30 Apr FSCS & FOS Fees
As you are no doubt aware the definition of small business has changed in the FCA Complaints Source book (DISP). This now includes
o Charity which has an annual income of less than £6,500,000 at the time the complainant refers the complaint to the firm
o Trustee which has a net asset value of less than £5,000,000 at the time the complainant refers the complaint to the firm.
o Small Business at the time the complainant refers the complaint to the firm. To be a Small business the firm must fall below the following turnover threshold and either the balance sheet OR headcount threshold:-
a. annual turnover of £6,500,000
c. Annual Balance sheet total of £5,000,000 or
d. Headcount of 50 people
However, for the purposes of calculating the fees, the FCA has not amended the definition. Therefore on your regulatory return the income for the FOS fee block is income generated from Consumer Business Only.
The definition of those who are eligible to benefit from the protection provided by the FSCS is detailed in the FCA handbook in Comp 4.2 https://www.handbook.fca.org.uk/handbook/COMP/4/2.html The definition of small business in COMP has not changed and still states:
A small business is: “a partnership, body corporate, unincorporated association or mutual association with an annual turnover of less than £1 million (or its equivalent in any other currency at the relevant time”
To summarise – there has been no change to the income that needs to be declared when submitting your regulatory return.