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The Full Handbook
Full Handbook / FEES / 4 / Annex 2

Click here to view amending instruments for this sectionFEES 4 Annex 2 11, 2233334Fee tariff rates, permitted deductions and EEA/Treaty firm modifications for the period from 1 April 52011 to 31 March 201256

 Rule01/06/2011
Part 1
This table shows the tariff rates applicable to each fee block789410311, 7894103, 6
6(1)For each activity group specified in the table below, the fee is the total of the sums payable for each of the tariff bands applicable to the firm's business, calculated by multiplying the value of the firm's tariff base by the rate applicable to each tranche of the tariff base, as indicated (Note 1).
(2)A firm may apply the relevant tariff bases and rates to non-UK business, as well as to its UK business, if:
 (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 2 of FEES 4 Annex 1 R are disproportionate to the difference in fees payable; and
 (b)it notifies the FSA 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.
(3)For a firm which has not complied with FEES 4.4.2 R (Information on which fees are calculated) for this period:
 (a)the fee is calculated using (where relevant) the valuation or valuations of business applicable to the previous period, multiplied by the factor of 1.10;
 (b)an additional administrative fee of £250 is payable; and
 (c)the minimum total fee (including the administrative fee in (b)) is £430.
Note 15

In the case of activity groups A.3 and A.4 there are three tariff rates. The rate in column 1 applies to all firms in their respective fee-blocks. The rate in column 2 relates to the Solvency 2 Implementation fee and firms must determine their obligation to pay this fee by reference to Part 5 of this Annex. The rate in Column 3 relates to the Solvency 2 Special Project fee and firms must determine their obligation to pay this fee by reference to Part 4 of this annex. The total periodic fee for each of these fee-blocks is determined by adding the amounts obtained under all three columns, as applicable.
Activity groupFee payable
A.1Band width (£ million of Modified Eligible Liabilities (MELs))Fee (£/£m or part £m of MELs)
  Column 1
General Periodic fee		5
 >10 - 140533.4455
 >140 - 630533.4455
 >630 - 1,580533.4455
 >1,580 - 13,400541.8055
 >13,400555.1855
 For a firm in A.1 which has a limitation on its permission to the effect that it may accept deposits from wholesale depositors only, this fee is calculated as above less 30%.

The tariff rates in A.1 are not relevant for the permissions relating to operating a dormant account fund. Instead a flat fee of 5£6,0005 is payable in respect of these permissions.5
A.2Band width (No. of mortgages and/or home finance transactions)Fee (£/mortgage)
 >50 - 13051.795
 >130 - 32051.795
 >320 - 4,57051.795
 >4,570 - 37,50051.795
 >37,50051.795
A.3Gross premium income (GPI)Column 1
General periodic fee		Column 2
Solvency 2 Implementation fee		Column 3
Solvency 2 Special Project fee
 Minimum fee (£)Not applicable525.00525.00
 Band Width (£ million of GPI)Fee (£/£m or part £m of GPI)
 >0.5 - 10.55505.5155119.3855127.575
 >10.5 - 305505.5155119.3855127.575
 >30 - 2455505.5155119.3855127.575
 >245 - 1,9005505.5155119.3855127.575
 >1,9005505.5155119.3855127.575
 PLUS 
 Gross technical liabilities (GTL)Column 1 General Periodic feeColumn 2 Solvency 2 Implementation feeColumn 3
Solvency 2 Special Project fee
 Band Width (£ million of GTL)Fee (£/£m or part £m of GTL)
 >1 - 12.5526.82556.42557.255
 >12.5 - 70526.82556.42557.255
 >70 - 384526.82556.42557.255
 >384 - 3,750526.82556.42557.255
 >3,750526.82556.42557.255
 For UK ISPV's the tariff rates are not relevant and a flat fee of £430 is payable in respect of each FSA financial year (the 12 months ending 31 March).
A.4Adjusted annual gross premium income (AGPI)Column 1
General Periodic fee		Column 2
Solvency 2 Implementation fee		Column 3
Solvency 2 Special Project fee
 Minimum fee (£)Not applicable25.0025.00
 Band Width (£ million of AGPI)Fee (£/£m or part £m of AGPI)
 >1 - 55628.8255147.3955151.355
 >5 - 405628.8255147.3955151.355
 >40 - 2605628.8255147.3955151.355
 >260 - 4,0005628.8255147.3955151.355
 >4,0005628.8255147.3955151.355
 PLUS 
 Mathematical reserves (MR)Column 1
General Periodic fee		Column 2
Solvency 2 Implementation fee		Column 3
Solvency 2 Special Project fee
 Minimum fee (£)Not applicable25.0025.00
 Band Width (£ million of MR)Fee (£/£m or part £m of MR)
 >1 - 20513.44553.10553.065
 >20 - 270513.44553.10553.065
 >270 - 7,000513.44553.10553.065
 >7,000 - 45,000513.44553.10553.065
 >45,000513.44553.10553.065
A.5Band Width (£ million of Active Capacity (AC))Fee (£/£m or part £m of AC)
 >50 - 150556.345
 >150 - 250556.345
 >250 - 500556.345
 >500 - 1,000556.345
 >1,000556.345
A.6Flat fee51,419,112.285
 PLUS 
 Solvency 2 Special Project Flat fee (£)5975,0005
 PLUS 
 Solvency 2 Implementation Flat fee (£)5331,238.495
A.7For class 1(C), (2) and (3) firms: 
 Band Width (£ million of Funds under Management (FuM))Fee (£/£m or part £m of FuM)
 >10 - 15056.805
 >150 - 2,80056.805
 >2,800 - 17,50056.805
 >17,500 - 100,00056.805
 >100,00056.805
 For class 1(B) firms: the fee calculated as for class 1(C) firms above, less 15%. For class 1(A) firms: the fee calculated as for class 1(C) firms above, less 50%.
A.8This activity group does not apply for this period.
A.9Band Width (£ million of Gross Income (GI))Fee (£/£m or part £m of GI)
 >1 - 4.551,380.855
 >4.5 - 1751,380.855
 >17 - 14551,380.855
 > 145 - 75051,380.855
 >75051,380.855
A.10Band Width (No. of traders)Fee (£/trader)
 2 - 353,565.735
 4 - 553,565.735
 6 - 3053,565.735
 31 - 18053,565.735
 >18053,565.735
A.11This activity group does not apply for this period.
A.12Band Width (No. of persons)Fee (£/person)
 2 - 55757.175
 6 - 355757.175
 36 - 1755757.175
 176 - 1,6005757.175
 >1,6005757.175
 For a professional firm in A.12 the fee is calculated as above less 10%.
A.13For class (2) firms: 
 Band Width (No. of persons)Fee (£/person)
 2 - 31,290.54
 4 - 301,290.54
 31 - 3001,290.54
 301 - 2,0001,290.54
 >2,0001,290.54
 For class (1) firms: £1,850 For a professional firm in A.13 the fee is calculated as above less 10%.
A.14Band Width (No. of persons)Fee (£/person)
 2 - 452,809.835
 5 - 2552,809.835
 26 - 8052,809.835
 81 - 19952,809.835
 >19952,809.835
A.15This activity group does not apply for this period.
A.16This activity group does not apply for this period.
A.17This activity group does not apply for this period.
A.18Band Width (£ thousands of Annual Income (AI))Fee (£/£ thousand or part £ thousand of AI)
 >100 - 180513.125
 >180 - 1,000513.125
 >1,000 - 12,500513.125
 >12,500 - 50,000513.125
 >50,000513.125
A.19Band Width (£ thousands of Annual Income (AI))Fee (£/£ thousand or part £ thousand of AI)
 >100 - 32551.945
 >325 - 10,00051.945
 >10,000 - 50,75051.945
 >50,750 - 250,00051.945
 >250,00051.945
B. Market operators£35,000 
B. Service companiesBloomberg LP£45,0005
 LIFFE Services Ltd£35,000
 [row deleted] 
 OMGEO Ltd£35,000
 Reuters Ltd£45,000
 Swapswire Ltd£35,000
B. MTF operatorsAs set out in FEES 4 Annex 10R (Periodic fees for MTF operators).

Part 1 A
6(1)This Part sets out the minimum fee applicable to the firms specified in (3) below.
(2)The minimum fee payable by any firm referred to in (3) is £1,000 unless:
 (a)it is a credit union that meets the conditions in (4), in which case the minimum fee payable is as set out in (4); or
 (b)it is a non-directive friendly society that falls into the A.3 activity group but not the A.4 activity group and meets the conditions set out in (5)(a), in which case the minimum fee payable is £430; or.
 (c)it is a non-directive friendly society that falls into the A.4 activity group but not the A.3 activity group and meets the conditions in (5)(b), in which case the minimum fee payable is £430; or
 (d)it is a non-directive friendly society that falls into the A.3 and A.4 activity groups and meets the conditions in (5)(a) and (5)(b), in which case the minimum fee payable is £430;
(3)A firm (including an incoming EEA firm and an incoming Treaty firm) is referred to in this paragraph if it falls within the following activity groups: A.1; A.2; A.3 (excluding UK ISPVs); A.4; A.5; A.7; A.9; A.10; A.12; A.13; A.14; A.18; and A.19 (Note 1).
(4)The conditions referred to in (2)(a) are that the credit union has a tariff base (Modified Eligible Liabilities) of:
 (a)£0 to £0.5million, in which case a minimum fee of £160 is payable; or
 (b)greater than £0.5millon but less than £2.0million, in which case a minimum fee of £540 is payable.
(5)The conditions referred to in (2) are that:
 (a)the non-directive friendly society falls into the A.3 activity group and has, for that activity, £0.5 million or less in gross premium income and holds gross technical liabilities of £1.0 million or less;
 (b)the non-directive friendly society falls into the A.4 activity group and has, for that activity, written £1.0 million or less in adjusted gross premium income and holds mathematical reserves of £1.0 million or less.
 The figures for gross premium income, gross technical liabilities, adjusted gross premium income and mathematical reserves are the same as used for Part 1 of this Annex.
Note 1In the case of a firm which is required to pay the Solvency 2 Implementation fee (see Part 5) and, where relevant, the Solvency 2 Special Project fee there is an additional minimum fee set out in Part 1.

Part 2
This table shows the permitted deductions that apply where financial penalties are received 5by the FSA under sections 66, 123 and 206 of the Act and regulation 42 of the Money Laundering Regulations:56
7Activity group6Amount of deduction
6Part 1A (minimum fee) 516.8%5 of the fee payable by the firm for the activity group (see Part 1)
A.1688, 116517.0%5611 of the fee payable by the firm for the activity group (see Part 1)
A.2688, 116520.8%5611 of the fee payable by the firm for the activity group (see Part 1)
A.3688, 116516.9%5611 of the fee payable by the firm for the activity group (see Part 1). The deduction does not apply to any Solvency 2 Special Project 6fee (as defined in Part 1)10 or Solvency 2 Implementation fee as applicable under Part 5.11
A.4688, 116516.9%5611 of the fee payable by the firm for the activity group (see Part 1). The deduction does not apply to any Solvency 2 Special Project 6fee (as defined in Part 1)10 or Solvency 2 Implementation fee as applicable under Part 5.11
A.5688, 116516.8%5611 of the fee payable by the firm for the activity group (see Part 1)
A.6688, 1166, 516.8%511 of the fee payable by the firm for the activity group (see Part 1). The deduction does not apply to any Solvency 2 Special Project flat fee or Solvency 2 Implementation flat fee (as defined in Part 1).11
A.7688, 1166, 518.1%511 of the fee payable by the firm for the activity group (see Part 1)
A.9688, 1166, 516.8%511 of the fee payable by the firm for the activity group (see Part 1)
A.10688, 1166, 518.6%511 of the fee payable by the firm for the activity group (see Part 1)
A.12688, 1166, 521.7%511 of the fee payable by the firm for then activity group (see Part 1)
A.13688, 1166, 517.7%511 of the fee payable by the firm for the activity group (see Part 1)
A.14688, 1166, 520.4%511 of the fee payable by the firm for the activity group (see Part 1)
A.18688, 1166, 518.2%511 of the fee payable by the firm for the activity group (see Part 1)
A.19688, 1166, 517.3%511 of the fee payable by the firm for the activity group (see Part 1)

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Part 32
This table shows the modifications to fee tariffs that apply to incoming EEA firms and incoming Treaty firmswhich have established branches in the UK13.
Activity groupPercentage deducted from the tariff payable under Part 1 applicable to the firm 6
A.1650%613613
A.36906%6
A.425%6
A.75%6
A.95%6
A.1010%6
A.1210%6
A.1310%6
A.1910%6
B. MTF operators3Not applicable6
Note 16The modifications to fee tariffs payable by an incoming EEA firm or an incoming Treaty firm which has established a branch in the UK 13apply only in relation to the relevant regulated activities of the firm which are passported activities or Treaty activities and which are carried on in the UK.
6Note 2The minimum fee described in Part 1A of FEES 4 Annex 2 R applies in full and the modifications in this Part do not apply to it.


10Part 4
This table shows the calculation of the Solvency 2 Special Project 6fee for firms falling into fee block A.3 or A.4.6
(1)The Solvency 2 Special Project 6fee forms part of the periodic fee payable under fee5 blocks5 A.3 and A.4.5
(2)The Solvency 2 Special Project 6fee is only payable by a firm if it meets the conditions in Part6, 5 5 and the conditions set out in paragraph (3) of this Part.5
 (a)11611, 5[deleted]5
 (b)66, 511[deleted]5
 (c)11111111, 6[deleted]6
 11(d)6[deleted]6
(3)1111111111111111111111, 66, 5The conditions are that:5
 5(a)before 1 April 2011 the firm, or a member of the group of which the firm is also a member (in either case, 'the recipient'), received a written communication from the FSA that it has met the criteria for entry into pre-Internal Model Approval Process status ('pre-IMAP'); and
 5(b)the recipient remains in pre-IMAP status on 1 April 2011.
(4)6666656116For the purposes of (3)(b), the recipient will be deemed to be in pre-IMAP status unless, before 1 April 2011:5
 5(a)the recipient informs the FSA in writing that it wishes to withdraw from pre-IMAP status; or
 5(b)the recipient has been informed by the FSA in writing that it is no longer in pre-IMAP status.
(5)1111, 66, 5For the purposes of this Part a reference to pre-IMAP means the status achieved by the recipient by joining the process established by the FSA whereby the FSA and the recipient engage with a view to the FSA establishing whether an internal model developed by the recipient is likely to meet the tests and standards specified in the Solvency 2 Directive.5
(6)11141111, 66, 514A reference to 'group' in this Part means a group determined by reference to the provisions contained in Title III, Chapter I of the Solvency 2 Directive.5
(7)11611[deleted]6
(8)1111, 6[deleted]6
(9)6[deleted]6
(10)6[deleted]6
(11)6FEES 4.2.6 R and FEES 4.2.7 R do not apply to the Solvency 2 Special Project fee.6


11Part 5
This Part sets out when a Solvency 2 Implementation fee is due for firms in the A.3 and A.4 fee-blocks.
(1)The Solvency 2 Implementation fee is only payable by a firm if it meets all the conditions in (2) and neither of the conditions in (3).
(2)The conditions in this paragraph are:
 (a)FEES 4.3.13 R (Firms Applying to Cancel or Vary Permission Before Start of Period) does not apply with respect to the relevant fee-blocks;
 (b)the firm has not notified the FSA before the start of the financial year 66, 52011/125 that it intends to migrate out of the United Kingdom for regulatory purposes before the 6Solvency 2 Directive6 is implemented;
 (c)6it meets either of the following conditions:6
  (i) its gross premium income or adjusted gross premium income, as appropriate, referred to in FEES 4 Annex 1 R Part 2, exceeds EUR 5 million at the end of the financial year ended in the calendar year ending 31 December prior to the FSA financial year; or
  (ii) its gross technical liabilities or mathematical reserves, as appropriate, referred to in FEES 4 Annex 1 R, Part 2, exceed EUR 25 million at the end of the financial year ended in the calendar year ending 31 December prior to the FSA financial year;6
 (d)it was in one or both of the insurance fee blocks at the start of the financial year 6, 52011/12;5
 6(e)it is not an incoming EEA firm or an incoming Treaty firm.
(3)The conditions in this paragraph are:
 (a)the firm is a reinsurance undertaking that has, by 10 December 2007, ceased to conduct new insurance business and only administers its existing portfolio in order to terminate its activity as a reinsurance undertaking;
 (b)it is a reinsurance undertaking whose insurance business is conducted or fully guaranteed by the United Kingdom government for reasons of substantial public interest in the capacity of reinsurer of last resort.
(4)Where a firm has notified the FSA that it intends to migrate out of the United Kingdom for regulatory purposes before the 6Solvency 2 Directive 6is implemented in the United Kingdom but when the 6Solvency 2 Directive 6is implemented that firm remains in the United Kingdom for regulatory purposes, it must pay the Solvency 2 Implementation fee for each financial year commencing 1 April 2009 for which the Solvency 2 Implementation fee would have applied to the firm but for the firm notifying the FSA of its intention to migrate.
(5)Where a firm is required to pay a Solvency 2 Implementation fee because of the circumstances described in (4) it must pay this fee within 30 days of the date of the invoice.
(6)For the purposes of this Part, the exchange rate from the Euro to the pound sterling is calculated as at the last day of the October preceding the financial year of the FSA in question for which the exchange rates for the currencies of all European Union member states were published in the Official Journal of the European Union.
6(7)FEES 4.2.6 R and FEES 4.2.7 R do not apply to the Solvency 2 Implementation fee.

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