FCA Fee Calculator - Firm Options

FSCS Exempt

A participant firm can be exempt from Financial Services Compensation Scheme (FSCS) if it does not conduct business that could give rise to a protected claim by an eligible claimant and has no reasonable likelihood of doing so.

Such a firm is exempt from a specific costs levy, or a compensation costs levy, or both.

This is provided that it has notified us in writing that those conditions apply and will continue to apply. An exemption form is available on our web site for firms to give notice.

A firm that has submitted a valid exemption (under FEES 6.3) will be excluded from Specific and Compensation levies, but will remain liable for a share of Base cost levies. Such FSCS exempt firms are not required to enter any FSCS tariff data.

Establishment costs ceased to be charged to all firms from 2005/06.

The exemption notice must be received by 31 March to take effect for the following and future levy years. The levy year starts on 1 April.

Firms who have already submitted an exemption notice need not do so again, but must notify us if the exemption no longer applies.

FOS Exempt

A firm can be exempt from the Financial Ombudsman Scheme (FOS) if it does not conduct business with eligible complainants and has no reasonable likelihood of doing so. See DISP 2.4 for further information.

Such a firm is exempt from FOS general levies (FEES 5.1.4 to FEES 5.7) if it has notified us in writing (by completing the exemption notice) that those conditions apply and will continue to apply. An exemption form is available on our web site for firms to give notice. Such FOS Exempt firms are not required to enter any FOS tariff data and will not be liable to pay any FOS general levies.

The exemption will take effect from the date that we receive the notice. We must receive it by the 31 March to take effect for the following and future levy years. The levy year starts on 1 April.

Firms who have already submitted an exemption notice need not do so again, but must notify us if the exemption no longer applies.

EEA Authorised

An incoming EEA (European Economic Area) firm which is conducting regulated activities in the UK under a BCD, IMD, ISD, UCITS Directive, third life directive and third non-life directive passport can either be:

  • an EEA Branch - EEA firm authorised by its home state regulator but has a branch in the UK;

  • or

  • an EEA Service - EEA firm authorised by its home regulator but operating on a cross-border services basis only.

Incoming EEA authorised firms are not required to participate in the FSCS in relation to their passported activities. As such they are not required to enter any FSCS tariff data or pay any FSCS levies unless they undertake insurance activities in the UK.

EEA Top-Up

EEA Authorised firms are not required to participate in the FSCS in relation to their passported activities.

They may apply to obtain the cover of, or 'top-up' into, the FSCS if there is no cover provided by the incoming EEA firm's home state compensation scheme or if the level or scope of the cover is less than that provided by the FSCS.

See COMP14 for further information.

APF

Authorised Professional Firm - a firm which is entitled to practise a profession regulated by a designated professional body and, in practising it, is subject to its rules.

The designated professional bodies are:

  • The Law Society (England and Wales) (LS);
  • The Law Society of Scotland (LSS);
  • The Law Society of Northern Ireland (LSNI);
  • The Institute of Chartered Accountants in England and Wales (ICAEW);
  • The Institute of Chartered Accountants in Scotland (ICAS);
  • The Institute of Chartered Accounts in Ireland (ICAI); or
  • The Association of Chartered Certified Accountants (ACCA);
  • The Institute of Actuaries (IoA);
  • Royal Institute of Chartered Surveyors (RICS); or
  • Council for Licensed Conveyancers (CLC).

An authorised professional firm that is subject to the rules of the Law Society (England and Wales) or the Law Society of Scotland is not a participant firm of the FSCS and as such is not required to enter FSCS tariff data or liable to pay FSCS levies.

OPS (Class (1) A Firm)

OPS (Occupational Pension Scheme) Firm - A firm whose regulated activities allocate it to the A007 fee-block and who is, within this fee-block, a Class (1) A firm.

That is:

  1. a firm which:
    1. carries on OPS activities; and
    2. is one or more of the following:
      1. a trustee of the occupational pension scheme in question;
      2. a company owned by the trustees of the occupational pension scheme in question;
      3. a company which is:
        1. an employer in relation to the occupational scheme in question for its employees or former employees or their dependents; or
        2. a company within the group which includes an employer with (I); or
        3. an administering authority subject to the Local Government Superannuation Regulations 1986: or
  2. a firm which:
    1. has satisfied the requirements set out in (a) at any time during the past 12 months; but
    2. is no longer able to comply with those requirements because of a change in the control or ownership of the employer referred to in (a)(ii) during that period.

A007 Not Holding Client Money or Assets, or both (Class (1) B firm)

A firm whose regulated activities allocate it to the A007 fee-block and who is not, within this fee-block,

  1. Class (1) A firm; and
  2. the firm's permission includes NEITHER of the following:
  3. the firm EITHER:
    • has a requirement that prohibits the firm from holding or controlling client money, or both; OR
    • if it does not have such a requirement, only holds or controls client money (or both), arising from an agreement under which commission is rebated to a client.

Credit Union

A body corporate registered under the Industrial and Provident Societies Act 1965 as a credit union in line with the Credit Unions Act, which is an authorised person. See CRED sourcebook for further information.

Wholesale Bank

A bank with permission to accept deposits from wholesale depositors only.

New Joiner

A firm who becomes directly authorised during the course of the financial year. This is split into monthly Discounts:

Month 1 – April
Month 2 – May
Month 3 – June
Month 4 – July
Month 5 – August
Month 6 – September
Month 7 – October
Month 8 – November
Month 9 – December
Month 10 – January
Month 11 – February
Month 12 - March

See FEES 4.2.6 for further information.

Firms who became directly authorised during the fee period are only required to pay the base cost element of the FSCS levy in their first fee period of authorisation and so will not be required to enter any FSCS tariff data. However, unless they submit a valid FSCS exemption, they will be liable for the full FSCS levy in future years.

Dual Regulated

A firm that is authorised by both the Financial Conduct Authority and the Prudential Regulation Authority. This will include firms such as deposit acceptors, insurance providers, Lloyd's managing agents and some principal dealers.

Credit Union or Community Finance Organisations

A Community Finance Organisation is a community benefit society, a community interest company limited by guarantee or a registered charity.

A Community benefit society is a society registered (or deemed to be registered) under the Industrial and Provident Societies Act 1965 which fulfils the condition in section 1(2)(b) of that Act or a society registered (or deemed to be registered) under the Industrial and Provident Societies Act (Northern Ireland) 1969 which fulfils the condition in section 1(2) of that Act.

A Registered charity is a charity:

(a) registered on the Charity Commission’s Register of Charities;
(b) registered on the Scottish Charity Register;
(c) registered on the Charity Commission of Northern Ireland’s Register of Charities; or
(d) that is or will be required to register on the register in (c) and which is recognised as a charity for tax purposes by Her Majesty’s Revenue and Customs.