A masterclass on approach to FSCS fees

The introduction of the so called “look through” rules in 2018 has had material consequences for firms acting as delegate investment managers,  which traditionally had little exposure to the FSCS levy. For many of these firms, the “look through” rules have not only required them to spend significant time conducting their FSCS levy calculation but has also triggered exponential increases in their FSCS levy fees.

Over the course of the last three years, many firms will have received letters from the FCA asking them to confirm their FSCS levy calculations. Firms which have failed to correctly calculate in previous years risk having to make remedial payments to the FSCS levy in respect of any fees, which were not paid due to incorrect calculations. The approach that firms take to their FSCS levy calculations is therefore critical.

The purpose of this session is to provide a practical guide for firms to assist their approach to calculating their FSCS levy. This course will focus in particular on the application of the “look through” rules and the data that firms need to consider when undertaking this calculation.

Key Learning Objectives:

• Understanding the FSCS levy calculation and the components of annual eligible income
• Applying the “look through” rules to delegate investment fund managers
• Identifying relevant income streams for the calculation of annual eligible income
• Assessing which income can be excluded from the FSCS levy and consideration of “double counting”
• Identifying eligible claimants and the obligation on firms to assess investors as eligible claimants

14:00 Introduction

• Introduction and background to FSCS fee changes.
• COMP 12A.3 and what it really means for UK UCITS managers, UK AIFMs, UK investment firms acting as delegate investment managers and “collective portfolio management investment” firms.
• The interplay of COMP 12A.3 with other related rules and concepts including the:
• “double look through” effect and COMP 12A.1.2R; and
• definition of “collective investment scheme”.

14:45 Tea/Coffee Break

15:00 Key concepts

• Territorial scope and COMP 12A.3
• Who is an eligible complainant?
• What are the components of annual eligible income and what income can be excluded from this calculation?

15: 45 Tea/Coffee Break

16:00 Scenarios and questions

• Discuss scenarios and examples (under Chatham House Rule)
• Opportunity to raise questions

Compliance managers, finance teams and in-house legal counsel

Alex Green - Macfarlanes LLP, Partner

Alex has over a decade of experience advising asset managers, wealth managers, banks, mortgage providers, insurers, corporate finance advisers and intermediaries on all aspects of their financial services regulatory obligations.

Alex’s practice includes advising on:

• new service and product launches, conduct of business obligations, product governance and the Consumer Rights Act 2015;
• regulatory restructurings, consolidation and acquisitions;
• perimeter questions;
• regulatory developments including recently MiFID II, SMCR, Brexit and ESG developments;
• distribution and outsourcing;
• client money and assets;
• a wide variety of applications to the FCA and PRA including more unusual applications such as unusual waivers and transfers under Part VII Financial Services and Markets Act 2000;
• handling rule breaches and communication with the FCA and PRA;
• corporate governance, systems and controls; and
• anti-money laundering obligations.

Louise Bralsford - Macfarlanes LLP, Senior Associate

Louise advises a range of clients on regulatory issues, including asset managers and wealth managers, private clients, family offices and hedge fund managers.

Louise has experience advising in relation to regulatory developments including the implementation of EU regulation including MiFID II, CRD IV, UCITS and AIFMD. In particular, Louise has experience advising private clients, charities and educational establishments in respect of how the regulatory regime applies to their specific circumstances. More generally, Louise regularly advises financial services providers both in relation to ongoing compliance and larger projects, recent examples being projects in relation to the implementation of the Senior Managers & Certification Regime for a number of clients, and a redraft of terms of business for an authorised firm.

She has also advised in relation to a wide range of funds including OEICs, AUTs and ACSs (authorised and unauthorised, NURS/UCITS/QIS), real estate investment trusts, money market funds, charity funds (including CAIFs, CIFs and CDFs), pension fund pooling schemes, and tax efficient structures such as exempt unauthorised unit trusts.

Louise also frequently deals with regulatory matters arising in relation to private equity and M&A matters on complex transactions with key regulatory elements including regulatory consents.

IA Member £395.00 +VAT
Non-Member £545.00 +VAT

Pay using a credit card online, or if you wish to be invoiced please email your full details to: Training@theia.org

PLEASE NOTE: Full payment for the course must be made prior to the course commencement date.

Any cancellation must be made in writing. For all cancellation received 15-30 days prior to the course start date, 50% of the course fee is still payable. No refund is given for a cancellation made 14 days or less prior to the commencement of a course. Transferring from one course to another is treated as a cancellation. You can substitute one delegate for another at no additional cost. In this instance, please give two business days’ notice.

Hybrid Training Courses:

Hybrid deliveries of our training allows participants on our courses the option to attend in-person here from our offices at Camomile Court, or you can attend virtually via MS Teams.

Please be advised a training course could change from hybrid delivery to solely virtual delivery. In such an event, we will inform delegates at least one week prior to the course delivery date.

There are a limited number of in-person spaces available on this course and this will be allocated on a first come first served basis.