General Provisions

Part

FEES Fees Manual

Chapter

General Provisions

Printed on: 25/11/2024

Rulebook at: 12/10/2010

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 the FSA, case fees to the FOS Ltd or a share of the FSCS levy.

01/06/2010

FEES 2.1.5

Paragraph 17 of Schedule 1 to and section 99 of the Act and regulation 92 of the Payment Services Regulations enable the FSA to charge fees to cover its costs and expenses in carrying out its functions. The corresponding provisions for the FSCS levy, FOS levies and case fees and CFEB levies are set out in FEES 6.1, FEES 5.2 and FEES 7.1.4 G respectively. Fee-paying payment service providers are not required to pay the FSCS levy but are liable for FOS levies.

01/06/2010

FEES 2.1.5A

Regulation 92 of the Payment Services Regulations provides that the functions of the FSA under the regulations are treated for the purposes of paragraph 17 of Schedule 1 to the Act as functions conferred on the FSA under the Act. Paragraphs 17(2) and (3) however, have not been included by the Payment Services Regulations. These are, respectively, the FSA obligation to ensure that the amount of penalties received or expected to be received are not to be taken into account in determining the amount of any fee payable and the provision that allows fees to be raised to repay borrowed monies in respect of expenses incurred, before or after the coming into force of the Act or the Bank of England Act 1998.

01/05/2009

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, the FOS levy and case fees, and the CFEB levy which are dealt with in FEES 5, FEES 6 and FEES 7) 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.

01/06/2010

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 2.1.11

Whilst paragraph 17(2) of Schedule 1 to the Act has not been applied to the fee-raising power of the FSA under the Payment Services Regulations, regulation 92(2) of these regulations requires the FSA to apply amounts paid to it by way of penalties imposed under the regulations towards expenses incurred in carrying out its functions under the regulations, or for any incidental purpose.

01/05/2009

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 or CFEB levy, before the end of the date on which it is due, under the relevant provision in FEES 4, 5, 6 or 7, 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.

01/06/2010

FEES 2.2.2

The FSA, (for periodic fees, FOS and FSCS levies and CFEB levies), and the 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.

01/06/2010

Recovery of Fees

FEES 2.2.3

Paragraph 17(4) and paragraph 19B of Schedule 1 to and section 99(5) of the Act permit the FSA to recover fees (including fees relating to payment services and, where relevant, FOS levies and CFEB 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 the 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).

01/06/2010

FEES 2.2.4

In addition, the FSA may be entitled to take regulatory action in relation to the non-payment of fees, FOS levies and CFEB levies. The 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 the FSA by the FOS Ltd or the 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.

01/06/2010

FEES 2.3

Relieving Provisions

01/01/2006

Remission of Fees and levies

FEES 2.3.1

If it appears to the FSA, the FSCS (in relation to any FSCS levy only) or the FOS Ltd (in relation to any FOS case fee only), that in the exceptional circumstances of a particular case, the payment of any fee, FSCS levy, FOS levy or CFEB levy would be inequitable, the FSA, the FSCS or the 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.

01/06/2010

FEES 2.3.2

If it appears to the FSA, the FSCS (in relation to any FSCS levy only) or the FOS Ltd (in relation to any FOS case fee only), that in the exceptional circumstances of a particular case to which FEES 2.3.1R does not apply, the retention by the FSA, the FSCS, the FOS Ltd or the CFEB, as relevant, of a fee, FSCS levy, FOS levy or CFEB levy which has been paid would be inequitable, the FSA, the FSCS, the FOS Ltd or the CFEB, may (unless FEES 2.3.2B R applies) refund all or part of that fee or levy.

01/06/2010

FEES 2.3.2A

A poor estimate or forecast by a fee or levy 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 or levy payer may give rise to such a claim.

01/11/2008

FEES 2.3.2B

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

01/11/2008

FEES 2.4

VAT

01/04/2009

FEES 2.4.1

All fees payable or any stated hourly rate under FEES 3 (Application, notification and vetting fees), FEES 4 (Periodic fees) and FEES 7 (The CFEB levy) are stated net of VAT. Where VAT is applicable this must also be included.

01/06/2010