General Provisions

Part

FEES Fees Manual

Chapter

General Provisions

Printed on: 14/11/2024

Rulebook at: 30/06/2015

FEES 2

General Provisions

FEES 2.1

Introduction

01/01/2006

Application

FEES 2.1.1

Except to the extent referred to in FEES 2.1.1A R, this chapter applies to every person who is required to pay a fee or share of a levy to the appropriate regulator, FOS Ltd or FSCS, as the case may be, by a provision of the Handbook.

01/04/2013

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).

01/04/2013

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.

01/04/2013

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 appropriate regulator or a share of the FSCS levy.

01/04/2013

FEES 2.1.5-A

Paragraph 31 of Schedule 1ZB of the Act enables the PRA to charge fees to cover its costs and expenses in carrying out its functions. The corresponding provisions for the FSCS levy are set out in FEES 6.1.

01/04/2013

FEES 2.1.6

The appropriate regulator fees payable will vary from one fee year to another, and will reflect the appropriate regulator'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 appropriate regulator to undertake its statutory functions.

01/04/2013

FEES 2.1.7

The key components of the appropriate regulator 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 appropriate regulator's financial management and reporting framework;
(b) the appropriate regulator'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 appropriate regulator'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 appropriate regulator'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.

01/04/2013

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).

01/04/2013

FEES 2.1.9

By basing fee-blocks on categories of business, the appropriate regulator 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.

01/04/2013

FEES 2.1.9A

PRA-authorised persons and persons seeking to become PRA-authorised persons should note that the FCA and the PRA have agreed for the FCA to act as the PRA's agent in relation to the collection of PRA fees. Where applicable, both PRA and FCA fees should be paid as a single payment to the FCA, which will receive the payment in its own capacity in respect of FCA fees and in its capacity as agent for the PRA in respect of the PRA fees. References to this arrangement will be referred to in FEES where applicable.

01/04/2013

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, FOS levy, 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 Official Bank Rate from time to time in force, accruing on a daily basis from the date on which the amount concerned became due.

01/04/2013

FEES 2.2.2

The FCA, (for FCA and PRA periodic fees, FOS and FSCS levies and CFEB levies), expects to issue invoices at least 30 days before the date on which the relevant amounts fall due. 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.

04/10/2013

Recovery of Fees

FEES 2.2.3

Paragraphs 23(8) of Schedule 1ZA and paragraphs 31(7) of Schedule 1ZB of the Act permit the FCA and PRA respectively to recover fees (including in respect of the FCA, fees relating to payment services, the issuance of electronic money 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 FCA, PRA and FSCS respectively, and the FCA, PRA and FSCS, as relevant, will consider taking action for recovery (including interest) through the civil courts.

[Note: For the PRA version of this guidance, see this provision as it was on 31 March 2015.]

01/04/2015

FEES 2.2.4

In addition, the appropriate regulator may be entitled to take regulatory action in relation to the non-payment of fees, FOS levies and CFEB levies. The appropriate regulator may also take regulatory action in relation to the non-payment of a share of the FSCS levy, after reference of the matter to the appropriate regulator by the FSCS. What action (if any) that is taken by the appropriate regulator will be decided upon in the light of the particular circumstances of the case.

01/04/2013

FEES 2.3

Relieving Provisions

01/01/2006

Remission of Fees and levies

FEES 2.3.1

If it appears to the appropriate regulator or the FSCS (in relation to any FSCS levy 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 appropriate regulator or the FSCS 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.

01/04/2013

FEES 2.3.2

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

01/04/2013

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.

01/04/2013

FEES 2.3.2B

The appropriate regulator 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.

01/04/2013

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.

01/04/2013