FEES 6
Financial Services Compensation Scheme Funding
FEES 6.1
Application
- 01/01/2006
FEES 6.1.1
See Notes
- 01/04/2013
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 the Society rather than individually on each member (see FEES 6.3.24 R).
- 12/06/2014
Purpose
FEES 6.1.3
See Notes
- 01/04/2013
General structure
FEES 6.1.4
See Notes
- 01/04/2013
FEES 6.1.4A
See Notes
- 01/04/2013
FEES 6.1.5
See Notes
- 01/04/2013
FEES 6.1.6
See Notes
- 01/04/2014
FEES 6.1.6A
See Notes
- 01/04/2014
FEES 6.1.7
See Notes
- 04/10/2013
FEES 6.1.8
See Notes
- 01/04/2013
The management expenses levy
FEES 6.1.9
See Notes
- 01/04/2013
FEES 6.1.10
See Notes
- 01/04/2013
FEES 6.1.11
See Notes
- 01/04/2013
FEES 6.1.13
See Notes
- 01/04/2013
The compensation costs levy
FEES 6.1.14
See Notes
- 01/04/2014
FEES 6.1.15
See Notes
Compensation costs are principally the costs incurred in paying compensation. Costs incurred:
- (1) in securing continuity of long-term insurance; or
- (2) in safeguarding eligible claimants when insurers are in financial difficulties; or
- (3) in making payments or giving indemnities under COMP 11.2.3 R; or
- (4) as a result of the FSCS being required by HM Treasury to make payments in connection with the exercise of the stabilisation power under Part 1 of the Banking Act 2009; or
- (5) in paying interest, principal and other costs from borrowing to allow the FSCS to pay claims attributable to a particular class;
are also treated as compensation costs. Compensation costs are attributed to the class which is responsible for the costs. When the FSCS imposes a compensation costs levy the levy is allocated to the class which is responsible for the costs up to relevant levy limits. Certain classes may be funded, for compensation costs levies beyond the class levy limit, by the retail pool.
- 01/04/2013
Participant firms that are members of more than one class
FEES 6.1.16
See Notes
If a participant firm is a member of more than one class, the total compensation costs levy and specific costs levy for that firm in a particular year will be the aggregate of the individual levies calculated for the firm in respect of each of the classes for that year. Each class has a levy limit which is the maximum amount of compensation costs and specific costs which may be allocated to a particular class in a financial year for the purposes of a levy.
- 01/04/2013
Incoming EEA firms
FEES 6.1.17
See Notes
- 01/04/2013
FEES 6.2
Exemption
- 01/01/2006
FEES 6.2.1
See Notes
- 01/04/2013
FEES 6.2.4
See Notes
- 01/04/2013
FEES 6.2.5
See Notes
- 01/04/2013
FEES 6.2.6
See Notes
- 01/04/2013
FEES 6.2.7
See Notes
The financial year of the compensation scheme is the twelve months ending on 31 March. The effect of FEES 6.2.6 R and FEES 6.2.1R (2) is that if a firm fails to notify FSCS of an exemption under FEES 6.2.1 R by 31 March it will be treated as non-exempt for the whole of the next financial year.
- 01/04/2013
FEES 6.2.8
See Notes
- 01/04/2013
FEES 6.3
The FSCS's power to impose levies
- 01/01/2006
Imposing management expenses and compensation costs levies
FEES 6.3.1
See Notes
- 01/04/2014
FEES 6.3.2
See Notes
- 01/04/2013
FEES 6.3.2A
See Notes
- 01/04/2014
FEES 6.3.3
See Notes
- 01/04/2013
FEES 6.3.4
See Notes
- 01/04/2013
Imposing a MERS levy
FEES 6.3.4A
See Notes
- 01/04/2013
Limits on compensation costs and specific costs levies on classes
FEES 6.3.5
See Notes
- 01/04/2013
Levy for compensation costs paid in error
FEES 6.3.10
See Notes
- 01/04/2013
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 classes in accordance with the allocation established under FEES 6.4.6 R and FEES 6.5.2 R.
- 01/04/2013
FEES 6.3.12
See Notes
- 01/04/2013
FEES 6.3.13
See Notes
- 01/04/2013
FEES 6.3.14
See Notes
- 01/04/2013
FEES 6.3.17
See Notes
- 01/04/2013
FEES 6.3.18
See Notes
- 01/04/2013
FEES 6.3.19
See Notes
- 01/04/2013
FEES 6.3.20
See Notes
- (1) Where the FSCS makes recoveries in relation to protected claims where a related compensation costs levy would have been allocated to a class (class A) had the levy limit for class A not been reached and has been allocated to another class or classes in the retail pool, the recoveries must be applied:
- (a) first, to the classes to which the costs levied were allocated in accordance with FEES 6.5A in the same proportion as those classes contributed, up to the total amount of that allocation plus interest at a rate equivalent to the Bank of England's Official Bank Rate from time to time in force; and
- (b) thereafter, to class A.
- (2) This rule applies even though the recovery is made in a subsequent financial year.
- (3) [deleted]
- 01/04/2013
FEES 6.3.20A
See Notes
- 01/04/2013
FEES 6.3.21
See Notes
- 01/04/2013
Adjustments to calculation of levy shares
FEES 6.3.22
See Notes
- 01/04/2013
FEES 6.3.22A
See Notes
- 01/04/2013
FEES 6.3.22B
See Notes
- 01/04/2013
Firms acquiring businesses from other firms
FEES 6.3.22C
See Notes
- 01/04/2013
Remission of levy or additional administrative fee
FEES 6.3.23
See Notes
- 01/04/2013
Levies on the Society of Lloyd's
FEES 6.3.24
See Notes
- 01/04/2013
FEES 6.4
Management expenses
- 01/01/2006
Obligation on participant firm to pay
FEES 6.4.1
See Notes
- 01/04/2013
Limit on management expenses
FEES 6.4.2
See Notes
- 01/04/2013
Participant firm's share
FEES 6.4.3
See Notes
- 01/04/2013
FEES 6.4.4
See Notes
- 01/04/2013
Base costs levy
FEES 6.4.5
See Notes
Subject to FEES 6.3.22 R, 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 and:
- (a) allocating 50% of those base costs as the sum to be levied on participants in activity groups A.1, A.3, A.4, A.5 and A.6 (as listed in FEES 4 Annex 1B); and
- (b) allocating 50% of those base costs as the sum to be levied on participants in all the activity groups listed in FEES 4 Annex 1A;
- (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:
- (a) if the participant firm belongs to any of the activity groups in (1)(a), imposed by the PRA in respect of those groups; and
- (b) if the participant firm belongs to any of the activity groups in (1)(b), imposed by the FCA in respect of those groups; and
- (3) applying the proportion calculated in (2)(a), if any to the sum in (1)(a), and the proportion calculated in (2)(b) (if any) to the sum in (1)(b).
- 01/04/2013
FEES 6.4.5A
See Notes
- 01/04/2013
Specific costs levy
FEES 6.4.6
See Notes
- 01/04/2013
FEES 6.4.7
See Notes
- 04/10/2013
New participant firms
FEES 6.4.8
See Notes
- 01/04/2013
FEES 6.4.10
See Notes
- 01/04/2013
Specific costs levy for newly authorised firms
FEES 6.4.10A
See Notes
- 01/04/2013
Application of FEES 6.4.10AR
FEES 6.4.10B
See Notes
References in this table to dates or months are references to the latest one occurring before the start of the FSCS financial year unless otherwise stated.
Type of permission acquired on 1 November | Tariff base | Valuation date but for FEES 6.5.13BR |
Data period under FEES 6.5.13bR |
Accepting deposits | Protected deposits | As at 31 December 2009 | As at 31 December 2009 |
Effecting contracts of insurance (Insurers - general) |
Relevant net premium income | The firm's tariff base calculated in the year 2009 - so projected valuation will be used. | 1 November to 31 December 2009 |
Dealing in investments as agent in relation to General Insurance Intermediation | Annual eligible income | Financial year ended 31 March 2009 - so projected valuations will be used. | 1 November to 31 December 2009 |
- 01/04/2013
FEES 6.4A
Management expenses in respect of relevant schemes
- 12/10/2010
Obligation on participant firm to pay
FEES 6.4A.1
See Notes
- 01/04/2013
Restriction on management expenses in respect of relevant schemes
FEES 6.4A.2
See Notes
- 01/04/2013
Management expenses in respect of relevant schemes levy
FEES 6.4A.3
See Notes
- 01/04/2013
FEES 6.5
Compensation costs
- 01/01/2006
FEES 6.5.2
See Notes
The FSCS must allocate any compensation costs levy:
- (1) to the relevant classes in proportion to the amount of compensation costs arising from, or expected to arise from, claims in respect of the different activities for which firms in those classes have permission up to the levy limit of each relevant class.
- (2) [deleted]
- 04/10/2013
Allocation: all classes except A, B and C
FEES 6.5.2A
See Notes
- 01/04/2013
FEES 6.5.3
See Notes
- 01/04/2013
FEES 6.5.4
See Notes
- 01/04/2013
FEES 6.5.5
See Notes
- 01/04/2013
FEES 6.5.6
See Notes
- 04/10/2013
Classes and tariff bases for compensation cost levies and specific costs levies
FEES 6.5.7
See Notes
- 01/04/2013
FEES 6.5.8
See Notes
- 01/04/2013
New participant firms
FEES 6.5.9
See Notes
- 01/04/2013
Compensation costs levy for newly authorised firms
FEES 6.5.9A
See Notes
- 01/04/2013
FEES 6.5.9B
See Notes
- 01/04/2013
Membership of several classes
FEES 6.5.12
See Notes
- 01/04/2013
Reporting requirements
FEES 6.5.13
See Notes
- 01/04/2013
FEES 6.5.13A
See Notes
- 01/04/2013
FEES 6.5.14
See Notes
- 01/04/2013
FEES 6.5.15
See Notes
- 01/04/2013
FEES 6.5.16
See Notes
- 01/04/2013
FEES 6.6
Incoming EEA firms
- 01/01/2006
FEES 6.6.1
See Notes
- 01/01/2014
FEES 6.7
Payment of levies
- 01/01/2006
FEES 6.7.1
See Notes
- 01/04/2013
FEES 6.7.2
See Notes
- 01/04/2013
FEES 6.7.3
See Notes
- 01/04/2013
FEES 6.7.4
See Notes
- 01/04/2013
FEES 6.7.5
See Notes
- 01/04/2013
FEES 6.7.6
See Notes
- 01/04/2013
FEES 6 Annex 1
Financial Services Compensation Scheme - Management Expenses Levy Limit
- 01/04/2006
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 |
1 April 2006 to 31 March 2007 | £37,060,000 |
1 April 2007 to 31 March 2008 | £37,520,000 |
1 April 2008 to 31 March 2009 | £1,000,000,000 provided that £600,000,000 may be recovered in respect of specific costs relating to the declaration by the FSA on 27 September 2008 that Bradford & Bingley plc is in default only. |
1 April 2009 to 31 March 2010 | £1,000,000,000 |
1 April 2010 to 31 March 2011 | £1,000,000,000 |
1 April 2011 to 31 March 2012 | £1,000,000,000 |
1 April 2012 to 31 March 2013 | £1,000,000,000 |
1 April 2013 to 31 March 2014 | £94,400,000 |
1 April 2014 to 31 March 2015 | £80,000,000 |
- 01/04/2014
FEES 6 Annex 2
Financial Services Compensation Scheme - annual levy limits
- 06/11/2007
See Notes
Class | Levy Limit (£ million) |
A: Deposits | 1,500 |
B1: General insurance provision | 600 |
B2: General insurance intermediation | 300 |
C1: Life and pensions provision | 690 |
C2: Life and pensions intermediation | 100 |
D1: Investment provision | 200 |
D2: Investment intermediation | 150 |
E2: Home finance intermediation | 40 |
- 01/04/2013
FEES 6 Annex 3
Financial Services Compensation Scheme - classes and sub-classes
- 06/11/2007
See Notes
Class A | Deposit |
Legal basis for activity in class A | accepting deposits. and/or operating a dormant account fund. BUT does not include any fee payer who either effects or carries out contracts of insurance. |
Tariff base | (1) Protected deposits and/or (2) Protected dormant accounts multiplied by 0.2 as at 31 December Except where paragraph (4) says otherwise, protected deposits must be adjusted as follows. |
(1) Only include a protected deposit to the extent that an eligible claimant would have a claim in respect of it. | |
(2) Exclude any amount in respect of which the FSCS would not pay compensation due to the maximum payment limits in COMP 10.2. | |
(3) The tariff base calculation is made on the basis of the information that the firm would have to include in the single customer views it has to be able to produce under COMP 17 (Systems requirements for firms that accept deposits). The information must be of the extent and standard required if the firm was preparing the single customer views as at the valuation date for the tariff base (31 December). | |
(4) (a) If this paragraph applies, the adjustments in (1) to (3) do not apply and the calculation is based on protected deposits. | |
(b) This paragraph applies with respect to a protected deposit to the extent that, under COMP 17, the firm does not have to identify an eligible claimant with respect to that protected deposit because the account is held by the account holder on behalf of others. (c) This paragraph applies with respect to a protected deposit that has been excluded from the single customer view because it is an account that is not active, as defined in COMP 17.2.3R (2). |
Class B | General Insurance |
Sub-class B1 | General Insurance Provision |
Legal basis for activity in sub-class B1 |
effecting contracts of insurance; and/or
|
that are general insurance contracts. | |
Sub-class B2 | General Insurance Intermediation |
Legal basis for activity in sub-class B2 | Any of the following in respect of general insurance contracts: |
agreeing to carry on a regulated activity which is within any of the above.
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Tariff base | Sub-class B1: Relevant net premium income and eligible gross technical liabilities. The levy is split into two in the ratio 75:25. The tariff base for the first portion (75%) is calculated by reference to relevant net premium income. The tariff base for the second portion (25%) is based on eligible gross technical liabilities. Eligible gross technical liabilities are calculated in accordance with the method for calculating gross technical liabilities in fee block A3 in part 2 of FEES 4 Annex 1 with the following adjustments. (1) Eligible gross technical liabilities are calculated by reference to protected contracts of insurance with eligible claimants. (2) A firm may choose not to apply paragraph (1) and instead include all gross technical liabilities that it would be obliged to take into account for fee block A3 as long as the amount that it would include under (1) is lower. (3) If an incoming EEA firm does not report gross technical liabilities in the way contemplated by this table, the firm's gross technical liabilities are calculated in the same way as they would be for a UK firm. (4) None of the notes for the calculation of fees in fee block A3 in part 2 of FEES 4 Annex 1 apply except for the purposes of (2). (5) A directive friendly society must also calculate eligible gross technical liabilities in accordance with this table. (6) A non-directive friendly society must calculate gross technical liabilities as the amount that it is required to show in FSC 2 - Form 9 line 11 in Appendix 10 of IPRU(FSOC) (assets allocated towards the general insurance business required minimum margin) in relation to the most recent financial year of the firm (as at the applicable reporting date under FEES 6.5.13 R) for which the firm is required to have reported that information to the FSA under IPRU(FSOC). A non-directive friendly society must disregard for this purpose such amounts as are not required to be included by reason of a waiver or a written concession carried forward as an amendment to the rule to which it relates under SUP TP. |
Sub-class B2: annual eligible income where annual eligible income means annual income adjusted in accordance with this table. Annual income is calculated as the sum of (a) and (b): (a) the net amount retained by the firm of all brokerages, fees, commissions and other related income (for example, administration charges, overriders and profit shares) due to the firm in respect of or in relation to sub-class B2 activities, including any income received from an insurer; and (b) if the firm is an insurer, in relation to sub-class B2 activities, the amount of premiums receivable on its contracts of insurance multiplied by 0.07, excluding those contracts of insurance which result from sub-class B2 activities carried out by another firm, where a payment has been made by the insurer to that other firm and that payment is of a type that falls under (a). Notes relating to the calculation of the tariff base for sub-class B2: (1) Exclude annual income for pure protection contracts. Only include general insurance contracts. (2) The calculation is adjusted in accordance with the definition of annual eligible income. (3) Net amount retained means all the commission, fees, etc. in respect of sub-class B2 activities 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 (for example, employees' salaries and overheads) must not be deducted. (4) Sub-class B2 activities mean activities that fall within sub-class B2. They also include activities that now fall within sub-class B2 but that were not regulated activities when they were carried out. (5) A reference to a firm also includes a reference to any person who carried out activities that would now fall into sub-class B2 but which were not at the time regulated activities. |
Class C | Life and Pensions |
Sub-class C1 | Life and Pensions Provision |
Legal basis for activity in sub-class C1 |
effecting contracts of insurance; and/or
|
that are long-term insurance contract (including pure protection contracts). | |
Sub-class C2 | Life and Pensions Intermediation |
Legal basis for activity in sub-class C2 | Any of the following: |
agreeing to carry on a regulated activity which is within any of the above;
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in relation to any of the following: | |
long-term insurance contracts (including pure protection contracts);
|
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rights under a stakeholder pension scheme or a personal pension scheme.
|
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Tariff base | Sub-class C1: Relevant net premium income and eligible mathematical reserves. The levy is split into two in the ratio 75:25. The tariff base for the first portion (75%) is calculated by reference to relevant net premium income. The tariff base for the second portion (25%) is based on mathematical reserves. Eligible mathematical reserves are calculated in accordance with the method for calculating mathematical reserves in fee block A4 in part 2 of FEES 4 Annex 1 with the following adjustments. (1) Eligible mathematical reserves are calculated by reference to protected contracts of insurance with eligible claimants. (2) A firm may choose not to apply paragraph (1) and instead include all mathematical reserves that it would be obliged to take into account for fee block A4 as long as the amount that it would include under (1) is lower. (3) If an incoming EEA firm does not report mathematical reserves in the way contemplated by this table, the firm's mathematical reserves are calculated in the same way as they would be for a UK firm. (4) None of the notes for the calculation of fees in fee block A4 in part 2 of FEES 4 Annex 1 apply except for the purposes of (2). (5) A directive friendly society must also calculate eligible mathematical reserves in accordance with this table. (6) A non-directive friendly society must calculate mathematical reserves as the amount that it is required to show in FSC 2 - Form 9 line 23 in Appendix 10 of IPRU(FSOC) (total mathematical reserves after distribution of surplus) in relation to the most recent financial year of the firm (as at the applicable reporting date under FEES 6.5.13 R) for which the firm is required to have reported that information to the FSA under IPRU(FSOC). A non-directive friendly society must disregard for this purpose such amounts as are not required to be included by reason of a waiver or a written concession carried forward as an amendment to the rule to which it relates under SUP TP. (7) The provisions relating to pension fund management business in Part 2 of FEES 4 Annex 1 do not apply. A firm undertaking such business that does not carry out any other activities within sub-class C1 (ignoring any activities that would have a wholly insignificant effect on the calculation of its tariff base for sub-class C1) must use its Long-term insurance capital requirement instead of gross technical liabilities. The Long-term insurance capital requirement means the amount that it is required to show as its Long-term insurance capital requirement in Form 2 Line 31 (Statement of solvency - Long-term insurance business) in relation to the most recent financial year of the firm (as at the applicable reporting date under FEES 6.5.13 R) for which the firm is required to have reported that information to the FSA. (8) The split in the levy between relevant net premium income and eligible mathematical reserves does not apply to a partnership pension society (as defined in Chapter 7 of IPRU(FSOC) (Definitions)). Instead the levy is only calculated by reference to relevant net premium income. |
Sub-class C2: annual eligible income where annual eligible income means annual income adjusted in accordance with this table. Annual income is calculated as the sum of (a) and (b): (a) the net amount retained by the firm of all brokerages, fees, commissions and other related income (for example, administration charges, overriders and profit shares) due to the firm in respect of or in relation to sub-class C2 activities including any income received from an insurer; and; (b) if the firm is a life and pensions firm, in relation to sub-class C2 activities, the amount of premiums or commission receivable on its life and pensions contracts multiplied by 0.07, excluding those life and pensions contracts which result from sub-class C2 activities carried out by another firm, where a payment has been made by the life and pensions firm to that other firm and that payment is of a type that falls under (a). Notes relating to the calculation of the tariff base for sub-class C2: (1) Life and pensions contracts mean long-term insurance contracts (including pure protection contracts) and rights under a stakeholder pension scheme or a personal pension scheme. (2) Life and pensions firm means an insurer. It also means a firm that provides stakeholder pension schemes or personal pension schemes if those activities fall into sub-class D1. (3) The calculation is adjusted in accordance with the definition of annual eligible income. (4) Net amount retained means all the commission, fees, etc. in respect of sub-class C2 activities 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 (for example, employees' salaries and overheads) must not be deducted. (5) Sub-class C2 activities mean activities that fall within sub-class C2. They also include activities that now fall within sub-class C2 but that were not regulated activities when they were carried out. (6) A reference to a firm also includes a reference to any person who carried out activities that would now fall into sub-class C2 but which were not at the time regulated activities. |
Class D | Investment |
Sub-class D1 | Fund Management |
Legal basis for activity in sub-class D1 | Any of the following: |
agreeing to carry on a regulated activity which is within any of the above.
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Sub-class D2 | Investment Intermediation |
Legal basis for activity in sub-class D2 | Any of the following activities in relation to designated investment business |
agreeing to carry on a regulated activity which is within any of the above;
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BUT excluding activities that relate to long-term insurance contracts or rights under a stakeholder pension scheme or a personal pension scheme. | |
Tariff base | Sub-class D1: annual eligible income where annual eligible income means annual income adjusted in accordance with this table. Annual income is equal to the net amount retained by the firm of all income due to the firm in respect of or in relation to activities falling within sub-class D1. |
Sub-class D2: annual eligible income where annual eligible income means annual income adjusted in accordance with this table. Annual income is equal to the net amount retained by the firm of all income due to the firm in respect of or in relation to activities falling within sub-class D2. | |
Notes on annual eligible income for sub-classes D1 and D2: | |
(1) For the purposes of calculating annual income, net amount retained means all the commission, fees, etc. in respect of activities falling within sub-class D1 or D2, as the case may be, 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 (for example employees' salaries and overheads) must not be deducted. |
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(2) The calculation is adjusted in accordance with the definition of annual eligible income. | |
(3) Box management profits are excluded from the calculation of annual income. |
Class E | Home Finance |
Sub-class E1 | Home Finance Provision |
Legal basis for activity in sub-class E1 | Any of the activities below: |
agreeing to carry on a regulated activity which is within any of the above.
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Sub-class E2 | Home Finance Intermediation |
Legal basis for activity in sub-class E2 | Any of the following activities: |
the activities of a home finance provider which would be arranging but for article 28A of the Regulated Activities Order (Arranging contracts or plans to which the arranger is party);
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agreeing to carry on a regulated activity which is within any of the above.
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Tariff base | Sub-class E1: FSA periodic fees |
Sub-class: E2: annual eligible income where the annual income is calculated in accordance with fee-block A18 in part 2 of FEES 4 Annex 1 |
Notes | |
(1) | Any reference in this annex to a specified investment includes a reference to rights to or interests in investments in that specified investment. |
(2) | In calculating annual eligible income a firm must apportion income between different sub-classes and between income that falls within the definition of annual eligible income and income that does not in a reasonable and consistent way and on the basis of clear policies. |
(3) | The question of whether a person is an eligible claimant or not or whether a contract of insurance is a protected contract or not or whether business is compensatable business or not must be judged at whichever of the following dates the firm chooses: (a) (for a person who has become a new client during the period by reference to which the firm's tariff base is being calculated) the date on which the person becomes a client; (b) (for a person who has ceased to be a client during that period) the date on which the person ceases to be a client; or (c) (in any other case) the date to which the most recent information supplied by the firm under FEES 6.5.13 R is prepared. However this does not apply for the purpose of calculating the tariff base for class A (Deposits) so far as it relates to protected deposits. |
- 27/07/2012
FEES 6 Annex 4
Guidance on the calculation of tariff bases
- 06/11/2007
See Notes
Gross technical liabilities and mathematical reserves for non-directive friendly societies | |||
5.1 | G | The tariff base for a non-directive friendly society carrying out general insurance business is based in part on gross technical liabilities and the tariff base for a non-directive friendly society carrying out life insurance business is based in part on mathematical reserves. These concepts do not directly apply to non-directive friendly societies and so the tariff base calculation uses a corresponding concept. | |
5.2 | G | The figures for gross technical liabilities and mathematical reserves of a non-directive friendly society for the purpose of calculating its tariff base in class B1 (General Insurance Provision) and C1 (Life and Pensions Provision) are based on a valuation. This valuation only has to be made every three years. FEES 6 does not require a non-directive friendly society to update that information every year. Instead the figures from a non-directive friendly society's valuation will be used on a rolling three year basis for the purposes of the levy calculations in FEES 6. The effect of this calculation is therefore to modify the normal basis on which information is supplied under FEES 6.5.13 R. |
- 01/04/2013