New FCA authorisation, registration and Variation of Permission (VoP) application fee structure
January 11, 2022
What is happening to FCA authorisation, registration and VoP application fees?
In January 2022, the FCA set out, in its Policy Statement 22/1, the new structure for FCA authorisation, registration and VoP application fees that will come into effect from 24 January 2022.
How is this happening?
The FCA has allocated the new fees into ten pricing categories, as set out below.
Firms can review the FCA’s application fees page for information on the new fee categories, which cover firm authorisations, registrations and VoPs, registration under the Money Laundering Regulations and collective investment schemes.
- ‘Straightforward’ applications such as those including arranger/adviser/client money or assets permissions are increasing from £1,500 to £2,500.
- ‘Moderately Complex’ applications such as those including investment management/fund management/AIFM permissions are increasing from £5,000 to £10,000.
- ‘Complex’ applications such as those including MTF/OTF permissions are increasing from £25,000 to £50,000.
- A VOP application for a reduction in the scope of the applicant firm’s permissions and no increases in scope requires no VOP fee.
- The VOP application fee for an increase in the scope of the applicant firm’s permission, within the same FCA permission fee block, is increasing from £250 to £500.
- The VOP application fee to add a permission fee block/s that the applicant is not already in is 50% of the newly increased application for authorisation fee of the highest new fee block.
Consumer Credit firms
- ‘Limited permission’ applications (to be known in future as Category 2) are changing from £100 – £500 to £500.
- ‘Straightforward’ applications (to be known in future as Category 3)1 are changing from £600 – £5000 to £1,000.
1 This applies where firms apply for debt adjusting or debt counselling permissions, but with their activity limited to settlement sale of goods or settlement vehicle finance or the exclusion of debt management plans.
- ‘Moderately Complex’ applications (to be known in future as Category 5) are changing from £800 – £10,000 to £5,000.
- ‘Complex’ applications (to be known in future as Category 6) are changing from £1,000 – £15,000 to £10,000.
For a VoP for activity group CC1 – any applicant that already holds a limited permission and applies for
- Another limited permission activity – no fee is payable
- Any other credit-related permission – 100% of the highest pricing category relevant to the application is payable
- For a VoP for activity group CC2 – any applicant that already holds a permission within activity group CC2 and applies for another permission within CC2 – 50% of the highest pricing category is payable
Payment services and e-money firms
Payment services applications for FCA authorisation/registration are subject to the following fee amendments:
- Small Payment Institution – Pricing Category 2 (£500)
- Authorised Payment Institution – Pricing Category 4 (£2,500) or 5 (£5,000)
- Registered Account Information Service Provider – Pricing Category 3 (£1,000)
- Limited Network Exclusion/Electronic Communications Exclusion – Pricing Category 1 (£250)
Payment services firm Variation of Permission (VOP) FCA application fees will be as follows:
- API increasing its permissions – 50% of Pricing Category 4
- SPI increasing its permissions – 50% of Pricing Category 2
E-money applications for FCA authorisation are subject to the following fee amendments;
- Small EMI – Pricing Category 3
- Authorised EMI – Pricing Category 5
E-money firm Variation of Permission FCA application fees will be as follows:
- Authorised EMI increasing its services – 50% of Pricing Category 5
- Authorised EMI applying to vary its authorisation to provide one of both of the one or both of the payment services in paragraphs (g) and (h) of Part 1 of Schedule 1 to the Payment Services Regulations – 50% of Pricing Category 4
- Small EMI applying for a variation of registration – 50% of Pricing Category 3
The FCA has also consulted on introducing a new charge for applications under the senior managers regime and controlled functions for appointed representatives and will give further notice before it implements this.
How can we help you?
If you’d like to know more about how we can help you with your FCA fee payment arrangements, FCA authorisations or VoPs or with any other regulatory compliance issues, our specialist team is here to help.