4 Annex 2.

01/01/2006

FEES 4.3.2

(1) The amount payable by each firm will depend upon the category (or categories) of regulated activities it is engaged in (fee-blocks), and on the amount of business it conducts in each category (tariff base). The fee-blocks and tariffs are identified in in respect of the FCA and in respect of the PRA FEES 4 Annex 1, while FEES 4 Annex 2 sets out the tariff rates for the relevant financial year.
(2) Incoming EEA firms, and incoming Treaty firms receive a discount to reflect the reduced scope of the FSA's responsibilities in respect of them. The level of the discount varies from fee-block to fee-block, according to the division of responsibilities between the FSA and Home state regulators for firms in each fee-block (see FEES 4.3.11 G and FEES 4.3.12 R ).

01/01/2006

Calculation of periodic fee

FEES 4.3.3

The periodic fee referred to in FEES 4.3.1 R is (except in relation to the Society) calculated as follows:

(1) identify each of the tariffs set out in Part 1 of FEES 4 Annex 2 which apply to the business of the firm for the period specified in that annex;
(2) for each of those tariffs, calculate the sum payable in relation to the business of the firm for that period, applying any minimum fee discount as may be applicable (see FEES 4.3.16 R);
(3) add together the amounts calculated under (2); and
(4) apply any applicable payment charge or discount specified in FEES 4.2.4 R, provided that:

(a) for payment by direct debit, successful collection of the amount due is made at the first attempt by the FSA; or
(b) for payment by credit transfer, the amount due is received by the FSA on or before the due date.

01/01/2006

Modification for firms with new or extended permissions

FEES 4.3.4

(1) 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 - see FEES 4.2.5 G and FEES 4.2.6 R.
(2) 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 - see FEES 4.2.6 R and FEES 4.2.7 R.
(3) These provisions apply (with some changes) to incoming EEA firms and incoming Treaty firms.

01/01/2006

Amount payable by the Society of Lloyd's

FEES 4.3.5

The periodic fee referred to in FEES 4.3.1 R in relation to the Society is specified against its name in FEES 4 Annex 2.

01/01/2006

Time of payment

FEES 4.3.6

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

(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 FEES 4.2.1 R relates; and
(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.

(2) 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 August or, if later, within 30 days of the date of the invoice in the financial year to which that sum relates.
(3) If a firm has applied to cancel its Part IV permission in the way set out in SUP 6.4.5 D (Cancellation of permission), then (1) and (2) do not apply but it must pay the total amount due when the application is made.
(4) If the FSA has exercised its own-initiative powers to cancel a firm's Part IV permission in the way set out in EG 8 (Variation and cancellation of permission on the FSA's own initiative and intervention against incoming firms), then (1) and (2) do not apply but the firm must pay the total amount due immediately before the cancellation becomes effective.

28/08/2007

Groups of firms

FEES 4.3.7

A firm which is a member of a group may pay all of the amounts due from other firms in the same group under FEES 4.2.1 R, if:

(1) it notifies the FSA in writing of the name of each other firm within the group for which it will pay; and
(2) it pays the fees, in accordance with this chapter, as a single amount as if that were the amount required from the firm under FEES 4.2.1 R.

01/01/2006

FEES 4.3.8

A notification under FEES 4.3.7R (1) should be made in accordance with SUP 15.7 (Form and method of notification).

01/01/2006

FEES 4.3.9

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 FEES 4.3.7 R, the FSA will apply the sum received among the firms which have been identified in the notification given under FEES 4.3.7R (1) in proportion to the amounts due from them. Each firm will remain responsible for the payment of the outstanding balance attributable to it.

01/01/2006

FEES 4.3.10

If a firm pays its fees through an agent outside the scope of FEES 4.3.7 R, the firm is responsible for ensuring that the FSA is informed that the sum being paid is for that firm's periodic fees.

01/01/2006

Incoming EEA firms and incoming Treaty firms

FEES 4.3.11

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.

01/01/2006

FEES 4.3.12

For an incoming EEA firm or an incoming Treaty firm, the calculation required by FEES 4.3.3 R is modified as follows:

(1) the tariffs set out in Part 1 of FEES 4 Annex 2 are applied only to the regulated activities of the firm which are carried on in the United Kingdom; and
(2) those tariffs are modified in accordance with Part 3 of and, if applicable, Part 3 of FEES 4 Annex 2.

01/01/2006

Firms Applying to Cancel or Vary Permission Before Start of Period

FEES 4.3.13

(1) If:

(a) a firm makes an application to vary its permission (by reducing its scope), or cancel it, in the way set out in SUP 6.3.15 D (3) (Variation of permission) and SUP 6.4.5 D (Cancellation of permission); an issuer makes an application for de-listing; or a sponsor notifies FSA of its intention to be removed from the list of approved sponsors; and
(b) the firm, issuer or sponsor makes the application or notification referred to in (a) before the start of the period to which the fee relates;

FEES 4.2.1 R applies to the firm as if the relevant variation or cancellation of the firm's permission, de-listing or removal from the list of approved sponsors, took effect immediately before the start of the period to which the fee relates.
(2) But (1) does not apply if, due to the continuing nature of the business, the variation, cancellation, de-listing or removal is not to take effect within three months of the start of the period to which the fee relates.

01/04/2006

FEES 4.3.14

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 FEES 4.3.6R (3) and FEES 4.3.6R (4) respectively.

01/01/2006

Firms acquiring businesses from other firms

FEES 4.3.15

(1) This rule applies if:

(a) 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, unless no periodic fee was payable by A in the financial year that the business was acquired from B; or
(b) A became authorised as a result of B's simple change of legal status (as defined in FEES 3 Annex 1 Part 6).

(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, FEES 4.2.6 R to FEES 4.2.7 R do not apply to A in relation to the business acquired from B.
(3) If the acquisition occurs after the valuation date applicable to the business (as set out in FEES 4 Annex 1) which A acquired from B, for the period following that in which the acquisition occurred, FEES 4.2.1 R applies to A, in relation to that following period, as if the acquisition had occurred immediately before the relevant valuation date.

01/04/2008

Minimum fee discount

FEES 4.3.16

(1) A 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. [deleted]
(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. [deleted]
(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 A.1, in which they are a minimum fee payer. [deleted]

01/01/2006

FEES 4.4

Information on which Fees are calculated

01/01/2006

FEES 4.4.1

A firm (other than the Society) must notify to the FSA the value (as at the valuation date specified in Part 3 of FEES 4 Annex 1) of each element of business on which the periodic fee payable by the firm is to be calculated.

01/01/2006

FEES 4.4.2

A firm (other than the Society) must send to the FSA in writing the information required under FEES 4.4.1 R as soon as reasonably practicable, and in any event within two months, after the date specified as the valuation date in Part 3 of FEES 4 Annex 1.

01/01/2006

FEES 4.4.3

To the extent that a firm has provided the information required by this section to the FSA as part of its compliance with another provision of the Handbook, it is deemed to have complied with the provisions of this section.

01/01/2006

FEES 4.4.4

In most cases a firm will provide the information required by this section as part of its compliance with the provisions of SUP. To the extent that the FSA does not obtain sufficient, or sufficiently detailed, information it may seek this by using its general information gathering powers (see SUP 2 (Information gathering by the FSA on its own initiative)).

01/01/2006

FEES 4.4.5

For an incoming EEA firm or an incoming Treaty firm, the information required under FEES 4.4 is limited to the regulated activities of the firm which are carried on in the United Kingdom, except those provided on a cross border services basis.

01/11/2007

FEES 4 Annex 1

Activity groups, tariff bases and valuation dates applicable

01/01/2006

Part 1
This table shows how the regulated activities for which a firm has permission are linked to activity groups (fee-blocks). A firm can use the table to identify which fee-blocks it falls into based on its permission.

Activity group

Fee payer falls in the activity group if

A.1 Deposit acceptors

its permission includes accepting deposits or issuing e-money; BUT DOES NOT include either of the following:
effecting contracts of insurance;
carrying out contracts of insurance.

A.2 Home finance providers and administrators

its permission includes a regulated activity within one or more of the following:
entering into a home finance transaction; or
administering a home finance transaction; or
agreeing to carry on a regulated activity which is within either of the above.

A.3 Insurers - general

its permission includes one or more of the following:
effecting contracts of insurance;
carrying out contracts of insurance;
in respect of specified investments that are:
- general insurance contracts; or
- long-term insurance contracts other than life policies.

A.4 Insurers - life

its permission includes one or more of the following:
effecting contracts of insurance;
carrying out contracts of insurance;
in respect of specified investments including life policies;
entering as provider into a funeral plan contract.

A.5 Managing agents at Lloyd's

its permission includes managing the underwriting capacity of a Lloyd's syndicate as a managing agent at Lloyd's.

A.6 The Society of Lloyd's

it is the Society of Lloyd's.

Note for authorised professional firms:
Generally, for fee-blocks A.7 to A.19 below, only those regulated activities that are not limited to non-mainstream regulated activities should be taken into account in determining which fee-block(s) fee-payers belong to for the purpose of charging periodic fees.
However, in the case that all the regulated activity within a firm permission are limited to non-mainstream regulated activities, then that firm's will be allocated to fee-block A.13 alone.
This does not prevent a fee being payable by an authorised professional firm under FEES 3.2.7 R (p) where it applies to vary its Part IV permission such that it would normally be allocated to fee-block(s) other than A.13 if the variation was granted.

A.7 Fund managers

(1) its permission includes managing investments;
OR
(2) its permission includes
ONLY either one or both of:
safeguarding and administering of investments (without arranging); and
arranging safeguarding and administration of assets;
OR
(3) the firm is a venture capital firm.
Class (1) firms are subdivided into three classes:
- class (1)A, where the funds managed by the firm belong to one or more occupational pension schemes;
- class (1)B, where:
(a) the firm is not a class (1)A firm; and
(b) the firm's permission includes NEITHER of the following:
safeguarding and administering investments (without arranging);
arranging safeguarding and administration of assets; and
(c) the firm EITHER:
has a requirement that prohibits the firm from holding or controlling client money, or both; OR
if it does not have such a requirement, only holds or controls client money (or both), arising from an agreement under which commission is rebated to a client; and
- class (1)C, where the firm is not within class (1)A or class (1)B.

A.8

Not applicable.

A.9 Operators, Trustees and Depositaries of collective investment schemes and Operators of personal pension schemes or stakeholder pension schemes

(1) its permission:
(a) includes one or more of the following:
establishing, operating or winding up a regulated collective investment scheme;
establishing, operating or winding up an unregulated collective investment scheme;
acting as trustee of an authorised unit trust scheme;
acting as the depositary or sole director of an open-ended investment company;
establishing, operating or winding up a personal pension scheme or a stakeholder pension scheme (but only if the firm does not fall within activity group A1 or A4);
AND
(b) PROVIDED the firm is NOT one of the following:
a corporate finance advisory firm;
a firm in which the above activities are limited to carrying out corporate finance business;
a venture capital firm;
OR
(2) if the fee-payer has none of the regulated activities above within its permission, but ALL the remaining regulated activities in its permission are limited to carrying out trustee activities.

A.10 Firms dealing as principal

its permission includes dealing in investments as principal;
BUT NOT if one or more of the following apply:
the firm is acting exclusively as a matched principal broker;
the above activity is limited either to acting as an operator of a collective investment scheme, establishing, operating or winding up a personal pension scheme or a stakeholder pension scheme, or to carrying out trustee activities;
the firm is a corporate finance advisory firm;
the above activity is otherwise limited to carrying out corporate finance business;
the firm is subject to a limitation to the effect that the firm, in carrying on this regulated activity, is limited to entering into transactions in a manner which, if the firm was an unauthorised person, would come within article 16 of the Regulated Activities Order (Dealing in contractually based investments);
the above activity is limited to not acting as a market maker;
the firm is an oil market participant, energy market participant or a local;
its permission includes either:
- effecting contracts of insurance; or
- carrying out contracts of insurance.

A.11

Not applicable.

A.12 Advisory arrangers, dealers or brokers (holding or controlling client money or assets, or both)

its permission:
(a) includes one or more of the following, in relation to one or more designated investments:
dealing in investments as agent;
arranging (bringing about) deals in investments;
making arrangements with a view to transactions in investments;
dealing as principal in investments where the activity is carried on as a matched principal broker, oil market participant, energy market participant or local;
advising on investments (except pension transfers and pension opt-outs);
advising on pension transfers and pension opt-outs;
advising on syndicate participation at Lloyd's;
(b) BUT NONE of the following:
effecting contracts of insurance; or
carrying out contracts of insurance;
AND
(c) CAN HAVE one or more of the following:
safeguarding and administering of assets;
arranging safeguarding and administration of assets;
the ability to hold or control client money, or both:
- that is, there is no requirement which prohibits the firm from doing this; and
- provided that the client money in question does not only arise from an agreement under which commission is rebated to a client;
AND
(d) PROVIDED the fee-payer is NOT any of the following:
a corporate finance advisory firm;
a firm for whom all of the applicable activities above are otherwise limited to carrying out corporate finance business;
a firm whose activities are limited to carrying out venture capital business;
a firm whose activities are limited to acting as an operator of a regulated collective investment scheme;
a firm whose activities are limited to carrying out trustee activities;
a service company.

A.13 Advisory arrangers, dealers or brokers (not holding or controlling client money or assets, or both)

(1) it is an authorised professional firm and ALL the regulated activities in its permission are limited to non-mainstream regulated activities;
OR
(2) its permission:
(a) includes one or more of the following, in relation to one or more designated investments:
dealing in investments as agent;
arranging (bringing about) deals in investments;
making arrangements with a view to transactions in investments;
dealing as principal in investments where the activity is carried on as a matched principal broker, oil market participant, energy market participant or local;
advising on investments (except pension transfers and pension opt-outs);
giving basic advice on a stakeholder product;
advising on pension transfers and pension opt-outs;
advising on syndicate participation at Lloyd's;
(b) BUT NONE of the following:
effecting contracts of insurance;
carrying out contracts of insurance;
safeguarding and administration of assets;
arranging safeguarding and administration of assets;
AND
(c) MUST EITHER, in connection with its designated investment business:
have a requirement that prohibits the firm from holding or controlling client money, or both;
OR
if it does not have such a requirement, only holds or controls client money (or both), arising from an agreement under which commission is rebated to a client;
AND
(d) PROVIDED the fee-payer is NOT any of the following:
a corporate finance advisory firm;
a firm for whom all of the applicable activities above are otherwise limited to carrying out corporate finance business;
a firm whose activities are limited to carrying out venture capital business;
a firm whose activities are limited to acting as an operator of a regulated collective investment scheme;
a firm whose activities are limited to carrying out trustee activities;
a service company.

A.14 Corporate finance advisers

the firm is carrying on corporate finance business PROVIDED the fee-payer is NOT a venture capital firm.

A.15

Not applicable.

A.16 Pensions review levy firms

it was liable to pay the Pensions Levy to PIA in 2001/2002.

A.17

Not applicable.

A.18 Home finance providers, advisers and arrangers

its permission includes a regulated activity within one or more of the following:
entering into a home finance transaction; or
arranging (bringing about) a home finance transaction; or
making arrangements with a view to a home finance transaction; or
advising on a home finance transaction; or
agreeing to carry on a regulated activity which is within any of the above.

A.19 General insurance mediation

its permission includes one or more of the following in relation to a non-investment insurance contract:
dealing in investments as agent; or
arranging (bringing about) deals in investments; or
making arrangements with a view to transactions in investments; or
assisting in the administration and performance of a contract of insurance; or
advising on investments; or
agreeing to carry on a regulated activity which is within any of the above.

B. Market operators

Firms that have been prescribed as an operator of a prescribed market under the Financial Services and Markets Act 2000 (Prescribed Markets and Qualifying Investments) Order 2001 (SI 2001/996).

B. Service companies

it is a service company.

Part 2
This table indicates the tariff base for each fee-block. The tariff base is the means by which we measure the 'amount of business' conducted by a firm. Note that where the tariff base is the number of approved persons it may be that a particular firm has permission for relevant activities as described in Part 1 but the type of activity that the firm undertakes is not one requiring a person to be approved to undertake a relevant customer function (for example firms only giving basic advice on stakeholder products). In these circumstances, the firm will be required to pay a minimum fee only (see FEES 4 Annex 2 Part 1).

Activity group

Tariff-base

A.1

MODIFIED ELIGIBLE LIABILITIES
For banks:
Part 1:
Liabilities
In sterling:
2 + 3 + 4 + 5A + 5B + 6B + 6C + 6D + 6E + 6F + 6G + 6H + 6J + 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 + E8 + E10 + 60% of E11A + E44 + C2 + C3 + C4 + C5A + C5B + C6B + C6C + C6D + C6E + C6F + C6G + C6H + C6J + C8 + C10 + 60% of C11A: less
Assets
In sterling:
21B + 60% of 22A + 23D + 23E + 23F + 30A + 30B + 32AA1 + 32AA2
plus
In foreign currency, one-third of:
E21B + 60% of E22A + E23D + E23E + E23F + E30A + E30B + E32AA1 + E32AA2 + C21B + 60% of C22A + C23D + C23E + C23F + C30A + C30B + C32AA1 + C32AA2

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 plus one-third of both E45D and C45D from the sum of item 45BA, plus one-third of both E45BA and C45BA 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.

For e-money issuers:
Outstanding balance of e-money liabilities
For credit unions:
Deposits with the credit union (share capital)

LESS
the credit union's bank deposits (investments + cash at bank)
Note:
Only United Kingdom business is relevant for calculating credit unions' MELs.

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)

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.

A.2

NUMBER OF MORTGAGES OR OTHER HOME FINANCE TRANSACTIONS ENTERED INTO AND ADMINISTERED
The number of new mortgage contracts, home purchase plans or home reversion plans entered into;
AND
The number of mortgage contracts, home purchase plans or home reversion plans being administered, multiplied by 0.05 for mortgage outsourcing firms or other home finance outsourcing firms and by 0.5 for all other firms.
Notes:
(1) Mortgage outsourcing firms are firms with permission for administering regulated mortgage contracts, but not to enter the contract as lender.
Home finance outsourcing firms are firms with permission for administering a home finance transaction, but not entering into a home finance transaction.
(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.
(3) Mortgages, home purchase plans or home reversion plans administered include those that the firm administers on behalf of other firms.

A.3

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;

less, premiums relating to pension fund management business where the firm owns the investments and there is no transfer of risk;

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.

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 Kingdom branch; 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.

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.

Notes:
(1) In both (a) and (b) above only premium receivable in respect of United Kingdom business are relevant.
(2) For UK ISPVs the tariff base is not relevant and a flat fee set out in FEES 4 Annex 2R is payable.

A.4

ADJUSTED GROSS PREMIUM INCOME AND MATHEMATICAL RESERVES
Except for UK ISPVs:
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 or tied agents (either single or multi-tie) will be divided by two in calculating the adjusted gross premium income;

AND
the amount of mathematical reserves (IPRU(INS) Appendix 9.1R - Form 14, Line 11) 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) [deleted]
(2) Only premiums receivable and mathematical reserves held in respect of United Kingdom business are relevant.
(3) For UK ISPVs the tariff base is not relevant and a flat fee set out in FEES 4 Annex 2 is payable.

A.5

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.

A.6

Not applicable.

A.7

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.

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.

A.8

Not applicable.

A.9

GROSS INCOME
For operators (including ACDs and managers of unit trusts but excluding operators of a personal pension scheme or a stakeholder pension scheme):
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;

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).
For operators of a personal pension scheme or a stakeholder pension scheme:
The amount of the charges levied on the personal pension scheme or stakeholder pension scheme for which they act as operator:
including up-front charges, fund related charges, transaction related charges and periodic charges; but
excluding charges made to an investor in respect of third party suppliers; for example, charges for stock broking, borrowing, banking services and charges for arranging third party legal services, surveys or environmental screening in connection with property.
Note:
Only the gross income corresponding to United Kingdom business is relevant.

A.10

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.

A.11

Not applicable.

A.12

APPROVED PERSONS
The number of persons approved to perform the customer function (CF 30), but excluding those persons solely acting in the capacity of an investment manager or solely advising clients in connection with corporate finance business or performing functions related to these.

A.13

A.14

APPROVED PERSONS
The number of persons approved to perform the customer function (CF 30) who advise clients in connection with corporate finance business or perform related functions.

A.15

Not applicable.

A.16

Percentage share of the amount paid towards PIA's 2001/2002 pensions review levy by fee-payers in fee-block A.16.

A.17

Not applicable.

A.18

ANNUAL INCOME
(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 home finance mediation activity (or activities which would have been mortgage mediation activity if they had been carried out after 30 October 2004 or home purchase mediation activity or home reversion mediation activity if they had been carried out on or after 6 April 2007);
Plus
(b) for any home finance mediation activity carried out by the firm for which it receives payment from the lender or provider on a basis other than that in (a), the value of all new mortgage advances and amounts provided under other home finance transactions resulting from that activity multiplied by 0.004;
Plus
(c) if the firm is a home finance provider, the value of all new mortgage advances and amounts provided under other home finance transactions which are or would be regulated mortgage contracts if they had been made after 30 October 2004 or home purchase plans or home reversion plans if they had been made on or after 6 April 2007 (other than those made as a result of home finance mediation activity by another firm), multiplied by 0.004.
For mortgage outsourcing firms or home finance outsourcing firms whose permission does not include advising on a home finance transaction the relevant amounts are multiplied by 0.15.
Notes on annual income:
(1) For 2004/05 and 2005/06 firms have supplied this data on their 'HSF1' or 'variation of permission' application form.
(2) For the purposes of calculating annual income, "net amount retained" means all the commission, fees, etc. in respect of home finance 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.
(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.
(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 or home purchase mediation activity or reversion mediation activity if they had been carried out on or after 6 April 2007.
(5) Mortgage outsourcing firms are firms whose permission includes administering regulated mortgage contracts, but not entering into a regulated mortgage contract. Home finance outsourcing firms are firms whose permission includes administering a home finance transaction, but not entering into a home finance transaction.

A.19

ANNUAL INCOME (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;
Plus (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;
Plus (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:
(i) result from insurance mediation activity by another firm, where a payment has been made by the insurer to the firm under (a); or
(ii) the insurer reports in, and pays a fee under, the A.4 activity group; or
(iii) are not general insurance contracts or pure protection contracts.
Notes on annual income:
(1) For 2004/05 and 2005/06 firms have supplied this data on their 'HSF1' or 'variation of permission' application form.
(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.
(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.
(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.

B. Market operators

Not applicable.

B. Service companies

Not applicable.

Part 3

This table indicates the valuation date for each fee-block. A firm can calculate its tariff data by applying the tariff bases set out in Part 2 with reference to the valuation dates shown in this table.

Activity group

Valuation date

IN THIS TABLE, REFERENCES TO SPECIFIC DATES OR MONTHS ARE REFERENCES TO THE LATEST ONE OCCURRING BEFORE THE START OF THE PERIOD TO WHICH THE FEE APPLIES, UNLESS OTHERWISE SPECIFIED - E.G. FOR 2004/05 FEES (1 APRIL 2004 TO 31 MARCH 2005), A REFERENCE TO DECEMBER MEANS DECEMBER 2003.

Where a firm's tariff data is in a currency other than sterling, it should be converted into sterling at the exchange rate prevailing on the relevant valuation date.

A.1

For banks:
Modified eligible liabilities (MELs), valued at:
for a firm which reports monthly, the average of the MELs for October, November and December;
for a firm which reports quarterly, the MELs for December.
For e-money issuer:
MELs, valued at the end of the financial year ended in the calendar year ending 31 December.
For credit unions:
MELs, valued at December or as disclosed by the most recent annual return made prior to that date.
For building societies:
MELs, valued at the average of the MELs for October, November and December.

A.2

Number of mortgages, home purchase plans or home reversion plans entered into in the twelve months ending 31 December.
AND
Number of mortgages, home purchase plans or home reversion plans being administered on 31 December.

A.3

Annual gross premium income (GPI), for the financial year ended in the calendar year ending 31 December.
AND
Gross technical liabilities (GTL) valued at the end of the financial year ended in the calendar year ending 31 December.

A.4

Adjusted annual gross premium income (AGPI) for the financial year ended in the calendar year ending 31 December.
AND
Mathematical reserves (MR) valued at the end of the financial year ended in the calendar year ending 31 December.

A.5

Active capacity (AC), in respect of the Underwriting Year (as reported to the Society of Lloyd's) which is current at the beginning of the period to which the fee relates.
[Note: this is the Underwriting Year which is already in progress at the start of the fee period - e.g. for 2004/05 fees, the fee period will begin on 1 April 2004, which is in the 2004 Underwriting Year, so the AC for that Underwriting Year is the relevant measure.]

A.6

Not applicable.

A.7

Funds under management (FuM), valued at 31 December.

A.8

Not applicable.

A.9

Annual gross income (GI), valued at the most recent financial year ended before 31 December.

A.10

Number of traders as at 31 December.

A.11

Not applicable.

A.12

Relevant approved persons as at 31 December.

A.13

Relevant approved persons as at 31 December.

A.14

Relevant approved persons as at 31 December.

A.15

Not applicable.

A.16

Not applicable.

A.17

Not applicable.

A.18

Annual income (AI) for the financial year ended in the calendar year ending 31 December.

A.19

Annual income (AI) for the financial year ended in the calendar year ending 31 December.

B. Market operators

Not applicable.

B. Service companies

Not applicable.

01/04/2008

FEES 4 Annex 2

Fee tariff rates, permitted deductions and EEA/Treaty firm modifications for the period from 1 April 2008 to 31 March 2009

01/06/2008

Part 1
This table shows the tariff rates applicable to each fee block

(1)

For each activity group specified in the table below, the fee is the total of the sums payable for each of the tariff bands applicable to the firm's business, calculated as follows:

(a)

the relevant minimum fee; plus

(b)

an additional fee calculated by multiplying the firm's tariff base by the appropriate rates applying to each tranche of the tariff base, as indicated.

(2)

A firm may apply the relevant tariff bases and rates to non-UK business, as well as to its UK business, if:

(a)

it has reasonable grounds for believing that the costs of identifying the firm's UK business separately from its non-UK business in the way described in Part 2 of FEES 4 Annex 1 are disproportionate to the difference in fees payable; and

(b)

it notifies the FSA in writing at the same time as it provides the information concerned under FEES 4.4 (Information on which fees are calculated), or, if earlier, at the time it pays the fees concerned.

(3)

For a firm which has not complied with FEES 4.4.2 R (Information on which fees are calculated) for this period:

(a)

the fee is calculated using (where relevant) the valuation or valuations of business applicable to the previous period, multiplied by the factor of 1.10;

(b)

an additional administrative fee of £250 is payable; and

(c)

the minimum total fee (including the administrative fee in (b)) is £430.

Activity group

Fee payable

A.1

Minimum fee (£)

£160

million of Modified Eligible Liabilities (MELs)

Fee (/m or part m of MELS)

0 - 0.5

>0.5 - 2

additional flat fee of 380

>2 -10

additional flat fee of 530

>10 - 200

24.72

>200 - 2,000

24.69

>2,000 - 10,000

24.61

>10,000 - 20,000

24.43

>20,000

24.26

For a firm in A.1 which has a limitation on its permission to the effect that it may accept deposits from wholesale depositors only, the fee is calculated as above less 30%.

A.2

Minimum fee ()

525

No. of mortgages

Fee (/mortgage)

0 - 50

51 - 500

4.92

501 - 1,000

1.98

1,001 - 50,000

1.48

50,001 - 500,000

0.51

>500,000

0.11

A.3

Gross premium income (GPI)

Minimum fee ()

430

million of GPI

Fee (/m or part m of GPI)

0 - 0.5

>0.5 - 2

2,134.95

>2 - 5

1,983.75

>5 - 20

1,860.84

>20 - 75

592.39

>75 - 150

519.31

>150

73.20

PLUS

Gross technical liabilities (GTL)

Minimum fee ()

million of GTL

Fee (/m or part m of GTL)

0 - 1

>1 - 5

51.03

>5 - 50

47.30

>50 - 100

43.89

>100 - 1,000

13.83

>1,000

5.54

For UK ISPV's the tariff rates are not relevant and a flat fee of 430 is payable in respect of the period 1 April 2008 to 31 March 2009.

A.4

Adjusted annual gross premium income (AGPI)

Minimum fee ()

215

million of AGPI

Fee (/m or part m of AGPI)

0 - 1

>1 - 50

637.87

>50 - 1,000

594.67

>1,000 - 2,000

408.20

>2,000

280.26

PLUS

Mathematical reserves (MR)

Minimum fee ()

215

million of MR

Fee (/m or part m of MR)

0 - 1

>1 - 10

33.55

>10 - 100

30.71

>100 - 1,000

20.79

>1,000 - 5,000

14.63

>5,000 - 15,000

11.36

>15,000

8.83

For UK ISPV's the tariff rates are not relevant and a flat fee of 430 is payable in respect of the period 1 April 2008 to 31 March 2009.

A.5

Minimum fee ()

580

million of Active Capacity (AC)

Fee (/m or part m of AC)

0 - 50

>50 - 150

114.91

>150 - 250

96.71

>250

28.37

A.6

Flat Fee ()

1,284,725

A.7

For class 1(C), (2) and (3) firms:

Minimum fee ()

1,210

million of Funds under Management (FuM)

Fee (/m or part m of FuM)

0 - 10

>10 - 100

50.28

>100 - 2,500

16.17

>2,500 - 10,000

9.00

>10,000

1.02

For class 1(B) firms: the fee calculated as for class 1(C) firms above, less 15%.
For class 1(A) firms: the fee calculated as for class 1(C) firms above, less 50%.

A.8

This activity group does not apply for this period.

A.9

Minimum fee ()

1,890

million of Gross Income (GI)

Fee (/m or part m of GI)

0 - 1

>1 - 5

842.83

>5 - 15

828.57

>15 - 40

820.36

>40

809.18

A.10

Minimum fee ()

2,310

No. of traders

Fee (/trader)

0 - 2

3 - 5

2,564.00

6 - 10

1,852.00

11 - 50

1,712.00

51 - 200

1,482.00

>200

1,196.00

A.11

This activity group does not apply for this period.

A.12

Minimum fee ()

1,960

No. of persons

Fee (/person)

0 - 1

2 - 4

1,125.00

5 - 10

570.00

11 - 25

418.00

26 - 150

221.00

151 - 1,500

167.00

>1,500

112.00

For a professional firm in A.12 the fee is calculated as above less 10%.

A.13

For class (2) firms:

Minimum fee ()

1,850

No. of persons

Fee (/person)

0 - 1

2 - 4

1,002.00

5 - 10

978.00

11 - 25

939.00

26 - 500

835.00

501 - 4,000

767.00

>4000

724.00

For class (1) firms: 1,850
For a professional firm in A.13 the fee is calculated as above less 10%.

A.14

Minimum fee ()

1,335.00

No. of persons

Fee (/person)

0 - 1

1,258.00

3 - 4

1,194.00

5 - 10

1,098.00

11 - 100

1,042.00

101 - 200

729.00

>200

438.00

A.15

This activity group does not apply for this period.

A.16

This activity group does not apply for this period.

A.17

This activity group does not apply for this period.

A.18

Minimum fee ()

745

thousands of Annual Income (AI)

Fee (/ thousand or part thousand of AI)

0 - 100

>100 - 1,000

5.18

>1,000 - 5,000

4.33

>5,000 - 10,000

3.46

>10,000 - 20,000

2.60

>20,000

2.18

A.19

Minimum fee ()

450

thousands of Annual Income (AI)

Fee (/ thousand or part thousand of AI)

0 - 100

>100 - 1,000

4.31

>1,000 - 5,000

3.77

>5,000 - 15,000

2.60

>15,000 - 100,000

1.04

>100,000

0.42

B. Market operators

20,000

B. Service companies

Bloomberg LP

37,000

EMX Co Ltd

27,000

LIFFE Services Ltd

27,000

[row deleted]

OMGEO Ltd

27,000

Reuters Ltd

37,000

Swapswire Ltd

27,000

Thomson Financial Ltd

27,000

Part 2
This table shows the permitted deductions that apply

Activity group

Nature of deduction

Amount of deduction

A.1

Financial penalties received