31/12/2010| Class A | Deposit |
| Legal basis for activity in class A | accepting deposits. and/or operating a dormant account fund.2 BUT does not include any fee payer who either effects or carries out contracts of insurance. |
| Tariff base | (1) Protected deposits and/or 2 (2) Protected dormant accounts multiplied by 0.2 as at 31 December2Except where paragraph (4) says otherwise, protected deposits must be adjusted as follows.3, 4 |
| (1) Only include a protected deposit to the extent that an eligible claimant would have a claim in respect of it. | |
| (2) Exclude any amount in respect of which the FSCS would not pay compensation due to the maximum payment limits in COMP 10.2. | |
| (3) The tariff base calculation is made on the basis of the information that the firm would have to include in the single customer views it has to be able to produce under COMP 17 (Systems requirements for firms that accept deposits). The information must be of the extent and standard required if the firm was preparing the single customer views as at the valuation date for the tariff base (31 December). | |
| (4) (a) If this paragraph applies, the adjustments in (1) to (3) do not apply and the calculation is based on protected deposits. | |
| (b) This paragraph applies with respect to a protected deposit to the extent that, under COMP 17, the firm does not have to identify an eligible claimant with respect to that protected deposit because the account is held by the account holder on behalf of others. (c) This paragraph applies with respect to a protected deposit that has been excluded from the single customer view because it is an account that is not active, as defined in COMP 17.2.3 R (2). 4 |
| Class B | General Insurance |
| Sub-class B1 | General Insurance Provision |
| Legal basis for activity in sub-class B1 | effecting contracts of insurance; and/or |
| that are general insurance contracts. | |
| Sub-class B2 | General Insurance Intermediation |
| Legal basis for activity in sub-class B2 | Any of the following in respect of general insurance contracts: |
agreeing to carry on a regulated activity which is within any of the above. | |
| Tariff base | Sub-class B1: Relevant net premium income and eligible gross technical liabilities. The levy is split into two in the ratio 75:25. The tariff base for the first portion (75%) is calculated by reference to relevant net premium income. The tariff base for the second portion (25%) is based on eligible gross technical liabilities.5 Eligible gross technical liabilities are calculated in accordance with the method for calculating gross technical liabilities in fee block A3 in part 2 of FEES 4 Annex 1 R with the following adjustments.5 (1) Eligible gross technical liabilities are calculated by reference to protected contracts of insurance with eligible claimants.5 (2) A firm may choose not to apply paragraph (1) and instead include all gross technical liabilities that it would be obliged to take into account for fee block A3 as long as the amount that it would include under (1) is lower.5 (3) If an incoming EEA firm does not report gross technical liabilities in the way contemplated by this table, the firm's gross technical liabilities are calculated in the same way as they would be for a UK firm. 5 (4) None of the notes for the calculation of fees in fee block A3 in part 2 of FEES 4 Annex 1 R apply except for the purposes of (2).5 (5) A directive friendly society must also calculate eligible gross technical liabilities in accordance with this table.5 (6) A non-directive friendly society must calculate gross technical liabilities as the amount that it is required to show in FSC 2 - Form 9 line 11 in Appendix 10 of IPRU(FSOC) (assets allocated towards the general insurance business required minimum margin) in relation to the most recent financial year of the firm (as at the applicable reporting date under FEES 6.5.13 R) for which the firm is required to have reported that information to the FSA under IPRU(FSOC). A non-directive friendly society must disregard for this purpose such amounts as are not required to be included by reason of a waiver or a written concession carried forward as an amendment to the rule to which it relates under SUP TP.5 |
| Sub-class B2: annual eligible income where 5annual eligible income means annual income adjusted in accordance with this table. Annual 5income is calculated 556 as the sum of (a) and (b):5 (a) the net amount retained by the firm of all brokerages, fees, commissions and other related income (for example, administration charges, overriders and profit shares) due to the firm in respect of or in relation to sub-class B2 activities, including any income received from an insurer; and5 (b) if the firm is an insurer, in relation to sub-class B2 activities, the amount of premiums receivable on its contracts of insurance multiplied by 0.07, excluding those contracts of insurance which result from sub-class B2 activities carried out by another firm, where a payment has been made by the insurer to that other firm and that payment is of a type that falls under (a).5 Notes relating to the calculation of the tariff base for sub-class B2:5 (1) Exclude annual income for pure protection contracts. Only include general insurance contracts.5 (2) The calculation is adjusted in accordance with the definition of annual eligible income.5 (3) Net amount retained means all the commission, fees, etc. in respect of sub-class B2 activities that the firm has not rebated to customers or passed on to other firms (for example, where there is a commission chain). Items such as general business expenses (for example, employees' salaries and overheads) must not be deducted.5 (4) Sub-class B2 activities mean activities that fall within sub-class B2. They also include activities that now fall within sub-class B2 but that were not regulated activities when they were carried out.5 (5) A reference to a firm also includes a reference to any person who carried out activities that would now fall into sub-class B2 but which were not at the time regulated activities. 5 |
| Class C | Life and Pensions |
| Sub-class C1 | Life and Pensions Provision |
| Legal basis for activity in sub-class C1 | effecting contracts of insurance; and/or |
| that are long-term insurance contract (including pure protection contracts). | |
| Sub-class C2 | Life and Pensions Intermediation |
| Legal basis for activity in sub-class C2 | Any of the following: |
agreeing to carry on a regulated activity which is within any of the above; | |
| in relation to any of the following: | |
| Tariff base | Sub-class C1: Relevant net premium income and eligible mathematical reserves. The levy is split into two in the ratio 75:25. The tariff base for the first portion (75%) is calculated by reference to relevant net premium income. The tariff base for the second portion (25%) is based on mathematical reserves. 5 Eligible mathematical reserves are calculated in accordance with the method for calculating mathematical reserves in fee block A4 in part 2 of FEES 4 Annex 1 R with the following adjustments.5 (1) Eligible mathematical reserves are calculated by reference to protected contracts of insurance with eligible claimants.5 (2) A firm may choose not to apply paragraph (1) and instead include all mathematical reserves that it would be obliged to take into account for fee block A4 as long as the amount that it would include under (1) is lower.5 (3) If an incoming EEA firm does not report mathematical reserves in the way contemplated by this table, the firm's mathematical reserves are calculated in the same way as they would be for a UK firm. 5 (4) None of the notes for the calculation of fees in fee block A4 in part 2 of FEES 4 Annex 1 R apply except for the purposes of (2).5 (5) A directive friendly society must also calculate eligible mathematical reserves in accordance with this table.5 (6) A non-directive friendly society must calculate mathematical reserves as the amount that it is required to show in FSC 2 - Form 9 line 23 in Appendix 10 of IPRU(FSOC) (total mathematical reserves after distribution of surplus) in relation to the most recent financial year of the firm (as at the applicable reporting date under FEES 6.5.13 R) for which the firm is required to have reported that information to the FSA under IPRU(FSOC). A non-directive friendly society must disregard for this purpose such amounts as are not required to be included by reason of a waiver or a written concession carried forward as an amendment to the rule to which it relates under SUP TP.5 (7) The provisions relating to pension fund management business in Part 2 of FEES 4 Annex 1 R do not apply. A firm undertaking such business that does not carry out any other activities within sub-class C1 (ignoring any activities that would have a wholly insignificant effect on the calculation of its tariff base for sub-class C1) must use its Long-term insurance capital requirement instead of gross technical liabilities. The Long-term insurance capital requirement means the amount that it is required to show as its Long-term insurance capital requirement in Form 2 Line 31 (Statement of solvency - Long-term insurance business) in relation to the most recent financial year of the firm (as at the applicable reporting date under FEES 6.5.13 R) for which the firm is required to have reported that information to the FSA.5 (8) The split in the levy between relevant net premium income and eligible mathematical reserves does not apply to a partnership pension society (as defined in Chapter 7 of IPRU(FSOC) (Definitions)). Instead the levy is only calculated by reference to relevant net premium income.5 |
| Sub-class C2: annual eligible income where annual eligible income means annual income adjusted in accordance with this table. Annual income is calculated as the sum of (a) and (b):5 (a) the net amount retained by the firm of all brokerages, fees, commissions and other related income (for example, administration charges, overriders and profit shares) due to the firm in respect of or in relation to sub-class C2 activities including any income received from an insurer; and;5 (b) if the firm is a life and pensions firm, in relation to sub-class C2 activities, the amount of premiums or commission receivable on its life and pensions contracts multiplied by 0.07, excluding those life and pensions contracts which result from sub-class C2 activities carried out by another firm, where a payment has been made by the life and pensions firm to that other firm and that payment is of a type that falls under (a).5 Notes relating to the calculation of the tariff base for sub-class C2:5 (1) Life and pensions contracts mean long-term insurance contracts (including pure protection contracts) and rights under a stakeholder pension scheme or a personal pension scheme.5 (2) Life and pensions firm means an insurer. It also means a firm that provides stakeholder pension schemes or personal pension schemes if those activities fall into sub-class D1.5 (3) The calculation is adjusted in accordance with the definition of annual eligible income.5 (4) Net amount retained means all the commission, fees, etc. in respect of sub-class C2 activities that the firm has not rebated to customers or passed on to other firms (for example, where there is a commission chain). Items such as general business expenses (for example, employees' salaries and overheads) must not be deducted.5 (5) Sub-class C2 activities mean activities that fall within sub-class C2. They also include activities that now fall within sub-class C2 but that were not regulated activities when they were carried out.5 (6) A reference to a firm also includes a reference to any person who carried out activities that would now fall into sub-class C2 but which were not at the time regulated activities. 5 |
| Class D | Investment |
| Sub-class D1 | Fund Management |
| Legal basis for activity in sub-class D1 | Any of the following: |
agreeing to carry on a regulated activity which is within any of the above. | |
| Sub-class D2 | Investment Intermediation |
| Legal basis for activity in sub-class D2 | Any of the following activities in relation to designated investment business |
agreeing to carry on a regulated activity which is within any of the above; | |
| BUT excluding activities that relate to long-term insurance contracts or rights under a stakeholder pension scheme or a personal pension scheme. | |
| Tariff base | Sub-class D1: 555annual eligible income where annual eligible income means annual income adjusted in accordance with this table. Annual income5 is equal to the net amount retained by the firm of all income due to the firm in respect of or in relation to activities falling within sub-class D1. 5 55, 5, 5 |
| Sub-class D2: 5555 annual eligible income where annual eligible income means annual income adjusted in accordance with this table. Annual income is equal to the net amount retained by the firm of all income due to the firm in respect of or in relation to activities falling within sub-class D2.5 | |
| 5Notes on annual eligible income for sub-classes D1 and D2: | |
(1) For the purposes of calculating annual income, net amount retained means all the commission, fees, etc. in respect of activities falling within sub-class D1 or D2, as the case may be, that the firm has not rebated to customers or passed on to other firms (for example, where there is a commission chain). Items such as general business expenses (for example employees' salaries and overheads) must not be deducted. | |
| 5(2) The calculation is adjusted in accordance with the definition of annual eligible income. | |
| 5(3) Box management profits are excluded from the calculation of annual income. |
| Class E | Home Finance |
| Sub-class E1 | Home Finance Provision |
| Legal basis for activity in sub-class E1 | Any of the activities below: |
agreeing to carry on a regulated activity which is within any of the above. | |
| Sub-class E2 | Home Finance Intermediation |
| Legal basis for activity in sub-class E2 | Any of the following activities: |
the activities of a home finance provider which would be arranging but for article 28A of the Regulated Activities Order (Arranging contracts or plans to which the arranger is party); | |
agreeing to carry on a regulated activity which is within any of the above. | |
| Tariff base | Sub-class E1: FSA periodic fees |
| Sub-class: E2: annual eligible income where the annual income is calculated in accordance with fee-block A18 in part 2 of FEES 4 Annex 1 R |
| Notes | |
| (1) | Any reference in this annex to a specified investment includes a reference to rights to or interests in investments in that specified investment. |
| (2) | 5In calculating annual eligible income a firm must apportion income between different sub-classes and between income that falls within the definition of annual eligible income and income that does not in a reasonable and consistent way and on the basis of clear policies.5 |
| 5(3) | The question of whether a person is an eligible claimant or not or whether a contract of insurance is a protected contract or not or whether business is compensatable business or not must be judged at whichever of the following dates the firm chooses: (a) (for a person who has become a new client during the period by reference to which the firm's tariff base is being calculated) the date on which the person becomes a client; (b) (for a person who has ceased to be a client during that period) the date on which the person ceases to be a client; or (c) (in any other case) the date to which the most recent information supplied by the firm under FEES 6.5.13 R is prepared. However this does not apply for the purpose of calculating the tariff base for class A (Deposits) so far as it relates to protected deposits.3 |
