Fees

Part

CIS Collective Investment Schemes

Chapter

Printed on: 13/06/2024

Rulebook at: 01/05/2005

CIS 18

Fees

CIS 18.1

Introduction

01/12/2004

Application

CIS 18.1.1

This chapter applies to:

(1) every person seeking an authorisation order for, or recognition of, a collective investment scheme;

(2) every manager of an authorised unit trust;

(3) every ACD of an ICVC; and

(4) every person who, under the constitution or founding arrangements of a recognised scheme, is responsible for the management of the property held for or within the scheme;

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Purpose

CIS 18.1.2

The purpose of this chapter is to set out the requirements for the payment of fees relating to collective investment schemes.

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Background

CIS 18.1.3

GEN 3 (FSA Fees ? General Provisions) applies to fees required by this chapter and explains how the FSA sets fees.

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CIS 18.1.4

Most of the detail of the fees payable in relation to a collective investment scheme is set out in CIS 18 Annex 1 R. The provisions of the Annex may vary from one financial year to another. Accordingly a fresh CIS 18 Annex 1 R will come into force, following consultation, for each financial year.

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CIS 18.1.5

The fees for collective investment schemes reflect the estimated costs to the FSA of assessing applications and notifications, considering proposals to change regulated collective investment schemes, maintaining up to date records about them, and related policy work.

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CIS 18.1.6

The level of fees payable in respect of an application or a notification will vary depending upon the provision of the Act under which it is made. This fee is adjusted when the scheme concerned is an umbrella scheme.

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CIS 18.2

Obligation to pay periodic fees

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General

CIS 18.2.1

A person identified in CIS 18 Annex 1 R as the relevant fee payer for a regulated collective investment scheme must pay each periodic fee applicable to it in full and without deduction.

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CIS 18.2.2

A relevant fee payer will be required to pay a periodic fee for every year during which a regulated collective investment scheme has that status. If that person is the relevant fee payer for more than one regulated collective investment scheme, he will be required to pay a fee in relation to each.

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Due date

CIS 18.2.3

The relevant fee payer must pay the amount due on or before 30 April.

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Method of payment

CIS 18.2.4

A periodic fee must be paid using one of the payment methods specified in SUP 20.2.7A R.

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Modifications for newly authorised or recognised schemes

CIS 18.2.5

If an authorisation order is made in relation to a scheme, or a scheme becomes a recognised collective investment scheme during the course of a financial year to which a CIS 18 Annex 1 R applies:

(1) the periodic fee required under CIS 18.4 is modified in accordance with Table CIS 18.2.6 R; and

(2) the due date for payment is 30 days after:

(a) the making of the authorisation order for the scheme; or

(b) the scheme becomes recognised.

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CIS 18.2.6

Modified fees for newly authorised or recognised schemes

This table belongs to CIS 18.2.5 R

Period in which authorisation or recognition is granted

a) Proportion of periodic fee payable

1 April to 30 June inclusive

100%

1 July to 30 September inclusive

75%

1 October to 31 December inclusive

50%

1 January to 31 March inclusive

25%

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CIS 18.3

Obligation to pay notification and application fees

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General

CIS 18.3.1

The person identified in CIS 18 Annex 2 R as the relevant fee payer must pay each fee applicable to any application or notification as specified in CIS 18 Annex 2 R.

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Due date

CIS 18.3.2

The relevant fee payer must pay a fee identified in CIS 18 Annex 2 R on or before the date on which the relevant application or notification is made.

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CIS 18.3.3

Any application or notification, for which a fee is payable under this section, will be treated as incomplete until that fee is paid.

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Method of payment

CIS 18.3.4

A fee identified in CIS 18 Annex 2 R must be paid by bankers draft, cheque or other payable order.

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CIS 18 Annex 1

Periodic fees payable for the period 1 April 2004 to 31 March 2005 Fees payable in relation to the period from 1 April 2005 to 31 March 2006The provisions relating to collective investment scheme fees are set out in FEES 1, 2, 3 and 4

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Nature and purpose of fee

Payable by

Amount of fee

Umbrella scheme factor (note 1)

Periodic fee for an ICVC

The authorised corporate director

£1,100

Periodic fee for an AUT

The manager

£1,100

Periodic fee for a scheme recognised under section 264 of the Act

The operator

£1,100

Periodic fee for a scheme recognised under section 270 of the Act

The operator

£1,100

Periodic fee for a scheme recognised under section 272 of the Act

The operator

£6,400

For an umbrella scheme the fee is multiplied by the factor shown in the final column of the table.

Part 1 - Periodic fees payable

Scheme type

Basic fee (£)

Total funds/sub-funds aggregate

Fund factor

2005/06 fee (£)

ICVC
AUT
Section 264 of the Act
Section 270 of the Act

610

1-2
3-6
7-15
16-50
>50

1
2.5
5
11
22

610
1,525
3,050
6,710
13,420

Section 272 of the Act

2,500

1-2
3-6
7-15
16-50
>50

1
2.5
5
11
22

2,500
6,250
12,500
27,500
55,000

Fees are charged according to the number of funds or sub-funds operated by a firm as at 31 March 2005. Where more than one fund or sub-fund is operated the number of funds (not including the umbrella or parent fund) produces a 'fund factor' in accordance with the table above which is then applied to a basic fee to produce one total fee per operator. Fund factors are applied per operator rather than per scheme so that the fees relate to the number of funds rather than the number of schemes. This means that, for example, an authorised fund manager of three schemes pays the same as an operator or authorised fund manager of one scheme with three sub-funds (as only the sub-funds are counted).

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CIS 18 Annex 2

Application and notification fees payable The provisions relating to collective investment scheme fees are set out in FEES 1, 2, 3 and 4

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Legislative provision

Nature and purpose of fee

Payable by

Amount of fee

Umbrella scheme factor (note 1)

Regulation 12 of the OEIC Regulations

On application for an order declaring a scheme to be an ICVC

An applicant (note 2)

£1,200

Section 242 of the Act

On application for an order declaring a scheme to be an AUT

An applicant (note 2)

£1,200

Section 264 of the Act

On giving notice under section 264 of the Act

The operator (note 3)

£600

Section 270 of the Act

On giving notice under section 270 of the Act

The operator (note 3)

£600

Section 272 of the Act

On application for an order declaring a scheme to be an individually recognised overseas scheme

An applicant (note 2)

£14,000

Notes:

For an umbrella scheme the fee is multiplied by the factor shown in the final column of the table.

The fee must accompany the application.

The fee must accompany the notice.

01/04/2004