Building Societies Fees

Fees

Building Societies (Authorisation) (Fees) Regulations 2007

Laid before Tynwald 21st March 2007 coming into operation 1 April 2007.

In exercise of the powers conferred on the Treasury by section 2(3) of the Building Societies Act 1986(a), and of all other enabling powers, the following Regulations are hereby made:-

Citation and commencement

1. These Regulations may be cited as the Building Societies (Authorisation) (Fees) Regulations 2007 and shall come into operation on 1st April 2007.

Interpretation

2. In these regulations, "building society" means a society within the meaning of section 7 of the Industrial and Building Societies Act 1892(b).

Annual fee

3. The annual fee to be paid by a building society under section 2 of the Building Societies Act 1986 is –

(a) £18,950 in respect of the grant of authorisation; and

(b) £12,850 in respect of the continuation of authorisation.

Proportionate fee formulae

4. For the purpose of regulation 3(a), the appropriate fee is calculated in accordance with the following formula:

£6,100 + F x N/12 where:

"F" is the fee less £6,100;

"N" is the number of months between the date on which the building society authorisation is granted and the next following 30 June and for this purpose a part of a month shall be treated as a complete month.

5. For the purpose of regulation 3(b), the appropriate fee is calculated in accordance with the following formula:

F x N/12

where:

"F" is the fee;

"N" is the number of months between the date on which the building society authorisation is granted and the next following 30 June and for this purpose a part of a month shall be treated as a complete month.

Revocation

6. The Building Societies (Authorisation) (Fees) (No.2) Regulations 2005(c) are revoked. _________________________________________________________________________

EXPLANATORY NOTE (This note is not part of the Regulations)

These regulations specify the fees to be paid by a building society when it is first granted authorisation and for the continuation of its authorisation.

Civil Penalties

The Financial Supervision Commission was given power to impose penalties by Tynwald in the Fiduciary Services Act 2005. This Act added powers to the Banking Act 1998, Building Societies Act 1986, Corporate Service Providers (“CSP”) Act 2000 and the Investment Business Act 1991, allowing the Financial Supervision Commission to make regulations to impose such penalties on its licenceholders as it deemed appropriate subject to Tynwald’s approval.

The Building Society (Civil Penalties) Regulations 2006 have been approved by Tynwald and come into operation on 1st November 2006. From that date regulatory “returns” (as defined within individual regulations) for all licenceholders will be covered by the Civil Penalties regulations.

To ensure that all sectors regulated by the Financial Supervision Commission are treated equally, Civil Penalties for banks, building societies, fiduciaries (including those CSPs and TSPs which are subject to the transitional arrangements) and investment businesses, will be subject to the same procedures.

It is the licenceholder’s responsibility to ensure their regulatory returns are submitted and received by the Financial Supervision Commission before the end of the submission period. Submission dates for the regulatory returns are detailed in the individual regulations.

For ease of reference a table detailing the reporting requirements for Building Societies can be found here.