FEES 13 Illegal money lending levy

This chapter applies to every person that is in activity group CC1 (Credit-related regulated activities with limited permission) or CC2 (Credit-related regulated activities).

In accordance with GEN 2.3 (General saving of the Handbook for Gibraltar), rules or guidance in FEES 13 that immediately before IP completion day applied in relation to or in connection with Gibraltar will continue to apply after IP completion day. The exceptions to this provision are the fee rates set out in FEES 13 Annex 1R, which may change each fee year.

A firm must pay each IML levy applicable to it:

1. (1)

   in full and without deduction by 1 August (or, if later, within 30 days of the date of the invoice) in the financial year to which the sum relates; and

2. (2)

   in accordance with the rules in this chapter.

Where the FCA grants a person’s application for annulment of a cancellation or variation of Part 4A permission under Schedule 6A to the Act and the person falls within FEES 13.2.1R and the annulment takes effect after 1 August or after the invoice referred to in FEES 13.2.1R(1) has been issued, then that date for payment does not apply, but the person must pay the IML levy applicable to it in full and without deduction, on the date on which the annulment takes effect.

The IML levy is calculated as follows:

1. (1)

   identify whether activity group CC1 or CC2 applies to the business of the firm for the relevant period (for this purpose, the activity groups are defined in accordance with Part 1 of FEES 4 Annex 1AR);

2. (2)

   for each of those activity groups, calculate the amount payable in the way set out in FEES 13.2.4R;

3. (3)

   add the amounts calculated under (2);

4. (4)

   work out whether a minimum fee is payable under Part 2 of FEES 7 Annex 1R and if so how much;

5. (5)

   add together the amounts calculated under (3) and (4);

6. (6)

   modify the result as indicated by the tables in FEES 4.2.7ER (Modifications for persons becoming subject to periodic fees during the course of a fee year), FEES 4.2.7FR (Calculating the fee in the firm’s first year of authorisation), FEES 4.2.7GR (Calculating fees in the second fee-year where the firm received permission between 1 January and 31 March in its first fee-year) and FEES 4.2.7HR to FEES 4.2.7KR (Calculating all other fees in the second and subsequent years of authorisation where a full year of tariff data is not available) (if applicable);

7. (7)

   apply any applicable payment charge specified in FEES 4.2.4R (Method of payment) to the amount in (6), provided that:

   1. (a)

      for payment by direct debit, successful collection of the amount due is made at the first attempt by the FCA; or

   2. (b)

      for payment by credit transfer, the amount due is received by the FCA on or before the due date; and

8. (8)

   make the calculation using information obtained in accordance with FEES 4.4 (Information on which fees are calculated).

The amount payable by a firm with respect to a particular activity group is calculated as follows:

1. (1)

   for a firm in activity group CC1, a £5 flat rate is the amount payable by the firm with respect to that activity group;

2. (2)

   for a firm in activity group CC2:

   1. (a)

      up to and including £250,000 consumer credit income: £10 is the amount payable by the firm with respect to that activity group; and

   2. (b)

      over £250,000 consumer credit income: £10 + £0.202 per £ thousand or part £ thousand of consumer credit income; and

3. (3)

   a firm in activity group CC2 must calculate its tariff base using the annual income calculation in Part 3 of FEES 4 Annex1AR and FEES 4 Annex 11BR and the valuation date requirements in Part 5 of FEES 4 Annex 1AR.

For the purposes of FEES 13.2.4R:

1. (1)

   a firm in activity group CC2 may apply the relevant tariff bases and rates to its non-UK business, as well as to its UK business, if:

   1. (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 FEES 4 Annex 11BR are disproportionate to the difference in fees payable; and

   2. (b)

      it notifies the FCA 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; and

2. (2)

   for a firm which has not complied with FEES 4.4.2R (Information on which fees are calculated) for this period, the IML levy is calculated using (where relevant) the valuation or valuations of business applicable to the previous period multiplied by the factor of 1.10.

The rules set out in the table in FEES 13.2.9R and any other rules in FEES 4 included in FEES 13 by cross-reference apply to the IML levy in the same way as they apply to periodic fees payable under FEES 4.3.1R.