This Prudential Regulation Authority (the PRA) policy statement (PS) provides feedback on responses to Consultation Paper 40/15 and is relevant to all PRA-regulated firms.
Included in this PS are the supervisory statement (SS) and final rules following CP40/15. The final SS3/16 ‘Fees: PRA Approach and Application’ in Appendix 1 and the final rules in Appendix 2. Handbook and Rulebook consequential instruments can be found in Appendices 3 and 4 respectively.
In CP40/15 the PRA set out proposals to redraft the FEES module of the Handbook to conform to the PRA Rulebook (the Rulebook) style. The CP was part of a planned series of consultations aimed at replacing PRA Handbook material inherited from the Financial Services Authority (FSA) with a standalone Rulebook and reflected the commitment made in the PRA’s supervisory approach documents to create a set of rules specific to the needs of PRA-authorised firms.
Fee rates shown in the final rules instrument are those in force at the date of the PS (i.e. for the 2015/16 fee year). Fee rates for 2016/17 will be subject to consultation in spring 2016.
Summary of content
CP40/15 outlined the PRA’s general approach when replacing the rules and guidance in the FEES module of the Handbook with a new Fees Part of the Rulebook. In summary, the former Handbook material has been divided into five topic based chapters as follows:
- Chapter 1 Application and Definitions (formerly FEES 1);
- Chapter 2 Obligation to pay fees (formerly FEES 2);
- Chapter 3 Periodic Fees, with Periodic Fees Schedule (formerly Fees 4);
- Chapter 4 Regulatory Transaction Fees (formerly FEES 3 other than Annex 9); and
- Chapter 5 Special Project Fee for restructuring (formerly FEES 3 Annex 9).
This has not changed following consultation.
PRA Rulebook: Fees Part and responses to CP40/15 – PS7/16
1. Fees: PRA Approach and Application – SS3/16
2. PRA Rulebook: Fees Instrument 2016
3. PRA Handbook: Rulebook Consequentials (Fees) Instrument 2016
4. PRA Rulebook: Rulebook Consequentials (Fees) Instrument 2016