Published on 6 July 2017
Regulated fees and levies: rates for 2017/18 – PS17/17
Update 6 November 2017: The PRA publishes PS27/17 ‘Regulated fees and levies: Adjustment to rates for 2017/18’ which corrects the fee rates for the PRA’s Annual Funding Requirement for 2017/18, published in Policy Statement (PS) 17/17 ‘Regulated fees and levies: rates for 2017/18’.
Overview
This Prudential Regulation Authority (PRA) policy statement (PS) provides feedback to responses to Consultation Paper (CP) 4/17 ‘Regulated fees and levies: rates proposals 2017/18’ (‘the CP’). It sets out the final fee rates and rules to recover the PRA’s Annual Funding Requirement (AFR), the ring-fencing implementation fee (RFIF) and the International Financial Reporting Standard (IFRS) 9 fee for the financial period 1 March 2017 to 28 February 2018. It also provides the final rules and an updated Supervisory Statement (SS) 3/16 ‘Fees: PRA approach and application’ (‘the SS’), to implement changes to the supervisory approach relating to Special Project Fees (SPF) for restructuring and regulatory transaction fees. The final rules are included in Appendix 1 and the updated SS3/16 in Appendix 2.
This PS is relevant to all firms that currently pay PRA fees or are expecting to do so within the 2017/18 fee year.
Feedback on consultation responses
The PRA received six responses to the CP. Chapter 2 summarises the feedback received and the PRA’s response. The PRA received no responses relating to its proposals for SPFs for restructuring and new firm authorisations. As a result, no changes have been made to the draft rules. The PRA also received no comments on the proposed revisions to the SS, as such the updated SS is unchanged from the draft.
Appendices
PRA PERIODIC FEES (2017/18) AND OTHER FEES INSTRUMENT 2017
Supervisory Statement 3/16 UPDATED
Published on 24 March 2017
Regulated fees and levies: rates proposals 2017/18 – CP4/17
Background
This consultation paper (CP) consults on proposals for the PRA’s fees and levies for 2017/18.
The consultation is relevant to all firms that currently pay PRA fees or are expecting to do so within the 2017/18 fee year.
Overview
The proposals in the CP include:
- the fee rates to meet the PRA’s 2017/18 Annual Funding Requirement (AFR);
- amendments to the definition of the general insurer (A3) fee block concerning insurance special purpose vehicles (ISPVs);
- amendments to the ring-fencing implementation fee rules;
- rules for introducing an International Financial Reporting Standard (IFRS) 9 implementation fee;
- amendments to the rules and supervisory guidance concerning Special Project Fees (SPF) for restructuring;
- amendments to the rules and supervisory guidance concerning regulatory transaction fees;
- how the PRA intends to manage a shortfall from the 2016/17 AFR and distribute a surplus on the ring-fencing implementation fee; and
- how the PRA intends to distribute the retained penalties for 2016/17.
Update 19 April 2017: In paragraph 1.4 of CP4/17 the PRA stated it would issue an updated CP if the final estimate of the PRA's pension costs varied more than £2 million from the stated cost. The variance is less than the £2 million figure and so the PRA will not be issuing an updated CP.
Response
The consultation closed on Wednesday 24 May 2017.
Feedback on the consultation and final rules will be published in a policy statement in July 2017.