FSA Fees: General Provisions

Part

GEN General Provisions sourcebook

Chapter

FSA Fees: General Provisions

Printed on: 06/11/2024

Rulebook at: 01/06/2005

GEN 3

FSA Fees: General Provisions

GEN 3.1

Introduction

01/12/2004

Application

GEN 3.1.1

This chapter applies to every person who is required to pay a fee to the FSA by a provision of the Handbook.

17/01/2002

GEN 3.1.2

GEN 3.2.1 R and GEN 3.3.1 R do not apply in respect of any fee payable under AUTH 4 (Authorisation fees), REC 7 (Recognised bodies fees), SUP 6.3.22 R (Application fee for variation of permission), COLL 10 (Fees); or CIS 18 (Collective investment schemes fees) on the making of an application or a notification.

01/04/2004

GEN 3.1.3

The chapters referred to in GEN 3.1.2 R treat applications as incomplete until the relevant fee is paid.

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Purpose

GEN 3.1.4

The purpose of this chapter is to set out the general provisions applicable to those who are required to pay fees to the FSA. The requirements themselves are set out in the parts of the Handbook to which the fees concerned relate.

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Background

GEN 3.1.5

Paragraph 17 of Schedule 1 to the Act enables the FSA to charge fees to cover its costs and expenses in carrying out its functions.

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GEN 3.1.6

The provisions of this chapter set out the general provisions applicable to the fees regime. Most of the detail of what fees are payable, and the related requirements, will appear in the part of the Handbook to which they relate. If a sourcebook or manual contains requirements which impose fees or other payments, a schedule of those fees or other payments is included in that sourcebook or manual.

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GEN 3.1.7

The fees payable will vary from one financial year to another, and will reflect the FSA's funding requirement for that period and the other key components, as described in GEN 3.1.8 G. Periodic fees, which will normally be payable on an annual basis, will provide the majority of the funding required to enable the FSA to undertake its statutory functions.

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GEN 3.1.8

For periodic fees, the key components of the fee mechanism are:

(1) a funding requirement derived from:

(a) the FSA's financial management and reporting framework;
(b) the FSA's budget;
(c) adjustments for audited variances between budgeted and actual expenditure in the previous accounting year, and reserves movements (in accordance with the FSA's reserves policy);

(2) mechanisms for applying penalties received during previous financial years for the benefit of fee payers;
(3) fee-blocks, which are broad groupings of fee payers offering similar products and services and presenting broadly similar risks to the FSA's regulatory objectives;
(4) a costing system to allocate an appropriate part of the funding requirement to each fee-block; and
(5) tariff bases, which, when combined with fee tariffs, allow the calculation of fees.

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GEN 3.1.9

The amount payable by each fee payer will depend upon the category (or categories) of regulated activity or exemption applicable to that person (fee blocks). It will, in most cases, also depend on the amount of the business that person conducts in each category (fee tariffs).

17/01/2002

GEN 3.1.10

By basing fee-blocks on categories of business, the FSA aims to minimise cross-sector subsidies. The membership of the fee-blocks is identified in the Handbook provisions relating to the type of fees concerned.

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GEN 3.1.11

Paragraph 17(2) of Schedule 1 to the Act prohibits the FSA from taking account of penalties received when setting its periodic and other fees. Accordingly periodic fees are specified without reference to the penalties received. However, the FSA normally expects to allocate those penalties to the fee-blocks within which the penalty payers fall, by way of a deduction from the periodic fee. Any deductions of this sort are set out in the relevant fees provisions.

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GEN 3.2

Late Payments and Recovery of Unpaid Fees

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Late Payments

GEN 3.2.1

If a person does not pay the total amount of a fee on the date on which it is due under the relevant provision in the Handbook, that person must pay an additional amount as follows:

(1) if the fee was not paid in full before the end of the due date, an administrative fee of £250; plus
(2) if the fee was not paid in full before the end of 15 days after the due date, interest on any unpaid part of the fee at the rate of 5% per annum above the Bank of England's repo rate from time to time in force, accruing on a daily basis from the date on which the amount concerned became due.

17/01/2002

GEN 3.2.2

The FSA expects to issue invoices for periodic fees at least 30 days before the date on which they fall due. Accordingly it will generally be the case that a person will have at least 30 days from the issue of the invoice before an administrative fee becomes payable, and at least 45 days before any interest becomes payable.

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GEN 3.2.3

GEN 3.2.1 R relates only to periodic fees.

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Recovery of Fees

GEN 3.2.4

Paragraph 17(4) of Schedule 1 to the Act permits the FSA to recover fees as a debt owed to the FSA and the FSA will consider taking action for recovery through the civil courts.

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GEN 3.2.5

In addition, the FSA may be entitled to take regulatory action. What action (if any) that is taken by the FSA will be decided upon in the light of the particular circumstances of the case.

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GEN 3.3

Relieving Provisions

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Extension of Time

GEN 3.3.1

A person need not pay a fee on the date on which it is due under the relevant provision in the Handbook, if:

(1) that date falls during a period during which circumstances of the sort set out in GEN 1.3.2 R (Emergencies) exist, and that person has reasonable grounds to believe that those circumstances impair its ability to pay the fee, in which case he must pay on or before the fifth business day after the end of that period; or
(2) unless SUP 20.2.7 R (4) or SUP 20.2.7 R (5) (Time and method for payment) applies, that date would otherwise fall on or before the 30th day after the date on which the FSA has sent written notification to that person of the fee payable on that date, in which case he must pay on or before the 30th day after the date on which the FSA sends the notification.

01/06/2004

GEN 3.3.2

GEN 3.3.1 R relates only to periodic fees.

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Remission of Fees

GEN 3.3.3

If it appears to the FSA that, in the exceptional circumstances of a particular case, the payment of any fee would be inequitable, the FSA may reduce or remit all or part of the fee in question which would otherwise be payable.

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GEN 3.3.4

If it appears to the FSA that, in the exceptional circumstances of a particular case to which GEN 3.3.3 R does not apply, the retention by the FSA of a fee which has been paid would be inequitable, the FSA may refund all or part of the fee.

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