Here we explain the fees that firms and investment funds in the temporary permissions regime (TPR) will need to pay.
We recover our annual funding requirement (AFR) through periodic fees, paid annually in each fee-year (our fee-year runs from 1 April to 31 March). We consult each year, in April, on the allocation of the AFR across a series of fee-blocks that reflect broad sectors of the industry and are based on the regulated activities firms undertake in the UK. Investment funds have a separate fee-block within this series.
The AFR we recover from periodic fees is net of the contribution to our costs made by applicants for authorisation/recognition.
Find out more about our fees.
Annual (periodic) fees
We consulted on the basis that firms and funds in the TPR will pay periodic fees in Consultation Paper CP18/29. After considering the responses to this consultation we decided not to require TP firms to report tariff data (measure of size) relating to business they undertake on a cross-border services basis.
- TP branch firms would continue to pay the minimum fees and variable fees on the tariff data above the minimum size thresholds but fees discounts would not apply.
- TP cross-border service firms would only pay the minimum fees (previously they paid no periodic fees).
- Funds would pay periodic fees on the same basis as they did prior to entering the TPR.
Further details are included in our Policy Statement PS19/5.
The basis that firms and funds in the TPR will pay periodic fees set out in CP18/19 and PS19/5 will apply in the fee-year following the end of the transition period. For example, if the transition period ends on 31 December 2020 then the following fee-year will be 2021/22.
The instrument setting out fees for TP firms will be revised for the period after 31 December 2020.
Find out more about the periodic fees cycle.
Applicants pay authorisation/recognition fees when they submit their applications.
The level of authorisation/recognition fees depends on the type of regulated activities the applicant is seeking permission to undertake and for funds depends on the type of fund and number of sub-funds.