9 June 1999
APPLICATION AND PERIODICAL FEES FOR RECOGNISED OVERSEAS INVESTMENT EXCHANGES AND RECOGNISED OVERSEAS CLEARING HOUSES
The Treasury today announced that the application and periodical fees charged to applicants of Recognised Overseas Investment Exchange status or Recognised Overseas Clearing House status under sections 112 and 113 of the Financial Services Act 1986 will be increased to £33,000 and £9,000 respectively, with effect from 1 July.
NOTES FOR EDITORS
1. Recognition as an overseas investment exchange under sections 37 and 40 of the Financial Services Act 1986 enables the exchange to carry out investment business in the UK. Recognition as an overseas clearing house under sections 39 and 40 enables the clearing house to provide clearing services in the UK.
2. The increase in fees was announced in answer to a Parliamentary Question from Ms Jackie Lawrence MP.
3. Currently UK-recognised overseas investment exchanges are :
NASDAQ
Sydney Futures Exchange
Chicago Mercantile Exchange
Chicago Board of Trade
New York Mercantile Exchange
Delta*
Swiss Exchange
Cantor Financial Futures Exchange
* Delta has now ceased trading (see HMT press notice 26/99)
There are currently no recognised overseas clearing houses in the UK.
4. Criteria for the recognition of overseas exchanges and overseas clearing houses outside the EU are laid down in sections 40 and 119 of the Financial Services Act 1986.
5. EU investment exchanges (except commodity exchanges) do not need formal recognition to carry out investment business in the UK under the terms of the EU Investment Services Directive.