Performance-related fee meaning

ARCHIVED: This Practice Note is archived and is no longer maintained. The Payment Accounts Directive (Directive 2014/92/EU) (PAD) is designed to improve clarity and comparability for consumers in relation to payment accounts across the EU. Specifically, the PAD: simplifies comparison of charges levied by banks and other providers throughout the EU helps customers to switch payment accounts with ease, and gives every EU consumer the right to open a payment account enabling them to carry out essential functions such as receiving their salary and paying bills The PAD stems from the European Commission’s consultation on retail bank accounts, launched in March 2012, which evaluated the need for action in the areas of fee clarity and comparability, account switching, and access to basic payment accounts. This was preceded by a 2007 inquiry into the retail banking sector that identified these issues as obstacles to consumer choice and mobility. Subsequent attempts by Member States to address the problems independently at national level led...

In this issue: Key developments and materials Electricity and gas market regulation and licensing Networks and network connections Conventional power, waste to energy, biomass, and CHP projects Nuclear energy Air emissions, efficiency, and climate change International energy Daily and weekly news alerts New and updated content Dates for your diary Trackers Key developments and materials Friends of the Earth has won a pivotal High Court judgment against the government, with the court ruling that the climate strategy advanced by the Secretary of State for Energy Security and Net Zero is unlawful. The court determined that adopting the Carbon Budget Delivery Plan contravened the Climate Change Act 2008. See: LNB News 03/05/2024 70. Electricity and gas market regulation and licensing Ofgem has released its conclusions on the consultation regarding updates to the licence fee cost recovery principles (LFCRP) and issued the LFCRP for May 2024. After reviewing consultees’ submissions, Ofgem confirmed it...

The Prudential Assurance Company Ltd v HMRC [2024] EWCA Civ 300 The Prudential Assurance Company Ltd (Prudential) acted as the representative member of its VAT group. Another company in the group, Silverfleet Capital Ltd (SCL), executed an investment management services contract to provide services to Prudential. Under that contract, SCL was also eligible for a management fee and deferred performance fees once a specified hurdle rate was achieved. Under section 43 of the Value Added Tax Act 1994 (VATA 1994), no VAT was payable on the management fee because they were in the same VAT group. In 2007, SCL exited the VAT group. In 2014 and 2015, the triggers for paying the further deferred performance fee were satisfied and SCL invoiced Prudential for over £9m in total. The question before the Court of Appeal was whether those additional performance fees ultimately constituted consideration for a supply made while both companies were members of the same VAT group or, alternatively, whether the services amounted to a continuous supply of services...

In this issue: Authorisation, approval and supervision Prudential requirements Risk management and controls Financial crime and sanctions Complaints, compensation and claims management Investigations, enforcement and discipline Regulation of capital markets Regulation of derivatives Banks and mutuals Consumer credit, mortgage and home finance Payment services and systems International—financial services and related sectors Fintech and cryptoassets LexTalk®Financial Services: a Lexis®Nexis community Financial Services Enforcement Database Daily and weekly news alerts Intraday news alerts New and updated content Dates for your diary Authorisation, approval and supervision HM Treasury issues a policy statement describing its intended approach to the regulation of Appointed Representatives within UK financial services. The paper suggests targeted adjustments to enhance oversight and bolster consumer protection, while preserving the regime’s function in fostering competition and innovation. See: LNB News 11/08/2025 28. The Financial Conduct Authority has updated its Conduct Rules webpage to clarify...

Your complaints handling framework (see Practice Note: How to implement and maintain effective complaints handling procedures—law firms) should reflect the scale and character of your firm. Recognise that some circumstances will call for a more bespoke response, while still being managed within your overall complaints processes. This How-to-guide highlights examples where additional factors may need attention beyond those covered by your standard complaints handling framework... Complaints about the bill Concerns about bills arise fairly often. You must handle a billing complaint in exactly the same manner as any other complaint. The Legal Ombudsman (LeO) has issued guidance on Complaints about legal costs, having identified recurring themes. Although aimed particularly at matters funded by conditional fee agreements, it offers a broader view of LeO’s general approach. When assessing cost-related complaints, LeO will consider whether, from the outset, you ensured the client fully grasped what they would, or might, be required to pay. The guidance also sets out LeO’s expectations across a range of scenarios and questions where clarity on...

The Swiss Rules of International Arbitration, updated on 1 June 2021 (the Swiss Rules), govern—unless the parties agree otherwise—any arbitration begun on or after 1 June 2021 on the basis of an arbitration agreement where the clause refers to the Swiss Rules, or to the former rules of chambers or organisations that adopted the Swiss Rules or placed their proceedings under them. For commentary on the 2012 Swiss Rules, see: Swiss Rules arbitration—overview. A recurring element of institutional arbitration frameworks, including the Swiss Rules, is the institution’s involvement in setting and administering arbitration costs. Under the Swiss Rules, though, arbitral tribunals enjoy broader powers on costs than under several other prominent institutional regimes, such as those of the International Chamber of Commerce (ICC) and the London Court of International Arbitration (LCIA). This Practice Note addresses costs and security for costs under the Swiss Rules. A citation to the Swiss Arbitration Centre’s (the SAC’s) Guidelines for Arbitrators may assist on cost-related issues. Categories and determination of arbitration costs Under...

The legislative framework The Pension Schemes Act 2017 The Pension Schemes Act 2017 (PSA 2017) is designed to strengthen safeguards for members of master trusts by tightening oversight of master trusts and addressing risk areas inherent in the master trust model when set beside other occupational pension schemes (such as profit-driven objectives, large cohorts of disengaged savers, and the potential jeopardy to pension pots if a master trust collapses). In summary, from 1 October 2018: master trusts must secure authorisation from the Pensions Regulator to operate as a master trust (with existing master trusts given until 31 March 2019 to submit an authorisation application, subject to any extension of the deadline granted by the Pensions Regulator). Five conditions must be met before the Pensions Regulator will grant authorisation—see: Authorisation criteria, below the Pensions Regulator has responsibility for the ongoing supervision of master trusts—see: Ongoing supervision and The Pensions Regulator’s proposed approach to supervision and enforcement, below master trusts must identify and manage ‘triggering...

A: Gut feel Comments or observations Instinctive income forecast B: Trends Data Year Fee income £ % uplift on prior year Indicators that the % change is not part of the wider trend [ 2025 ] [ 2024 ] [ 2023 ] [ 2022 ] [ 2021 ] Conclusions Comments or observations Trend analysis fee income prediction C: Capacity No. of fee earners Expected chargeable hours per fee earner Average hourly rate Expected gross income % of recorded time billed in previous years Capacity income prediction D: WIP (work in progress) levels Data Value of WIP at year end [ 2024 ] Value of WIP at year end [ 2025 ] Number of open files at year end [ 2024 ] Number of open files at year...

Name [ Insert appraisee’s name ] Present manager [ Insert appraiser’s name ] Position/title [ Insert appraisee’s job title ] PDP year (current) [ Insert year ] Department [ Insert appraisee’s department ] Appraisal date [ Insert date ] Was the appraisal held in person? ☐ Yes ☐ No Aim of the meeting To explore your individual ambitions To offer feedback on your level of performance To map out your future with us, ensuring we support your career development To define and agree goals aligned with the firm’s strategic aims What the meeting will cover Part 1: Performance versus personal objectives Part 2: Performance in relation to core skills Part 3: Overall performance assessment Part 4: Future aspirations Part 5: Forthcoming personal objectives Part 6: Personal development plan Preparation for appraisal meeting Please review and complete sections 1 to 4 ahead of...

Gathering figures on a firm’s finances serves little purpose unless those insights are applied to drive improvement. Key measures of present performance include total fee income, overall fee‑earning capacity, and the fees generated per fee earner. This Precedent enables analysis of these metrics and supports a modelling exercise to gauge the likely financial consequences where any variable inputs are altered. To complete the analysis and modelling, follow this three–step process: step 1—calculate key variables step 2—evaluate and interrogate the firm’s current fee income, fee‑earning capacity, and fees per fee earner step 3—run a modelling exercise to assess the potential financial impact of changing any variables This Precedent supports steps 2 and 3 and should be read alongside Precedent: Variable calculations, which addresses step 1. Click to obtain an Excel version of this Precedent...