Administrative charges
Administrative charges are payable by pharmaceutical companies (both members and non-members of the ABPI) in relation to cases considered under the Code of Practice.
Charges are only paid by pharmaceutical companies. Charges are paid by those ruled in breach of the Code and those that make unsuccessful complaints.
The administrative charges are based on the matters ruled upon in a case. A number of charges may arise in a particular case.
Healthcare professionals, members of the public or other individuals from outside the pharmaceutical industry do not pay any charges for making a complaint.
Charges: levy, administrative charges, audits
The PMCPA is required to be self-financing. The Constitution and Procedure requires the ABPI Board of Management to determine the charges for the annual Code of Practice levy, administrative charges in relation to cases, charges for compulsory audits of companies and the contributions to the cost of press advertising. The charges were approved at the General Meeting of the ABPI on 20 December 2023.
Please note that all of the changes set out below are subject to the addition of VAT.
1. Annual levy
ABPI member companies to pay up to £6,000 per vote, but the levy for ABPI companies with one vote is subdivided depending on their ABPI subscription level.
Members would have a partial refund of the levy if the Authority's income was more than its expenditure.
The revised levy applied from 01 January 2024.
2. Administrative charges and the cost of press advertising
The administrative charges are only payable by unsuccessful pharmaceutical companies, whether in membership of the ABPI or not, and are intended to contribute substantially to the costs of dealing with complaints. They are not fines. The majority of the PMCPA's income usually comes from administrative charges although, as the amount collected depends upon the source of the complaint and the outcome, the total which will be collected in any one year cannot be predicted.
There are two levels of administrative charge. The administrative charges for ABPI members are £5,000 and £13,000, and for non-member companies who abide by the Code £6,000 and £14,000.
The lower level is payable by a company which accepts either a ruling of the Panel that it was in breach of the Code or a rejection by the Panel of its allegation against another company. The lower level is also payable by a complainant company if a ruling of the Panel that there was a breach of the Code is subsequently overturned by the Appeal Board and by a respondent company if a ruling of the Panel that there was no breach of the Code is subsequently overturned by the Appeal Board. The higher level is paid by a company which unsuccessfully appeals a ruling of the Panel.
In addition, all companies ruled in breach of Clause 2 of the Code, or the subject of a public reprimand or required to issue a corrective statement, pay £4,000 towards the cost of advertising that fact in the medical, pharmaceutical and nursing press.
The above charges apply to cases where Panel rulings were issued after 1 January 2024.
For any cases where the Panel ruling was issued in 2023, the applicable charges in 2023 will continue to apply. This includes any administrative charges arising from an appeal of these rulings.
The previous administrative charges in operation from 2015–2023 were £3,500 and £12,000 for ABPI members, and £5,000 and £13,000 for non-members. In addition, all companies ruled in breach of Clause 2 of the Code, or the subject of a public reprimand or required to issue a corrective statement, paid £4,000 towards the cost of advertising that fact in the medical, pharmaceutical and nursing press.
3. Audits
The charge for a compulsory audit for all companies is up to £40,000 depending on complexity. This charge applied from 1 January 2024.