FEES 3
Application, Notification and Vetting Fees
FEES 3.1
Introduction
- 01/01/2006
Application
FEES 3.1.1
See Notes
This chapter applies to every person set out in
FEES 1.1.2R (1).
- 01/01/2006
FEES 3.1.2
See Notes
- 01/01/2006
Purpose
FEES 3.1.3
See Notes
The purpose of this chapter is to set out the
FSA
fee paying requirements on the persons set out in FEES 1.1.2R (1). The FSA's power to charge in respect of guidance regarding the Basel Capital Accord is derived from section 157(4)(c) of the Act.
- 01/01/2006
FEES 3.1.4
See Notes
Most of the detail of what fees are payable by the persons referred to in FEES 3.1.3 G is set out in FEES 3 Annex 1 -
FEES 3 Annex 6.
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FEES 3.1.5
See Notes
- (1) The rates set for authorisation fees represent an appropriate proportion of the costs of the FSA in processing the application or exercise of Treaty rights.
- (2) The fees for collective investment schemes reflect the estimated costs to the FSA of assessing applications and notifications. The level of fees payable in respect of an application or a notification will vary depending upon the provision of the Act under which it is made. This fee is adjusted when the scheme concerned is an umbrella scheme.
- (3) Application fees for recognised bodies are calculated from a tariff structure intended to reflect the estimated cost of processing an application of that type and complexity.
- 01/01/2006
FEES 3.1.6
See Notes
Applications for Part IV permission (and exercises of Treaty rights) are categorised by the FSA for the purpose of fee raising as complex, moderately complex and straightforward as identified in FEES 3 Annex 1. This differentiation is based on the permitted activities sought and does not reflect the FSA's risk assessment of the applicant (or Treaty firm).
- 01/01/2006
FEES 3.1.7
See Notes
A potential applicant for
Part IV permission
(or Treaty firm) has the opportunity to discuss its proposed application (or exercise of Treaty rights) with the
FSA
before submitting it formally (see AUTH 3.9.1 G). If an applicant for
Part IV permission
(or Treaty firm) does so, the
FSA
will be able to use that dialogue to make an initial assessment of the fee categorisation and therefore indicate the authorisation fee that should be paid.
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FEES 3.1.8
See Notes
See
AUTH 3.9
in relation to the procedures for making applications for Part IV permission and SUP 13A for procedures for the exercise of Treaty rights by Treaty firms.
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FEES 3.2
Obligation to pay fees
- 01/01/2006
General
FEES 3.2.1
See Notes
A person in column (1) of the table in FEES 3.2.7 R as the relevant fee payer for a particular activity must pay to the FSA a fee for each application or request for vetting or admission approval made, or notification or notice of exercise of a Treaty right given, as is applicable to it, as set out or calculated in accordance with the provisions referred to in column (2) of that table:
- (1) in full and without deduction; and
- (2) on or before the date given in column (3) of that table.
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FEES 3.2.2
See Notes
If an application for a
Part IV permission
(or exercise of a Treaty right) falls within more than one category set out in FEES 3 Annex 1, only one fee is payable. That fee is the one for the category to which the highest fee tariff applies.
- 01/01/2006
Method of payment
FEES 3.2.3
See Notes
- (1) Unless (2) applies, the sum payable under FEES 3.2.1 R must be paid by bankers draft, cheque or other payable order.
- (2) FSA does not specify a method of payment for a person seeking to become a recognised body or a designated professional body or to be added to the list of designated investment exchanges.
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FEES 3.2.4
See Notes
The FSA expects that a person seeking to become a recognised body or a designated professional body or to be added to the list of designated investment exchanges will generally pay their respective fees by electronic credit transfer.
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FEES 3.2.5
See Notes
- (1) The appropriate authorisation fee is an integral part of an application for, or an application for a variation of, a Part IV permission Any application received by the FSA without the accompanying appropriate fee, in full and without deduction (see FEES 3.2.1 R), will not be treated as an application made, incomplete or otherwise, in accordance with section 51(3)(a) or section 44, of the Act. Where this is the case, the FSA will contact the applicant to point out that the application cannot be progressed until the appropriate fee has been received. In the event that the appropriate authorisation fee, in full and without deduction, is not forthcoming, the application will be returned to the applicant and no application will have been made.
- (2) With the exception of persons seeking to become a designated professional body, all applications, notifications, requests for vetting or admission approval will be treated as incomplete until the relevant fee is fully paid and the FSA will not consider an application, notification, request for vetting or admission approval until the relevant fee is fully paid. Persons seeking to become a designated professional body have 30 days after the designation order is made to pay the relevant fee.
- 01/01/2006
FEES 3.2.6
See Notes
Fees paid under this chapter are not refundable.
- 01/01/2006
FEES 3.2.7
See Notes
Table of application, notification and vetting fees
| (1) Fee payer | (2) Fee payable | Due date | |||||
| (a) | Any applicant for Part IV permission (including an incoming firm applying for top-up permission) | (1) | Unless (2) applies, in respect of a particular application, the highest of the tariffs set out in FEES 3 Annex 1 part 1 which apply to that application. | On or before the application is made | |||
| (2) | In respect of a particular application which is: | ||||||
| (i) | a straightforward or moderately complex case for the purposes of FEES 3 Annex 1 part 1, and only involves a simple change of legal status as set out in |
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| (ii) | FEES 3 Annex 1 part 6, the fee payable is 50% of the tariff that would otherwise be payable in FEES 3 Annex 1 part 1 |
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| (b) | Any Treaty firm that wishes to exercise a Treaty right to qualify for authorisation under Schedule 4 to the Act (Treaty rights) in respect of regulated activities for which it does not have an EEA right | (1) | Where no certificate has been issued under paragraph 3(4) of Schedule 4 to the Act the fee payable is, in respect of a particular exercise, set out in FEES 3 Annex 1, part 4 | On or before the notice of exercise is given | |||
| (2) | Where a certificate in (i) has been issued no fee is payable | ||||||
| (c) | Any applicant for a certificate under article 54 of the Regulated Activities Order | 2,000 | On or before the application is made | ||||
| (d) | Applicants for an authorisation order for, or recognition of, a collective investment scheme | FEES 3 Annex 2, part 1 | On or before the application is made | ||||
| (e) | The operator of a scheme making a notification under section 264 or section 270 of the Act | FEES 3 Annex 2, part 2 | On or before the date the application is made | ||||
| (f) | Any person seeking an order under section 326(1) of the Act to become a designated professional body. | 10,000 | 30 days after the order is granted | ||||
| (g) | Any applicant for recognition as a UK recognised body under section 287 or section 288 of the Act | FEES 3 Annex 3, part 1 | On or before the date the application is made | ||||
| (h) | Any applicant for recognition as an overseas recognised body under section 287 or section 288 and section 292 of the Act | FEES 3 Annex 3, part 2 | On or before the date the application is made | ||||
| (i) | An applicant for listing (under the listing rules) | FEES 3 Annex 4, part 1 | On or before the date the application is made | ||||
| (j) | Applicant for approval as sponsor (under the listing rules) | FEES 3 Annex 4, part 2 | On or before the date the application is made | ||||
| (k) | Issuers of tranches from debt issuance programmes and securitised derivative tranches | FEES 3 Annex 4, part 1 | An upfront fee is required per tranche for draw downs in the following 12 months | ||||
| (l) | Under the listing rules, an issuer involved in specific events or transactions during the year where documentation is subject to a transaction vetting | FEES 3 Annex 5, part 1, unless the transaction would come within the definition of significant transaction under category (q) in this table, in which case the fee payable under that category. | On or before the date that relevant documentation is first submitted to the FSA | ||||
| (m) | Under the prospectus rules, an issuer or person requesting approval or vetting of the documents arising in relation to specific events or transactions that it might be involved in during the year | FEES 3 Annex 5, part 2, unless the transaction would come within the definition of significant transaction under category (q) in this table, in which case the fee payable under that category. | On or before the date that relevant documentation is first submitted to the FSA | ||||
| (n) | Applicants to be added to the list of designated investment exchanges | 50,000 | On or before the date the application is made | ||||
| (o) | In connection with rules (or future rules) implementing the Capital Requirements Regulations 2006 (including any amendments): | If the firm is applying to the FSA: | Where the firm has made an application directly to the FSA, on or before the date the application is made, otherwise within 30 days after the FSA notifies the firm that its EEA parent's Home State regulator has requested the FSA's assistance. On or before the date the application is made | ||||
| (i) | a firm applying to the FSA for a waiver or concession (or guidance on the availability of either): or | (1) | unless (2) applies, FEES 3 Annex 6; | ||||
| (ii) | a firm’s EEA parent applying to its Home State regulator for the use of the Internal Ratings Based approach and the Home State regulator requesting the FSA’s assistance in accordance with the Capital Requirements Regulations 2006. | (2) | (a) | unless (b) applies a firm submitting a second application for a waiver or concession or guidance described in column (1) within 12 months of the first application (where the fee was paid in accordance with (1)) must pay 50% of the fee applicable to it under FEES 3 Annex 6, but only in respect of that second application | |||
| (b) | No fee is payable by a firm in relation to a successful application for a waiver or a concession based on a minded to grant decision in respect of the same matter following a complete application for guidance in accordance with prescribed submission requirements. | ||||||
| (c) | No fee is payable by a firm applying to its Home State regulator where the Home State regulator has requested the assistance of the FSA and the firm falls within Group 4 of Part 1 of FEES 3 Annex 6. |
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| (p) | A firm applying for a variation of its Part IV permission | (1) | Unless (2) applies, if the proposed new business of the firm would fall within one or more activity groups specified in Part 1 of FEES 4 Annex 1 not applicable before the application, the fee is 50% of the highest of the tariffs set out in FEES 3 Annex 1 which apply to that application | On or before the date the application is made | |||
| (2) | If the only change is that the A.12 activity group tariff applied to the firm's business before the variation and the A.13 activity group will apply after variation, no fee is payable(3) In all other cases, other than applications by credit unions, the fee payable is 250, unless the variation involves only the reduction (and no other increases) in the scope of a Part IV permission in which case no fee is payable. | ||||||
| (q) |
A significant transaction, being one where:
|
50,000 | On or before the date the application is made. | ||||
| (i) |
the issuer has a market capitalisation in excess of 1.5 billion and it is a new applicant for a primary listing under the listing rules, or involved in a reverse or hostile takeover or a significant restructuring; or |
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| (ii) |
the issuer has a market capitalisation in excess of 5 billion and is involved in a class 1 transaction or a transaction requiring vetting of an equity prospectus or equivalent document; or |
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| (iii) |
the issuer is proposing a Depositary Receipt issue intended to raise more than 5billion. |
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| (r) | Providers of reporting or trade matching systems applying for recognition under MiFID as an Approved Reporting Mechanism. | 20,000 | On or before the date the application is made. | ||||
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FEES 3 Annex 1
Authorisation fees payable
- 01/01/2006
See Notes
Part 1 - Authorisation fees payable R
Part 2 - Complexity Groupings Straightforward Cases R
Moderately Complex Cases R
Complex Cases R
Part 4 - Authorisation Fees for Treaty Firms R
Part 5 - Activity Groupings R
Part 6 - Change of legal status
| Application type (see Part 2) | Amount payable | |
| (a) | Credit unions - registration of common bond | 200 |
| (b) | Version 1 credit unions - authorisation | 300 |
| (c) | Version 2 credit unions - authorisation | 1,800 |
| (d) | Straightforward | 1,500 |
| (e) | Moderately complex | 5,000 |
| (f) | Complex | 25,000 |
| Straightforward cases | |
| Activity grouping | Description |
| A.3 | Friendly societies only |
| A.4 | Friendly societies only |
| A.12 | Advisory arrangers, dealers or brokers (holding or controlling client money and/or assets) |
| A.13 | Advisory only firms and advisory arrangers, dealers or brokers (not holding or controlling client money and/or assets) |
| A.14 | Corporate finance advisers |
| A.18 | Home finance providers, advisers and arrangers (excluding home finance providers) |
| A.19 | General insurance mediation |
| Moderately complex cases | |
| Activity grouping | Description |
| A.1 | E-money issuers only |
| A.2 | Home finance providers and administrators |
| A.3 | UK ISPVs |
| A.4 | UK ISPVs |
| A.5 | Managing agents at Lloyd's |
| A.7 | Fund managers |
| A.9 | Operators, trustees and depositaries of, operators of personal pension schemes and operators of stakeholder pension schemes |
| A.10 | Firms dealing as principal |
| B. | Service companies |
| Complex cases | |
| Activity grouping | Description |
| A.1 | Deposit acceptors (excluding e-money issuers and credit unions) |
| A.3 | Insurers - general (excluding friendly societies and UK ISPVs) |
| A.4 | Insurers - life (excluding friendly societies and UK ISPVs) |
| If the Treaty firm wishes to undertake the permitted activities in question through its branch in the United Kingdom, the fee is 50% of the fee that would be payable under FEES 3.2.7 R for an applicant for Part IV permission. |
| If the Treaty firm wishes to undertake the permitted activities in question by providing services in the United Kingdom, the fee is 25% of the fee which would be payable under FEES 3.2.7 R for an applicant for Part IV permission. |
| The activity group definitions are set out in FEES 4 Annex 1R. |
| An application involving only a simple change of legal status for the purposes of FEES 3.2.7 R is from an applicant: | ||
| (1) | which is a new legal entity intending to carry on the business, using the same business plan, of an existing firm with no outstanding regulatory obligations cancelling its Part IV permission, and | |
| (2) | which is to: | |
| (a) | have the same or narrower permission, and the same branches (if any), as the firm; | |
| (b) | assume all of the rights and obligations in connection with the regulated activities carried on by the firm; | |
| (c) | continue the same compliance arrangements and compliant client asset and client money procedures, as the firm, subject to any changes required only as a result of the change of legal status; | |
| (d) | continue with a risk profile and arrangements for controlling and monitoring risk which will not be materially different from those of the firm; and | |
| (e) | have the individuals within the firm that are responsible for insurance mediation activity perform the same role for the applicant. | |
- 06/11/2006
FEES 3 Annex 2
Application and notification fees payable in relation to collective investment schemes
- 01/01/2006
See Notes
| Legislative provision | Nature and purpose of fee | Payable by | Amount of fee | Umbrella scheme factor (note 1) |
| Part 1 Application fees payable for firms to be subject to CIS | ||||
| Regulation 12 of the OEIC Regulations | On application for an order declaring a scheme to be an ICVC | An applicant | 1,200 | 2 |
| Section 242 of the Act | On application for an order declaring a scheme to be an AUT | An applicant | 1,200 | 2 |
| Section 272 of the Act | On application for an order declaring a scheme to be an individually recognised overseas scheme | An application | 14,000 | 2 |
| Part 2 Application fees payable for firms to be subject to COLL | ||||
| Regulation 12 of the Act | On application for an order declaring a scheme to be an ICVC, where the scheme is: | An applicant | 2 | |
| UCITS scheme | 1,200 | |||
| Non-UCITS retail scheme | 1,500 | |||
| Qualified investor scheme | 2,400 | |||
| Section 242 of the Act | On application for an order declaring a scheme to be an AUT, where the scheme is: | An applicant | 2 | |
| UCITS scheme | 1,200 | |||
| Non-UCITS retail scheme | 1,500 | |||
| Qualified investor scheme | 2,400 | |||
| Section 272 of the Act | On application for an order declaring a scheme to be an individually recognised overseas scheme | An applicant | 14,000 | 2 |
| Part 3 (notifications) | ||||
| Section 264 of the Act | On giving notice under section 264 of the Act | The operator | 600 | 2 |
| Section 270 of the Act | On giving notice under section 270 of the Act | The operator | 600 | 2 |
| Part 4 (Alternative Investment Funds: fees payable for making a notification to the FCA to market an AIF) | ||||
| Notes: | |
| 1. | For an umbrella scheme the fee is multiplied by the factor shown in the final column of the table. |
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FEES 3 Annex 3
Application fees payable in connection with Recognised Investment Exchanges and Recognised Clearing Houses
- 01/01/2006
See Notes
| Description of applicant | Amount payable | Due date | |
| Part 1 (UK recognised bodies) | |||
| Applicant for recognition as a UK RIE | 100,000 | Date the application is made | |
| Applicant for recognition as a UK RCH | 100,000 | Date the application is made | |
| Additional fees for applicant who proposes to: | |||
| - | act as a central counterparty | 25,000 | Date the application is made |
| - | offer safeguarding and administration services | 25,000 | Date the application is made |
| - | use substantially new and untested information technology systems in the performance of its relevant functions | 25,000 | Date the application is made |
| Part 2 (overseas recognised bodies) | |||
| Applicant for recognition as a recognised overseas investment exchange | 50,000 | Date the application is made | |
| Applicant for recognition as a recognised overseas clearing house | 50,000 | Date the application is made | |
| Additional fees for applicant who proposes to: | |||
| - | act as a central counterparty | 25,000 | Date the application is made |
| - | offer safeguarding and administration services | 25,000 | Date the application is made |
- 01/01/2006
FEES 3 Annex 4
Application fees in relation to listing rules
- 01/04/2007
See Notes
Part 1
Part 2
| Fee type | Fee amount |
| Application Fees | |
| Application for listing | 225 plus 100 per each additional issue of securities with its own International Securities Identification Number unless the fee in Category 8 of FEES 3 Annex 5 Part 2 applies. |
| Sponsor Application Fees | |
| Fee type | Fee amount |
| Application for approval as sponsor | 4,000 |
- 01/04/2007
FEES 3 Annex 5
Document vetting and approval fees in relation to listing and prospectus rules
- 01/01/2006
See Notes
Part 1
| Fee type | Fee amount | |
| Transaction vetting fees Transaction vetting fees relate to specific events or transactions that an issuer might be involved in during the year. |
||
| Eligibility | New applicants | 1,300 |
| Category 1 | Class 1 transactions Listing particulars for Depositary Receipts |
5,700 |
| Category 2 | Listing particulars for issuers of specialist securities | 2,500 |
| Category 3 | All other vetting only transactions | 2,500 |
| Category 4 | Supplementary listing particulars | 500 |
Part 2
These fees relate to approval or vetting of the documents referred to in the second column of this table arising in relation to specific events or transactions that an issuer, offeror or person requesting admission might be involved in during the year.
| Category 1 | Equity prospectus Equivalent document referred to in PR 1.2.2R(2) or (3) or PR 1.2.3R(3) or (4) Depositary Receipt prospectus |
5,700 |
| Category 2 | Equity registration document | 4,000 |
| Category 3 | Equity securities note and summary Summary document referred to in PR 1.2.3R(8) |
2,500 |
| Category 4 | Non-equity prospectus or base prospectus (excluding drawdown prospectus or base prospectus) Equivalent document referred to in PR 1.2.2R(2) or (3) or PR 1.2.3R(3) or (4) |
2,500 |
| Category 5 | Non-equity registration document | 1,750 |
| Category 6 | Non-equity securities note and summary Summary document referred to in PR 1.2.3R(8) |
600 |
| Category 7 | Supplementary prospectus | 500 |
| Category 8 | Drawdown prospectus or base prospectus | 600 |
Where a fee in category 8 of this fee schedule is payable, the listing application fee under FEES 3 Annex 4 Part 1 does not apply.
Fees from other fee schedules contained in other sections of the sourcebook may be applicable to a single submission.
Certain transactions may come within the category of significant transactions and thus attract a higher fee, as set out in 3.2.7(q) R.
- 01/04/2007
FEES 3 Annex 6
Fees payable for a waiver (or concession) or guidance on the availability of either in connection with rules implementing Basel Capital Accord
- 01/06/2006
See Notes
Part 1 Fees payable other than for applications for a waiver (or concession) or guidance on the availability of either to allow a firm to use the counterparty credit risk internal model method.
Part 2
Fees payable for applications for a waiver (or concession) or guidance on the availability of either to allow a firm to use the counterparty credit risk internal model method.
52,000
| For firms falling into a group (Group 1) in which five or more significant overseas entities are applying for guidance on the availability of a waiver or concession in connection with future rules implementing the revised Basel Capital Accord (including any amendments), the fees in Table 1 are applicable. Where a request for assistance regarding an Advanced or Foundation IRB application under the Capital Requirements Regulations 2006 has been made to the FSA as detailed in FEES 3.2.7 R (o), the fees in Table 1 and Table 2 are applicable if: |
|
| (i) | the firm is a subsidiary of the applicant in the United Kingdom and has permission to accept deposits; and |
| (ii) | the firm does not fall within Group 4 of Table 2. |
| Table 1 |
| Application group | Description of group | Application fee 2007/08 | ||
| Advanced IRB ('000) | Foundation IRB ('000) | AMA ('000) | ||
| Group 1 | Five or more significant overseas entities applying for guidance on the availability of a waiver or concession in connection with future rules implementing the revised Basel Capital Accord (including any amendments) | 257 | 222 | 174 |
| For all other firms the fees in Table 2 are applicable |
| Table 2 |
| Application group | Description of group | Application fee 2007/08 | |||
| Modified eligible liabilities (m) | Number of traders as at 31 December 2006 | Advanced IRB ('000) | Foundation IRB ('000) | AMA ('000) | |
| Group 2 | >40,000 | >200 | 222 | 190 | 140 |
| Group 3 | >5,000 - 40,000 | 26 - 200 | 90 | 69 | 49 |
| Group 4 | 0 - 5,000 | 0 - 25 | 40 | 29 | 23 |
| (1) | Advanced and Foundation IRB applications are applications for guidance regarding the Internal Ratings Based approach for credit risk. AMA applications are applications for guidance regarding the Advanced Measurement Approach for operational risk. |
| (2) | For the purposes of Table 2, a firm's A.1 or A10 tariff data for the relevant period will be used to provide the value of modified eligible liabilities or number of traders. |
Fees payable for applications for a waiver (or concession) or guidance on the availability of either to allow a firm to use the counterparty credit risk internal model method.
52,000
- 01/04/2007