FSA Annual Report 2006/07 - Better Regulation Ltd
FSA Annual Report 2006/07 - Better Regulation Ltd FSA Annual Report 2006/07 - Better Regulation Ltd
Section five – Statement of allocation of costs FSA Annual Report 2006/07 97 While adopting IAS 19 provides greater transparency of the impact of pension costs on our financial position, it introduces significant volatility into both the figures reported in our income statement and in our balance sheet. In order to prevent IAS 19 transmitting this volatility into our fee calculations, we exclude any non-cash elements of pension costs from our Annual Funding Requirement (AFR). The main non-cash item excluded is the net finance cost £1m. Our AFR is calculated to include only the cash value of the pension contributions we need to make in a year to cover the increase in the scheme’s final salary liabilities due to additional years’ service and to salary increases. Also, the AFR includes any deficit reduction contributions aimed at reducing the size of the scheme’s deficit to ensure that it can meet its obligations. This is consistent with the fact that, as mentioned above, we have not allocated the pensions liabilities to fee blocks. Full details of the calculation of the AFR for 2007/08 are included in Consolidated Policy Statement on our fee-raising arrangements and regulatory fees and levies 2007/08, including feedback on CP07/3 and ‘made rules’, published in May 2007.
98 Section five – Statement of allocation of costs FSA Annual Report 2006/07 Statement of allocation of costs for the year ended 31 March 2007 Fee Block Net assets/ (liabilities), Net assets, Funding excluding excluding pensions principles- pensions obligation, at Net costs Pensions Fees for based obligation, at 1 April 2006 for the year amortisation the year regulation 31 March 2007 £m £m £m £m £m £m A.1 Deposit acceptors 3.3 (52.8) (0.9) 58.4 (3.0) 5.0 A.2 Mortgage lenders and administrators (0.6) (5.6) (0.1) 5.8 (0.3) (0.8) A.3 General insurers (0.8) (14.2) (0.3) 15.8 (0.8) (0.3) A.4 Life insurers 1.0 (39.4) (0.7) 40.8 (2.2) (0.5) A.5 Lloyd’s Managing Agents (0.2) (1.0) – 0.8 (0.1) (0.5) A.6 The society of Lloyd’s 0.1 (1.0) – 1.1 (0.1) 0.1 A.7 Fund managers 1.8 (24.6) (0.4) 26.6 (1.4) 2.0 A.9 CIS operators, trustees and depositories 0.5 (3.3) (0.1) 4.7 (0.2) 1.6 A.10 Firms dealing as principal 0.1 (14.4) (0.3) 12.9 (0.8) (2.5) A.12 Advisory arrangers holding client money and/or assets 0.3 (18.0) (0.3) 17.8 (1.0) (1.2) A.13 Advisory arrangers not holding client money and/or assets 2.8 (37.9) (0.7) 36.3 (2.1) (1.6) A.14 Corporate Finance Advisors 0.8 (5.5) (0.1) 5.5 (0.3) 0.4 A.18 Mortgage lenders, advisers, and arrangers (1.1) (11.0) (0.2) 10.2 (0.6) (2.7) A.19 General insurance mediation (1.0) (27.1) (0.5) 29.8 (1.5) (0.3) B RBs 0.3 (3.4) (0.1) 3.6 (0.2) 0.2 C CIS 0.1 (1.4) – 1.4 (0.1) – D DPBs 0.3 (0.2) – 0.2 – 0.3 E UKLA (0.5) (6.8) (0.1) 9.1 (0.4) 1.3 F Registrant only – (1.7) – 1.3 (0.1) (0.5) Total 7.2 (269.3) (4.8) 282.1 (15.2) – Less: costs incurred in introducing principles-based regulation (1.5) Net deficit excluding pensions obligation (1.5) The fee block descriptions above have been summarised for the purposes of this statement. A full description of the fee block can be found in the relevant section of the FSA’s Handbook.
- Page 48 and 49: Section four - Financial review FSA
- Page 50 and 51: Section four - Financial review FSA
- Page 52: Section four - Financial review FSA
- Page 55 and 56: 54 Section five - The Board of the
- Page 57 and 58: 56 Section five - Report of the Dir
- Page 59 and 60: 58 Section five - Report of the Dir
- Page 61 and 62: 60 Section five - Corporate governa
- Page 63 and 64: 62 Section five - Corporate governa
- Page 65 and 66: 64 Section five - Corporate governa
- Page 67 and 68: 66 Section five - Corporate governa
- Page 69 and 70: 68 Section five - Report of the ind
- Page 71 and 72: 70 Section five - Financial stateme
- Page 73 and 74: 72 Section five - Financial stateme
- Page 75 and 76: 74 Section five - Financial stateme
- Page 77 and 78: 76 Section five - Financial stateme
- Page 79 and 80: 78 Section five - Financial stateme
- Page 81 and 82: 80 Section five - Financial stateme
- Page 83 and 84: 82 Section five - Financial stateme
- Page 85 and 86: 84 Section five - Financial stateme
- Page 87 and 88: 86 Section five - Financial stateme
- Page 89 and 90: 88 Section five - Financial stateme
- Page 91 and 92: 90 Section five - Financial stateme
- Page 93 and 94: 92 Section five - Financial stateme
- Page 95 and 96: 94 Section five - Financial stateme
- Page 97: 96 Section five - Statement of allo
- Page 101 and 102: 100 Appendices FSA Annual Report 20
- Page 103 and 104: 102 Section six - Appendices Append
- Page 105 and 106: Section six - Appendices Appendix 2
- Page 107 and 108: Section six - Appendices Appendix 2
- Page 109 and 110: Section six - Appendices Appendix 2
- Page 111 and 112: Section six - Appendices Appendix 2
- Page 113 and 114: Section six - Appendices Appendix 2
- Page 115 and 116: Section six - Appendices Appendix 2
- Page 117 and 118: Section six - Appendices Appendix 2
- Page 119 and 120: Section six - Appendices Appendix 2
- Page 121 and 122: Section six - Appendices Appendix 2
- Page 123 and 124: Section six - Appendices Appendix 2
- Page 125 and 126: Section six - Appendices Appendix 3
- Page 127 and 128: Section six - Appendices Appendix 3
- Page 129 and 130: Section six - Appendices Appendix 5
- Page 131 and 132: Section six - Appendices Appendix 5
- Page 133 and 134: 134 Section six - Appendices Append
- Page 135 and 136: 138 Section six - Appendices Append
- Page 137 and 138: 142 Section six - Appendices Append
- Page 139 and 140: Section six - Appendices Appendix 6
- Page 141 and 142: Section six - Appendices Appendix 6
- Page 143 and 144: Section six - Appendices Appendix 6
- Page 145 and 146: Section six - Appendices Appendix 7
- Page 147 and 148: Section six - Appendices Appendix 7
Section five – Statement of allocation of costs<br />
<strong>FSA</strong> <strong>Annual</strong> <strong>Report</strong> <strong>2006</strong>/<strong>07</strong><br />
97<br />
While adopting IAS 19 provides greater transparency of the impact of<br />
pension costs on our financial position, it introduces significant volatility into<br />
both the figures reported in our income statement and in our balance sheet.<br />
In order to prevent IAS 19 transmitting this volatility into our fee<br />
calculations, we exclude any non-cash elements of pension costs from our<br />
<strong>Annual</strong> Funding Requirement (AFR). The main non-cash item excluded is<br />
the net finance cost £1m. Our AFR is calculated to include only the cash<br />
value of the pension contributions we need to make in a year to cover the<br />
increase in the scheme’s final salary liabilities due to additional years’ service<br />
and to salary increases. Also, the AFR includes any deficit reduction<br />
contributions aimed at reducing the size of the scheme’s deficit to ensure that<br />
it can meet its obligations. This is consistent with the fact that, as mentioned<br />
above, we have not allocated the pensions liabilities to fee blocks.<br />
Full details of the calculation of the AFR for 20<strong>07</strong>/08 are included in<br />
Consolidated Policy Statement on our fee-raising arrangements and<br />
regulatory fees and levies 20<strong>07</strong>/08, including feedback on CP<strong>07</strong>/3 and ‘made<br />
rules’, published in May 20<strong>07</strong>.
Change language