FCA Fee Calculator - Frequently Asked Questions

Section 1: Select Firm Exemptions
What is the FSCS?
How do I know if my firm is exempt from the FSCS?
What is the FOS?
How do I know if my firm is exempt from the FOS?
I think my firm is exempt from the FSCS and/or FOS; do I need to tell the FSA?
What does being exempt mean?

Section 2: Select Fee-Blocks
How do I know which FSA fee-blocks to select?
Where are the FSCS & FOS fee-blocks?
Why is the FSCS A016 fee-block the only FSCS fee-block available for selection?

Section 3: Select Firm Options
Why can't I select some of the options shown with Section 3?
How do I know if an option affects my firm?

Section 4: Input Tariff Data
What does tariff data mean?
How do I know what tariff data to enter?
What are the tariff bases?

Glossary for List of Tariff Bases

Calculation Sheet
How do I print my calculation results?


Section 1: Select Firm Exemptions

What is the FSCS?

The Financial Services Compensaton Scheme (FSCS) began operating on 1 December 2001 when The Financial Services and Markets Act (FSMA) came into force. The FSCS covers claims against firms where they are unable, or likely to be unable, to pay them. In general, this is when a firm is insolvent or has gone out of business.

The FSCS has the power to compensate consumers if any firm authorised under FSMA (or any participating EEA firm) fails. It covers insurance companies, deposit-takers and investment firms.

Back to top

How do I know if my firm is exempt from the FSCS?

A firm is exempt from the FSCS if it does not conduct business that could give rise to a protected claim by an eligible claimant. An eligible claimant is a person who is eligible to bring a claim for compensation under COMP 4.2.1.

NOTE: Exempt firms will still be liable to pay base costs towards the FSCS levy. These are the operating costs not directly related to the payment of compensation. For a full break down of the costs associated with the FSCS levy please read our FSCS guidance notes.

Back to top

What is the FOS?

The Financial Ombudsman Service (FOS) resolves disputes between consumers and firms and provides a simple, informal and accessible alternative to the courts. The FOS covers complaints against authorised firms about their regulated activities and certain specified other financial services activities.

It is free of charge for complainants. The FOS's decisions are based on what is 'fair and reasonable' and are binding on firms if a complainant accepts them.

Back to top

How do I know if my firm is exempt from the FOS?

A firm is exempt from the FOS if it does not conduct any business with eligible complainants, as defined under our rules (DISP 2.4.3R). An exempt firm will not pay any levy to the FOS. Please read our associated FOS guidance notes for further information on this.

Back to top

I think my firm is exempt from the FSCS and/or FOS; do I need to tell the FSA?

If you have not previously told us your firm is exempt from the FSCS and/or FOS, please complete the relevant exemption notifications for FSCS and/or FOS. Once we have received your notification, we will contact your FSA supervisor. If they confirm the exemption applies, your firm won't have to pay the relevant levies. If you have already told us that you are exempt from either the FSCS and/or FOS levy, you do not need to tell us again, as exemption will carry over to each fee year.

NOTE: Exempt firms will still be liable to pay base costs towards the FSCS levy. These are the operating costs not directly related to the payment of compensation. For a full breakdown of the costs associated with the FSCS levy, please read our FSCS guidance notes.

You must send us the exemption notification form by 31 March to qualify for exemption for the following financial year. If we receive forms after this, your firm will not be exempt for the current fee year – the exemption will only apply to any following years.

Back to top

What does being exempt mean?

The FSCS levy is broken into three parts: base costs; specific costs and compensation costs. If your firm is exempt from the FSCS levy, you will not pay specific or compensation costs, but will still be liable to pay base costs.

The specific costs are the operating costs directly related to the payment of compensation; compensation costs provide the funds to pay any compensation payments. As these two costs are directly related to the payment of compensation, exempt firms will not pay towards them.

Base costs are the operating costs not directly related to the payment of compensation. All firms, including exempt firms, will be liable for this part of the FSCS levy and will see this on their fees calculation.

Back to top


Section 2: Select Fee-Blocks

How do I know which FSA fee-blocks to select?

Each fee-block is assigned a unique code as shown within Section 2 of the fees calculator. Next to each fee-block, a description portrays the type of firm and or business activity it covers. Please select the fee-blocks that cover your firm's regulated business activity.

TIP: If you leave the mouse cursor over the fee-block code a help box will appear, describing the relevant fee-block. Clicking on the fee-block code, or the help icon on the right-hand side of the page, will take you to a new screen providing a detailed classification of the highlighted fee-block.

If your firm has previously received a periodic fee invoice you can use the invoice to identify which fee-blocks and industry-blocks the firm falls into. These fee-blocks and industry-blocks will remain the same if the firm has not made any changes to its part IV permission since that invoice.

Back to top

Where are the FSCS & FOS fee-blocks?

If you have selected an exemption to either or both the FSCS and FOS within Section 1, the FSCS fee-blocks and/or FOS industry-blocks will not be shown. You will only have to select the relevant FSA fee-blocks.

The FSCS fee-blocks are directly associated with the FSA fee-blocks. So the fees calculator will automatically assign the relevant FSCS fee-block to the FSA fee-block you have selected. The exception to this is the A016 FSCS fee-block (Pensions Review Levy) which is not associated with any FSA fee-block. If it applies, you will have to manually select this fee-block. Within Section 3 the firm will be asked for data to calculate the FSCS levy for each FSA fee-block selected if the firm is not exempt.

The FOS industry-blocks are also related to the FSA fee-blocks; however, they are not automatically assigned to your firm. So once you select an FSA fee-block, the associated FOS industry-block(s) will appear within Section 2. Then select the FOS industry-block that applies to your firm. If you don't select a FOS industry-block the fees calculator will not provide a FOS levy calculation for it. Once you've selected the relevant industry-block(s), in Section 3 we will ask you for data to calculate the FOS levy for each industry-block selected.

Back to top

Why is the FSCS A016 fee-block the only FSCS fee-block available for selection?

The FSCS A016 fee-block is the only FSCS fee-block that is not directly associated with any FSA fee-block. It refers to firms that paid compensation levies to the Personal Investment Authority (PIA – one of our predecessor regulators) in 2001. As this fee-block is not associated with any FSA fee-block, you will have to manually select it if it applies to your firm. If you are unsure whether the A016 FSCS fee-block applies, look at last year's invoice – if it includes the FSCS A016 fee-block then you need to select it again for following year and the tariff data will be the same.

Back to top


Section 3: Select Firm Options

Why can't I select some of the options shown with Section 3?

Some elements of Section 3 will not apply to all firms. The selections made within Sections 1 and 2 will determine which options are available. You will only have to complete those that are relevant in Section 3.

Section 3 is designed so that only the options that apply to the selections you made in previous sections will be relevant. If an option you believe applies to your firm is greyed out, you may not have selected the appropriate fee-blocks in Section 2. Changing the selected fee-blocks within Section 2 will alter the options available within Section 3.

Back to top

How do I know if an option affects my firm?

Help boxes are available for each of the options within Section 3. Hovering over the red text will provide a help box giving more detail of the particular option. Clicking on the red text will display a more detailed description of the relevant option. This will provide further detail of the particular option and clarify if it would apply to your firm.

For reference, the FS register provides a list of your firm's permissions and any associated limitations of regulated activity. The details on your firm in the FSA register may help you understand which options apply to your firm.

Back to top


Section 4: Input Tariff Data

What does tariff data mean?

Tariff data is the information that is required to calculate your fees and levies. So the fees calculator requires it to apply the relevant fee rates to the fee-blocks selected. Tariff data varies in its form depending on the fee-blocks you have highlighted within Section 2. Each fee-block is assigned a tariff base which describes the tariff data required for the associated fee-block.

Back to top

How do I know what tariff data to enter?

Each fee-block has an associated tariff base – these are shown in Section 3. Clicking on the tariff base will display a detailed description of the data that we require to calculate your fees.

Firms that received a periodic fee invoice last year can use the invoice received as a good reference point. The calculation sheet included with each invoice contains the tariff data used to calculate that particular fee. This is a good guide on what data to enter, and the same data can of course be used if you require a quick calculation.

Firms that did not receive an invoice last year can use the help files associated with each tariff base as stated above.

If you do not enter any tariff data, the fees calculator cannot calculate a relevant fee. If your tariff data is zero, please enter 0.

Back to top

What are the tariff bases?

The tariff bases are unique codes associated to a particular fee-block. Each fee-block code has an associated tariff base. A full description of each tariff base is shown below. The tariff base list can help you enter tariff data in Section 3. You should use it as a reference if you do not understand the abbreviated tariff base shown in Section 4.

Back to top


Glossary for List of Tariff Bases

MEL – Modified Eligible Liabilities
NOM – Number of Mortgages entered into and administered
GPI – Gross Premium Income
GTL – Gross Technical Liabilities
RNPI-A3 – Relevant Net Premium Income (General Insurance)
AGPI – Adjusted Gross Premium Income
MR – Mathematical Reserves
AC – Active Capacity
FUM – Funds under Management
GI – Gross Income
NOT – Number of Traders
CF21-26 – Approved Persons holding Control Function CF21, CF22, CF24, CF25 and/or CF26
CF23 – Approved Persons holding Control Function CF23
PPCL – PIA Pensions Compensation Levy
AI-A018 – Annual Income in relation to Mortgage Mediation
AEI-A018 – Annual Eligible Income in relation to Mortgage Mediation
AI-A019 – Annual Income in relation to General Insurance Mediation
AEI-A019 – Annual Eligible Income in relation to General Insurance Mediation
NORA – Number of Relevant Accounts
RAGPI-I2 – Relevant Adjusted Gross Premium Income (General Insurance)
RAGPI-I4 – Relevant Adjusted Gross Premium Income (Life Insurance)
RFUM – Relevant Funds under Management
RGI – Relevant Gross Income
NORT – Number of Relevant Traders
RCF21-16 – Relevant Approved Persons holding Control Function CF21, CF22, CF24, CF25 and/or CF26
RCF23 – Relevant Approved Persons holding Control Function CF23
RAGPI-I13 – Relevant Adjusted Gross Premium Income (Cash Plan Health Providers)
GA – Gross Assets
RAGPI-I15 - Relevant Adjusted Gross Premium Income (Friendly Societies) – Gross Assets
RBA1-1016 – Relevant Business Annual Income in relation to Mortgage Mediation
RBA1-1017 – Relevant Business Annual Income in relation to General Insurance Mediation

Back to top


Calculation Sheet

How do I print my calculation results?

A printable version of the calculation sheet is available by clicking on the link shown on top of the calculation sheet. This will include which fee blocks and industry blocks you have selected and the tariff data entered. It will also provide detailed calculation breakdowns for each fee block, including any discounts and/or deductions that may apply.

Back to top