FEES 7A SFGB levies

This chapter applies to the persons listed in:

1. (1)

   FEES 1.1.2R(5) in relation to the SFGB money advice levy and SFGB debt advice levy; and

2. (2)

   FEES 7A.1.2R in relation to the SFGB pensions guidance levy.

The SFGB pensions guidance levy applies to a firm that:

1. (1)

    has a Part 4A Permission; and

2. (2)

    falls within one or more of the following activity groups listed in Part 1 of FEES 4 Annex 1AR:

   1. (a)

       A.1 Deposit acceptors;

   2. (b)

       A.4 Insurers – life;

   3. (c)

       A.7 Portfolio managers except Class (1)A firms;

   4. (d)

       A.9 Managers and depositaries of investment funds, and operators of collective investment schemes or pension schemes; and

   5. (e)

       A.13 Advisors, arrangers, dealers or brokers.

A firm is not liable to pay a SFGB levy in relation to payment services or electronic money issuance if it is the Bank of England, a government department, a local authority, a municipal bank or the National Savings Bank.

The SFGB levy is made up of:

1. (1)

   the SFGB money advice levy, as set out in FEES 7A.3;

2. (2)

   the SFGB debt advice levy, as set out in FEES 7A.3; and

3. (3)

   the SFGB pensions guidance levy, as set out in FEES 7A.4.

A firm must pay the SFGB money advice levy or SFGB debt advice levy applicable to it:

1. (1)

   in full and without deduction (unless permitted or required by a provision in FEES); and

2. (2)

   by 1 August or, if later, within 30 days of the date of the invoice in the fee year to which that sum relates.

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 7A.3.1R and the annulment takes effect after 1 August or after the invoice referred to in FEES 7A.3.1R(2) has been issued, then the date for payment referred to in FEES 7A.3.1R(2) does not apply, but the person must pay the SFGB money advice levy or SFGB debt advice levy applicable to it in full and without deduction, on the date on which the annulment takes effect.

The SFGB money advice levy and SFGB debt advice levy are each calculated as follows:

1. (1)

   identify each of the activity groups set out in Part 1 of FEES 7A Annex 1R and Part 1 of FEES 7A Annex 2R that apply to the business of the firm for the relevant period (for this purpose, the activity groups under FEES 7A Annex 1R are defined in accordance with Part 1 of FEES 4 Annex 1AR and the activity groups under FEES 7A Annex 2R are defined in accordance with Part 1 of that Annex);

2. (2)

   calculate, for each of those activity groups identified in (1), the amount payable in the way set out in FEES 7A.3.4R;

3. (3)

   add each of the amounts calculated under (2);

4. (4)

   work out whether a minimum fee is payable under Part 2 of FEES 7A 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 (if applicable) FEES 4.2.7ER, FEES 4.2.7FR, FEES 4.2.7GR, FEES 4.2.7HR, FEES 4.2.7IR, FEES 4.2.7JG and FEES 4.2.7KR;

7. (7)

   apply any applicable payment charge specified in FEES 4.2.4R 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 calculations using information obtained in accordance with FEES 4.4 in the case of FEES 7A Annex 1R and Part 3 of FEES 7A Annex 2R in the case of Part 2 of that Annex.

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

1. (1)

   calculate the size of the firm’s tariff base for that activity group using:

   1. (a)

      the tariff base calculations in Part 3 of FEES 4 Annex 1AR, Part 3 of FEES 4 Annex 11 and Part 2 of FEES 7A Annex 2R; and

   2. (b)

      the valuation date requirements in Part 5 of FEES 4 Annex 1AR, Part 3 of FEES 4 Annex 11R and Part 3 of FEES 7A Annex 2;

2. (2)

   use the figure in (1) to calculate which of the bands set out in the table in Part 1 of FEES 7A Annex 1R and Part 4 of FEES 7A Annex 2R the firm falls into;

3. (3)

   add together the fixed sums, as set out in the table in Part 1 of FEES 7A Annex 1R and Part 4 of FEES 7A Annex 2R, applicable to each band identified under (2);

4. (4)

   the amount in (3) is the amount payable by the firm with respect to that activity group.

For the purposes of FEES 7A.3.4R:

1. (1)

   a firm 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 Part 3 of FEES 4 Annex 1AR and Part 1 of FEES 4 Annex 11R 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;

2. (2)

   for a firm which has not complied with FEES 4.4.2R (information on which fees are calculated) or FEES 4.4.8D (Information relating to payment services and the issuance of electronic money) for this period, the SFGB money advice levy and SFGB debt advice 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 modifications in Part 3 of FEES 4 Annex 2AR and Part 7 of FEES 4 Annex 11R apply.

The SFGB money advice levy in relation to the Society is specified against its activity group in Part 1 of FEES 7A Annex 1R.

The rules set out in the table in FEES 7A.3.10R and any other rules in FEES 4 included in FEES 7A by cross-reference apply to the SFGB money advice levy and SFGB debt advice levy in the same way as they apply to periodic fees payable under FEES 4.3.1R.

References in a FEES 4 rule incorporated into FEES 7A by cross-reference to a periodic fee should be read as being to the SFGB money advice levy and SFGB debt advice levy. References in a FEES 4 rule incorporated into FEES 7A to market operators, service companies, MTF operators, investment exchanges, or designated professional bodies should be disregarded.

A firm must pay the SFGB pensions guidance 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 fee year to which that sum relates; and

2. (2)

   in accordance with the rules in this section.

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 7A.4.1R and the annulment takes effect after 1 August or after the invoice referred to in FEES 7A.4.1R(1) has been issued, then the date for payment referred to in FEES 7A.4.1R(1) does not apply, but the person must pay the SFGB pensions guidance levy applicable to it in full and without deduction, on the date on which the annulment takes effect.

The SFGB pensions guidance levy applicable to a particular firm is calculated as follows:

1. (1)

   identify each of the activity groups in FEES 7A.1.2R(2) that apply to the business of the firm for the relevant period;

2. (2)

   calculate the amount payable under FEES 7A.4.3R for each of those activity groups;

3. (3)

   modify the result in accordance with, if applicable, FEES 7A.4.4R; and

4. (4)

   apply any payment charge in FEES 4.2.4R.

The amount payable for a particular activity group is calculated as follows:

1. (1)
   1. (a)

      calculate the size of the firm’s tariff base for the activity group using:

      1. (i)

         the tariff base calculations in Part 3 of FEES 4 Annex 1AR; and

      2. (ii)

         the valuation date requirements in Part 5 of FEES 4 Annex 1AR;

   2. (b)

      exclude best estimate liabilities for fees purposes in the calculation for fee-block A4;

2. (2)

   use the figure in (1) to calculate the levy applicable for each band in FEES 7A Annex 3R;

3. (3)

   add together the sums for each applicable band under (2);

4. (4)

   the amount in (3) is the amount payable by the firm for that activity group.

For the first fee year during which FEES 7A.4.2R applies to a firm’s permission to carry on a regulated activity, the SFGB pensions guidance levy applicable to that permission must be modified using the formula in FEES 4.2.6R.

For FEES 7A.4.3R, a firm may apply the relevant tariff bases and rates to its non-UK business, as well as to its UK business, if:

1. (1)

   it has reasonable grounds for believing that the cost of identifying the firm’s UK business separately from its non-UK business is disproportionate to the difference in the SFGB pensions guidance levy payable by it; and

2. (2)

   it notifies the FCA in writing:

   1. (a)

      at the same time as it provides the information concerned under FEES 4.4 (Information on which fees are calculated); or

   2. (b)

      if earlier, at the time it pays the SFGB pensions guidance levy applicable to it.

The SFGB pensions guidance levy is calculated using the same information that is used to calculate a firm’s periodic fee under FEES 4.

Where a firm which has not complied with FEES 4.4.2R (information on which fees are calculated) in relation to a particular fee year the SFGB pensions guidance levy for that firm for that fee year is calculated using (where relevant) the valuation(s) of business used to calculate the SFGB pensions guidance levy for that firm for the previous fee year, multiplied by the factor of 1.10.

The rules in the table in FEES 7A.4.11R and any other rules in FEES included in FEES 7A.4 by cross-reference apply to the SFGB pensions guidance levy in the same way as they apply to periodic fees payable under FEES 4.

A reference to a periodic fee in a FEES 4 rule incorporated into FEES 7A.4 must be read, for the purposes of applying that rule to the SFGB pensions guidance levy, as a reference to the SFGB pensions guidance levy.