Published on 26 February 2016
PRA Rulebook: Fees Part and responses to CP40/15 – PS7/16
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.
The PRA Rulebook: Fees – CP40/15
This consultation paper (CP) sets out the Prudential Regulation Authority’s (PRA) proposals to redraft the FEES module of the Handbook to conform to the Rulebook style.
This CP is part of a planned series of consultations aimed at replacing the PRA Handbook (the Handbook) material inherited from the Financial Services Authority with a standalone PRA Rulebook (the Rulebook). It reflects the commitment made in the PRA’s approach documents to create a clear, concise set of rules specific to the needs of PRA authorised firms.
The consultation is relevant to all PRA-authorised firms.
Summary of proposals
The aim of this consultation is to effect the Rulebook transposition in relation to fees, not to alter the rates of fees or methods of calculation. Fee rates shown in the draft rule instrument are those in force at the date of the CP (i.e. for the 2015/16 fee year) which will still be in force when the new rules take effect. Fee rates for 2016/17 will be subject to separate consultation in Spring 2016.
The PRA intends to replace the rules and guidance set out in the FEES module of the Handbook with a new Fees Part of the PRA Rulebook. The PRA’s approach has been to divide the existing Handbook material into five topic-based chapters as follows (Handbook sections in brackets):
- Chapter 1 Application and definitions [FEES 1];
- Chapter 2 Obligation to pay fees [FEES 2];
- Chapter 3 Periodic Fees, with Periodic Fees Schedule [FEES 4];
- Chapter 4 Regulatory Transaction fees [FEES 3 other than Annex 9]; and
- Chapter 5 Special project fee for restructuring [FEES 3 Annex 9].
The appendices to this CP include:
- Appendix 1 – draft Supervisory Statement ‘Fees: PRA approach and application’
- Appendix 2 – draft instrument: Fees Part of the Rulebook
- Appendix 3 – draft instrument: consequentials
This consultation closed on Tuesday 29 December 2015.