Published on 28 June 2018
Regulated fees and levies: rates for 2018/19 - PS13/18
Overview
This Prudential Regulation Authority (PRA) Policy Statement (PS) provides feedback to responses to Consultation Paper (CP) 7/18 ‘Regulated fees and levies: rates proposals 2018/19’. It sets out:
- the final fee rates and rules to recover the PRA’s Annual Funding Requirement (AFR) for the financial period 1 March 2018 to 28 February 2019;
- the ring-fencing implementation fee (RFIF) for the financial period 1 March 2018 to 28 February 2019; and
- final rules to implement changes to the Fees part of the rulebook (Appendix).
This PS is relevant to all firms currently paying PRA fees or expecting to do so within the 2018/19 fee year.
Background
The PRA received two responses to the CP, neither resulted in changes to the proposals. Details on the feedback received can be found in Chapter 2 of this PS.
The fee rates for firms in the A4 fee block (life insurers) are 17% higher for gross written premium (GWP) for fees purposes and 5% lower for best estimate liabilities (BEL) for fees purposes than indicated in CP7/18. This is because the indicative fee rates in CP7/18 were based on end-2016 data as the reporting deadline for Directive firms was Sunday 6 May, after the publication of CP7/18 on Monday 9 April. The GWP fee rate also reflects the outcome of an approved application from a life insurer for relief from PRA fees as a result of an exceptional, large, one-off internal reinsurance transaction.
Implementation
The implementation date for the PRA periodic fees (2018/19) and other fees instrument 2018 is Thursday 28 June 2018.
Online fees calculator
The Financial Conduct Authority (FCA) provides an online fees calculator to enable firms to calculate their periodic fees for the forthcoming year using the PRA rates in the Appendix. The fees calculator for 2017/18 fees and levies is now available for firms to use.
PRA RULEBOOK: PRA PERIODIC FEES (2018/19) AND OTHER FEES INSTRUMENT 2018
Published on 9 April 2018
Regulated fees and levies: rates proposals 2018/19 - CP7/18
Overview
This consultation paper (CP) sets out proposals for the Prudential Regulation Authority’s (PRA) fees and levies for 2018/19. The proposals include:
- the fee rates to meet the PRA’s 2018/19 Annual Funding Requirement (AFR);
- amendments to the Ring-fencing Implementation Fee (RFIF) rules;
- amendments to the International Financial Reporting Standard (IFRS) 9 Implementation Fee rules;
- an amendment to the Model Maintenance Fee rules;
- amendments to the rules for determining fees for non-directive general insurers and for all firms where data to calculate fees has not been reported;
- how the PRA intends to distribute a surplus from the 2017/18 AFR, the Ring-fencing Implementation Fee and the IFRS9 Implementation Fee; and
- how the PRA intends to distribute the retained penalties for 2017/18.
This consultation is relevant to all firms that currently pay PRA fees or are expecting to do so within the 2018/19 fee year.
Information on the PRA’s strategy and workplan for the coming year and how it intends to use the funding it receives is set out in the ‘PRA Business Plan 2018/19’, which has been published alongside this fees consultation.
Implementation
The proposed implementation date for the proposals contained in this consultation is Sunday 1 July 2018.
Response
This consultation closed on Monday 21 May 2018. The PRA invites feedback on the proposals set out in this consultation. Please address any comments or enquiries to CP7_18@bankofengland.co.uk.
Consultation Paper 7/18