FEES 6
Financial Services Compensation Scheme Funding
FEES 6.1
Application
- 01/01/2006
FEES 6.1.1
See Notes
- 01/01/2006
FEES 6.1.2
See Notes
(1) Firms which are not participant firms (such as certain types of incoming EEA firms, service companies and ICVCs) are not required to contribute towards the funding of the compensation scheme.
(2) Although a member is a participant firm for the purposes of most provisions of COMP, a member is excluded from the definition of participant firm for the purposes of FEES 6 (see definition of participant firm in Glossary). This is because the fees levied in relation to the carrying on of insurance market activities by members will be imposed on Society rather than individually on each member (see FEES 6.3.24 R).
- 01/01/2006
Purpose
FEES 6.1.3
See Notes
- 01/01/2006
General structure
FEES 6.1.4
See Notes
- 01/01/2006
FEES 6.1.5
See Notes
- 01/01/2006
FEES 6.1.6
See Notes
- 01/01/2006
FEES 6.1.7
See Notes
- 01/01/2006
FEES 6.1.8
See Notes
- 01/01/2006
The management expenses levy
FEES 6.1.9
See Notes
- 01/01/2006
FEES 6.1.10
See Notes
- 01/01/2006
FEES 6.1.11
See Notes
- 01/01/2006
FEES 6.1.12
See Notes
- 01/01/2006
FEES 6.1.13
See Notes
- 01/01/2006
The compensation costs levy
FEES 6.1.14
See Notes
- 01/01/2006
FEES 6.1.15
See Notes
- 01/01/2006
FEES 6.1.16
See Notes
If a participant firm is a member of more than one contribution group, the total compensation costs levy and specific costs levy for that firm will be the aggregate of the individual levies calculated for the firm in respect of each of the contribution groups.
- 01/01/2006
Incoming EEA firms
FEES 6.1.17
See Notes
- 01/01/2006
FEES 6.2
Exemption
- 01/01/2006
FEES 6.2.1
See Notes
- 01/01/2006
FEES 6.2.2
See Notes
- 01/01/2006
FEES 6.2.3
See Notes
- 01/01/2006
FEES 6.2.4
See Notes
- 01/01/2006
FEES 6.2.5
See Notes
- 01/01/2006
FEES 6.2.6
See Notes
- 01/01/2006
FEES 6.2.7
See Notes
The financial year of the compensation scheme is the twelve months ending on 31 March.
- 01/01/2006
FEES 6.3
The FSCS's power to impose levies
- 01/01/2006
General limits on levies
FEES 6.3.1
See Notes
- 01/01/2006
FEES 6.3.2
See Notes
- 01/01/2006
FEES 6.3.3
See Notes
- 01/01/2006
FEES 6.3.4
See Notes
- 01/01/2006
Limits on compensation costs levies on sub-schemes
FEES 6.3.5
See Notes
The FSCS must not require a participant firm in the accepting deposits sub-scheme to pay a share of a compensation costs levy allocated to that sub-scheme to the extent that:
(1) the share in question; plus
(2) all previous amounts paid by the firm either as its share of levies allocated to that sub-scheme, or under the Deposit Protection Scheme (deducting from those amounts any amount refunded under FEES 6.3.20 R to FEES 6.3.21 R or by the Deposit Protection Scheme);
amounts to more than 0.3% of the firm's protected deposits.
- 01/01/2006
FEES 6.3.6
See Notes
- 01/01/2006
FEES 6.3.7
See Notes
- 01/01/2006
FEES 6.3.8
See Notes
The FSCS must not require a participant firm in the mortgage advice and arranging sub-scheme to pay a share of a compensation costs levy allocated to that sub-scheme in any financial year of the compensation scheme, to the extent that:
(1) the share in question; plus
(2) all previous amounts paid by the firm as its share of compensation costs levies allocated to that sub-scheme in that financial year;
amounts to more than 0.8% of the participant firm's annual eligible income.
- 01/01/2006
FEES 6.3.9
See Notes
- 01/01/2006
Levy for compensation costs paid in error
FEES 6.3.10
See Notes
- 01/01/2006
Management of funds
FEES 6.3.11
See Notes
The FSCS must hold any amount collected from a specific costs levy or compensation costs levy to the credit of the sub-schemes and relevant contribution groups, in accordance with the allocation established under FEES 6.4.6 R and FEES 6.5.2 R.
- 01/01/2006
FEES 6.3.12
See Notes
- 01/01/2006
FEES 6.3.13
See Notes
- 01/01/2006
FEES 6.3.14
See Notes
- 01/01/2006
FEES 6.3.15
See Notes
The FSCS may use the money collected from firms within one sub-scheme to pay compensation costs in respect of any contribution group within that sub-scheme, so long as it ensures that this is done without prejudice to the participant firms from whom the money has been collected.
- 01/01/2006
FEES 6.3.16
See Notes
- 01/01/2006
FEES 6.3.17
See Notes
- 01/01/2006
FEES 6.3.18
See Notes
- 01/01/2006
FEES 6.3.19
See Notes
- 01/01/2006
FEES 6.3.20
See Notes
If the FSCS makes recoveries in relation to protected claims where the related compensation costs were allocated to the accepting deposits sub-scheme, or in relation to compensation paid out of a special contribution under the Deposit Protection Scheme, and if the FSCS refunds the recoveries under FEES 6.3.21 R, it must ensure that, as far as possible, the recoveries are refunded to the firms that contributed to the relevant compensation costs levy or special contribution (whether or not the firms are participant firms at the time that the recoveries are made).
- 01/01/2006
FEES 6.3.21
See Notes
If the FSCS has more funds to the credit of a contribution group than the FSCS believes will be required to meet levies on that contribution group for the next 12 months, it may refund the surplus to members or former members of the contribution group on any reasonable basis.
- 01/01/2006
Adjustments to calculation of levy shares
FEES 6.3.22
See Notes
- 01/01/2006
Remission of levy or additional administrative fee
FEES 6.3.23
See Notes
- 01/01/2006
Levies on the Society of Lloyd's
FEES 6.3.24
See Notes
- 01/01/2006
FEES 6.4
Management expenses
- 01/01/2006
Obligation on participant firm to pay
FEES 6.4.1
See Notes
- 01/01/2006
Limit on management expenses
FEES 6.4.2
See Notes
- 01/01/2006
Participant firm's share
FEES 6.4.3
See Notes
- 01/01/2006
FEES 6.4.4
See Notes
- 01/01/2006
Base costs levy
FEES 6.4.5
See Notes
Unless FEES 6.3.22 R applies, the FSCS must calculate a participant firm's share of a base costs levy by:
- (1) identifying the base costs which the FSCS has incurred, or expects to incur, in the relevant financial year of the compensation scheme, but has not yet levied;
- (2) calculating the amount of the participant firm's regulatory costs as a proportion of the total regulatory costs relating to all participant firms for the relevant financial year; and
- (3) applying the proportion calculated in (2) to the figure in (1).
- 01/01/2006
Specific costs levy
FEES 6.4.6
See Notes
- 01/01/2006
FEES 6.4.7
See Notes
- 01/01/2006
New participant firms
FEES 6.4.8
See Notes
- 01/01/2006
FEES 6.4.9
See Notes
- 01/01/2006
FEES 6.4.10
See Notes
- 01/01/2006
FEES 6.4.11
See Notes
- 01/01/2006
FEES 6.4.12
See Notes
- 01/01/2006
FEES 6.5
Compensation costs
- 01/01/2006
FEES 6.5.1
See Notes
- 01/01/2006
FEES 6.5.2
See Notes
- (1) The FSCS must (subject to (2)) allocate any compensation costs levy to the individual sub-schemes and relevant contribution groups in proportion to the volume of compensation costs arising from, or expected to arise from, claims in respect of the different activities represented by those contribution groups.
- (2) The FSCS must allocate any part of a compensation costs levy that relates to IFA pensions review claims in accordance with FEES 6.5.17 R (IFA pensions review compensation levies).
- 01/01/2006
FEES 6.5.3
See Notes
- 01/01/2006
FEES 6.5.4
See Notes
- 01/01/2006
FEES 6.5.5
See Notes
- 01/01/2006
FEES 6.5.6
See Notes
- 01/01/2006
FEES 6.5.7
See Notes
- 01/01/2006
FEES 6.5.8
See Notes
Contribution Groups for the Accepting Deposits Sub-scheme and the Insurance Business Sub-scheme for the Financial Services Compensation Scheme (see FEES 6.5.7R (1))
SUB-SCHEME | CONTRIBUTION GROUP (references to A1, A2 etc are to the FSA fee Blocks) | LEGAL BASIS FOR ACTIVITY (references to articles are to articles of the Regulated Activities Order) | TARIFF BASE |
Accepting deposits | A1 - deposit takers | Accepting deposits (article 5) | Protected deposits (see FEES 6.5.15 R) |
Insurance business | A3 - Insurance activities - General insurance | Effecting contracts of insurance and/or carrying out contracts of insurance (article 10) that are general insurance contracts | Relevant net premium income |
Insurance business | A4 - insurance activities - Life Insurance | Effecting contracts of insurance and/or carrying out contracts of insurance (article 10) that are long-term insurance contracts | Relevant net premium income |
- 01/01/2006
FEES 6.5.9
See Notes
The contribution groups and tariff bases for the investment business sub-scheme (see FEES 6.5.7R (2)). (The contribution groups, legal bases for activity and tariff bases are the same as the correspondingly numbered activity groups and tariff bases set out in part1 and part2 of FEES 4 Ann 1R.)
SUB-SCHEME | CONTRIBUTION GROUP (references to A7 etc are to the activity groups in part 1 of FEES 4 Ann 1R) | LEGAL BASIS FOR ACTIVITY (this is merely a summary of the basis in part 1 of FEES 4 Ann 1R; references to articles are to articles of the Regulated Activities Order) | TARIFF BASE (this is merely a summary of the base in part 2 of FEES 4 Ann 1R) |
Designated investment business | A7 - fund managers | Managing investments (article 37) | Funds under management |
Designated investment business | A9 - managers of an AUT, ACDs and depositaries | Any of the following: (a) establishing, operating or winding up a collective investment scheme; (b) acting as a trustee of an authorised unit trust scheme; (c) acting as a depositary, or sole director of an open-ended investment company (article 51) | Gross income |
Designated investment business | A10 - dealing as principal | Dealing in investments as principal (article 14). | Number of traders |
Designated investment business | A12 - advisory brokers (excluding corporate finance advisers) - holding either client money or assets | Any of the following: (a) dealing in investments as agent (article 21); (b) arranging (bringing about) deals in investments (article 25(1)); (c) making arrangements with a view to transactions in investments (article 25(2)); with permission to: (i) advise on investments (article 53); (ii) hold client money; and (iii) safeguarding and administering investments (article 40) | Number of approved persons |
Designated investment business | A13 - advisory brokers (excluding corporate finance adviser) - not holding either client money or assets | Any of the following: (a) dealing in investments as agent (article 21); (b) arranging (bringing about) deals in investments (article 25(1)); (c) making arrangements with a view to transactions in investments (article 25(2)); with permission to advise on investments (article 53); but not to (i) hold client money; and (ii) safeguard and administer investments (article 40). | Number of approved persons |
Designated investment business | A14 - corporate finance advisory firms | Permission includes a requirement that the firm must not conduct designated investment business other than corporate finance business | Number of approved persons |
- 01/01/2006
FEES 6.5.10
See Notes
The contribution groups and tariff bases for the mortgage advisers and arrangers (see FEES 6.5.7R (4)
SUB-SCHEME | CONTRIBUTION GROUP (REFERENCES TO A1, A2 ETC ARE TO THE FSA FEE BLOCKS) | LEGAL BASIS FOR ACTIVITY (references to articles are to articles of the Regulated Activities Order) | TARIFF BASE |
Mortgage advice and arranging | A18 - Mortgage lenders, advisers and arrangers | Any of the following: (a) arranging (bringing about) regulated mortgage contracts; (b) making arrangements with a view to regulated mortgage contracts; (c) advising on regulated mortgage contracts; (d) agreeing to carry on a regulated activity which is within any of the above; and (e) the activities of a mortgage lender which would be arranging but for article 28A of the Regulated Activities Order (Arranging contracts to which the arranger is a party). | annual eligible income |
- 01/01/2006
FEES 6.5.11
See Notes
The contribution groups and tariff bases for the general insurance intermediaries (see FEES 6.5.7R (5))
SUB-SCHEME | CONTRIBUTION GROUP (REFERENCES TO A1, A2 ETC ARE TO THE FSA FEE BLOCKS) | LEGAL BASIS FOR ACTIVITY (references to articles are to articles of the Regulated Activities Order) | TARIFF BASE |
General insurance mediation | A.19 General insurance mediation | Any of the following in relation to a non-investment insurance contract: (a) dealing in investments as agent; (b) arranging (bringing about) deals in investments; (c) making arrangements with a view to transactions in investments; (d) assisting in the administration and performance of a contract of insurance; (e) advising on investments; and (f) agreeing to carry on a regulated activity which is within any of the above | annual eligible income |
- 01/01/2006
FEES 6.5.12
See Notes
- 01/01/2006
FEES 6.5.13
See Notes
- 01/01/2006
FEES 6.5.14
See Notes
- 01/01/2006
FEES 6.5.15
See Notes
- 01/01/2006
FEES 6.5.16
See Notes
- 01/01/2006
IFA pensions review compensation levies
FEES 6.5.17
See Notes
- 01/01/2006
FEES 6.6
Incoming EEA firms
- 01/01/2006
FEES 6.6.1
See Notes
- 01/01/2006
FEES 6.7
Payment of levies
- 01/01/2006
FEES 6.7.1
See Notes
- 01/01/2006
FEES 6.7.2
See Notes
- 01/01/2006
FEES 6.7.3
See Notes
- 01/01/2006
FEES 6.7.4
See Notes
- 01/01/2006
FEES 6.7.5
See Notes
- 01/01/2006
FEES 6.7.6
See Notes
- 01/01/2006
FEES 6 Annex 1
Management Expenses Levy Limit
- 01/01/2006
See Notes
This table belongs to FEES 6.4.2 R | |
Period | Limit on total of all management expenses levies attributable to that period (£) |
1 December 2001 to 1 April 2002 | £4,209,000 |
1 April 2002 to 31 March 2003 | £13,228,000 |
1 April 2003 to 31 March 2004 | £13,319,000 |
1 April 2004 to 31 March 2005 | £17,590,000 |
1 April 2005 to 31 March 2006 | £27,030,000 |
- 01/01/2006