FCA FOS Fees Declaration

RWA has recently received queries regarding the completion of Section J of the Gabriel form. We would like to provide clarity on this.

For FCA Fees, annual income is effectively all brokerages, commissions, fees and other relevant income (i.e. admin charges, overrides, profit shares etc) due to you from any Insurance Distribution Activity (see definition below), plus the fair value of services you provide in relation to which you waive or discount your normal charges.

Insurance Distribution = the activities of advising on, proposing or carrying out other work preparatory to the conclusion of contracts of insurance, of concluding such contracts, or of assisting in the administration and performance of such contracts, in particular in the event of a claim, including the provision of information concerning one or more insurance contracts in accordance with criteria selected by customers through a website or other media and the compilation of an insurance product ranking list, including price and product comparison, or a discount on the price of an insurance contract, when the customer is able to directly or indirectly conclude an insurance contract using a website or other media.

Note: This figure DOES NOT include any commission you receive from Premium Finance as this is declared separately in the appropriate CC002 return which relates purely to credit broking activity.

For FOS levy: This is the income you receive from consumers (see definition below) or in other words, private individuals that are eligible complainants. If you are entirely in the retail consumer space (private individuals) then the figure here would be the same as the figure you calculate for FCA fees (above).  You are not required to include any income from commercial clients (firms) even though they may be eligible to pursue a grievance with FOS. If all regulated income is from ‘firms’ (non-private), then the FOS figure would be nil.

A consumer – a person acting outside of their trade or profession.

For FSCS, your eligible income is again driven by those of your clients that are able to levy a claim with FSCS should your business fail. This figure is derived from all income from customers (NOT JUST CONSUMERS – SEE ABOVE) who are eligible to make a claim to FSCS and also have products that are eligible for the FSCS. Remember, it is not the product alone which determines FSCS eligibility but the type of customer.

For more information contact your RWA Consultant or have a look here: Gabriel Data Item J

About the author

Peter is a Regional Business Manager at RWA and assists clients with their regulatory needs. He has also helped several new start-ups by overseeing their authorisation process.

Peter has a background in sales and training.

Get RWA Insight In Your Inbox

Regular business news and commentary delivered direct to your inbox each week. Sign up here