FEES 4.3 Periodic fee payable by firms (other than AIFM qualifiers, ICVCs and UCITS qualifiers)

The periodic fee payable by a firm (except an AIFM qualifier, ICVC or a UCITS qualifier) is:

1. (1)

   each periodic fee applicable to it calculated in accordance with FEES 4.3.3 R, using information obtained in accordance with FEES 4.4; plus

2. (1A)

   any periodic fee applicable to it calculated in accordance with FEES 4.3.3A R using information relating to its UK business obtained in accordance with FEES 4.4 (or by other means in the case of the Bank of England); less

3. (2)

   any deductions from the periodic fee specified in Part 2 of FEES 4 Annex 2AR or Part 7 of FEES 4 Annex 11R.

The periodic fee referred to in FEES 4.3.1 R is (except in relation to the Society, fee-paying payment service providers, CBTL firms, fee-paying electronic money issuers and data reporting services providers) calculated as follows:

1. (1)

   identify each of the tariffs set out in Part 1 of FEES 4 Annex 2AR which apply to the business of the firm for the period specified in that annex;

2. (2)

   for each of the applicable tariffs, calculate the sum payable in relation to the business of the firm for that period;

3. (3)

   add together the amounts calculated under (2);

4. (4)

   work out whether an A.0, or, CC.0 minimum fee is payable under Part 2 of FEES 4 Annex 2AR and if so how much (except that that minimum fee is not payable again by a firm whose permission is extended if the fee was already payable before the extension);

5. (4A)

   work out whether an AP.0 FCA prudential fee is payable under Part 2 of FEES 4 Annex 2AR and if so how much;

6. (4B)

   [deleted]

7. (5)

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

8. (6)

   apply any applicable payment charge specified in FEES 4.2.4 R, provided that:

   1. (a)

      for payment by direct debit, successful collection of the amount due is made at the first attempt by the FCA (in its own capacity and, if applicable, in its capacity as collection agent for the PRA); or

   2. (b)

      for payment by credit transfer, the amount due is received by the FCA (in its own capacity and, if applicable, in its capacity as collection agent for the PRA) on or before the due date.

   [Note: Transitional provisions apply to FEES 4.3.3R for firms in activity groups A.3 and A.4 – see FEES TP 13]

The periodic fee referred to in FEES 4.3.1 R in relation to fee-paying payment service providers, CBTL firms, data reporting services providers and fee-paying electronic money issuers is calculated in accordance with FEES 4 Annex 11 R.

The periodic fee referred to in FEES 4.3.1 R in relation to the Society is specified against its name in FEES 4 Annex 2AR.

1. (1)

   [deleted]

2. (1A)

   [deleted]

3. (1B)

   [deleted]

4. (1C)

   If a person meets either of the conditions in (1D) it must pay the FCA the fee in (1E).

5. (1D)

   A person meets the conditions referred to in (1C) if:

   1. (a)

      its periodic fee for the previous fee year was at least £50,000 and it is:

      1. (i)

         an FCA-authorised person; or

      2. (ii)

         a designated professional body; or

      3. (iii)

         a recognised investment exchange; or

      4. (iv)

         a regulated covered bond issuer; or

   2. (b)

      it is a PRA-authorised person and its combined FCA and PRA periodic fees for the previous fee year were at least £50,000.

6. (1E)

   The fee in (1C) is:

   1. (a)

      an amount equal to 50% of the FCA periodic fee payable for the previous fee year by:

      1. (i)

         1 April; or

      2. (ii)

         if later, within 30 days of the date of the invoice, in the fee year to which the sum due under FEES 4.2.1R relates; and

   2. (b)

      the balance of the FCA periodic fee due for the current fee year by:

      1. (i)

         1 September; or

      2. (ii)

         if later, within 30 days of the date of the invoice, in the fee year to which that sum relates.

   [Note: If the firm is a PRA-authorised person that meets the condition at FEES 4.3.6R(1)(D)(b), the firm will also pay its PRA periodic fees in two tranches as specified in the Fees Part of the PRA Rulebook. The FCA, acting as the PRA’s collection agent, will collect these fees.]

7. (2)

   If the firm's, designated professional body's, recognised investment exchange's, or regulated covered bond issuer's periodic fee for the previous fee year was less than £50,000, it must pay the periodic fee due in full by 1 August or, if later, within 30 days of the date of the invoice in the fee year to which that sum relates.

8. (3)

   If a firm has applied to cancel its Part 4A permission in the way set out in SUP 6.4.5 D (Cancellation of permission), or its status as a payment institution under regulation 10 of the Payment Services Regulations (Cancellation of authorisation) or as regulation 10 is applied by regulation 14 of the Payment Services Regulations (Supplementary provisions), or its status as an electronic money issuer under regulation 10 of the Electronic Money Regulations (Cancellation of authorisation) or as regulation 10 is applied by regulation 15 of the Electronic Money Regulations (Supplementary provisions), or its registration as a CBTL firm under article 13(c) of the MCD Order or its authorisation as a data reporting services provider under regulation 11 of the DRS Regulations, then (1C), (1D) and (1E) do not apply but it must pay the total amount due when the application is made.

9. (4)

   If the FCA has exercised its own-initiative powers to cancel a firm's Part 4A permission, then (1C), (1D) and (1E) do not apply but the firm must pay the total amount due immediately before the cancellation becomes effective.

10. (4A)

    If the FCA has cancelled a firm's authorisation or registration under regulation 10 of the Payment Services Regulations or regulation 10 of the Electronic Money Regulations or its registration under regulation 10 as applied by regulation 14 of the Payment Services Regulations or its registration under regulation 10 as applied by regulation 15 of the Electronic Money Regulations, or its registration under article 13 (except under article 13(c)) of the MCD Order, or its authorisation as a data reporting services provider under regulation 11 or 12 of the DRS Regulations, then (1C), (1D) and (1E) do not apply but the firm must pay the total amount due immediately before the cancellation becomes effective.

11. (5)

    [deleted]

12. (5A)

    [deleted]

13. (6)

    Paragraphs (1C), (1D) and (1E) do not apply to any periodic fee in relation to a firm's permission for operating a multilateral trading facility or operating an organised trading facility and such a fee is not taken into account for the purposes of the split in (1E). Instead any fee for this permission is payable:

    1. (a)

       on 1 August; or

    2. (b)

       30 days from the date of the invoice in the case of a firm which receives permission to be operating a multilateral trading facility or to be operating an organised trading facility or whose permission is extended to include either activity in the course of the relevant financial year.

14. (7)

    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, as the case may be, (1C) or (2) and:

    1. (a)

       the annulment takes effect after 1 April or after the invoice referred to in (1E)(a)(ii) has been issued, then (1C), (1D) and (1E) do not apply, but the person must, where the annulment takes effect after 1 April but before 1 September, pay:

       1. (i)

          an amount equal to 50% of the FCA periodic fee payable for the previous fee year on the date on which the annulment takes effect; and

       2. (ii)

          the balance of the FCA periodic fee due for the current fee year by 1 September or, if later, within 30 days of the date of the invoice, in the fee year to which that sum relates; or

    2. (b)

       the annulment takes effect after 1 September or after the invoice referred to in (1E)(b)(ii) has been issued, then (1C), (1D) and (1E) do not apply, but the person must pay the total amount due on the date on which the annulment takes effect; or

    3. (c)

       the annulment takes effect after 1 August or after the invoice referred to in (2) has been issued, then (2) does not apply, but the person must pay the periodic fee in full on the date on which the annulment takes effect.

A firm which is a member of a group may pay all of the amounts due from other firms in the same group under FEES 4.2.1 R, if:

1. (1)

   it notifies the FCA (in its own capacity and, if applicable, in its capacity as collection agent for the PRA) in writing of the name of each other firm within the group for which it will pay; and

2. (2)

   it pays the fees, in accordance with this chapter, as a single amount as if that were the amount required from the firm under FEES 4.2.1 R.

1. (1)

   If:

   1. (a)

      a firm:

      1. (i)

         makes an application to vary its permission (by reducing its scope), or cancel it, in the way set out in SUP 6.3.15D(3) (Variation of permission) and SUP 6.4.5D (Cancellation of permission); or

      2. (ii)

         applies to vary (by reducing its scope) or cancel its authorisation or registration (regulation 8 and 10(1) of the Payment Services Regulations including as applied by regulation 14 of the Payment Services Regulations); or

      3. (iii)

         applies to cancel its authorisation or registration (regulation 10 and 12 of the Electronic Money Regulations including as applied by regulation 15 of the Electronic Money Regulations); or

      4. (iv)

         applies for revocation of its registration under article 13(c) of the MCD Order; or

      5. (v)

         applies to vary (by reducing its scope) or cancel its authorisation as a data reporting services provider under regulation 11 and 12 of the DRS Regulations; or

      6. (vi)

         receives notice of cancellation of its status as a designated firm; or

   2. (aa)

      an issuer makes an application for de-listing; or

   3. (ab)

      a sponsor notifies the FCA of its intention to be removed from the list of approved sponsors; and

   4. (b)

      the firm, issuer or sponsor makes the application or notification referred to in (a), (aa) or (ab) respectively, or receives notice of cancellation of designated firm status, before the start of the fee year to which the fee relates;

   FEES 4.2.1 R applies to the firm as if the relevant variation or cancellation of the firm's permission or authorisation or registration under the Payment Services Regulations, MCD Order, DRS Regulations or the Electronic Money Regulations, cancellation of designated firm status, de-listing or removal from the list of approved sponsors, took effect immediately before the start of the fee year to which the fee relates.

2. (2)

   But (1) does not apply if, due to the continuing nature of the business, the change is not to take effect on or before 30 June of the fee year to which the fee relates.

1. (1)

   This rule applies if:

   1. (a)

      a firm (A)

      1. (i)
         1. (A)

            acquires all or a part of the business of another firm (B), whether by merger, acquisition of goodwill or otherwise; and

         2. (B)

            would be required to pay a periodic fee in the fee year in which the acquisition takes place; or

      2. (ii)

         becomes authorised or registered as a result of another firm’s (B) simple change of legal status (as defined in FEES 3 Annex 1R Part 6); and

   2. (b)

      had that acquisition or simple change of legal status (or any associated cancellation) not taken place, a periodic fee would have been payable by B in that same fee year.

2. (2)

   If, before the date of acquisition or simple change of legal status, B had paid any periodic fee that would have become payable by it in that fee year, FEES 4.2.1R and FEES 4.2.7ER to FEES 4.2.7KR will not apply to A in relation to the business of B.

3. (3)
   1. (a)

      If, before the date of acquisition or simple change of legal status, B had not paid any periodic fee that would have become payable by it in that fee year, FEES 4.2.1R and FEES 4.2.7ER to FEES 4.2.7KR will apply to A in relation to the business of B.

   2. (b)

      Periodic fees that would have become payable in that fee year include those which may have been dis-applied under FEES 4.3.13R.

4. (4)

   Regardless of A’s valuation date:

   1. (a)

      if the acquisition or simple change of legal status takes place before B’s valuation date, then A must report the tariff data for, and pay fees or levies on, the transferred business up to the date of the transfer; and

   2. (b)

      if the acquisition or simple change of legal status takes place after B’s valuation date and B has not paid the relevant fees or levies, then the data should be reported and fees be paid by A as if the transfer had taken place immediately before the valuation (if B continues to be authorised, it should strip the transferred business out of its report).