20 April 2022: Please note we have updated Table 2C to reflect the correct percentage.
This Consultation Paper (CP) sets out proposals for the Prudential Regulation Authority’s (PRA) fees for 2022/23. The proposals would make amendments to the Fees Part of the PRA Rulebook (Appendix). The proposals include:
- the fee rates to meet the PRA’s 2022/23 Annual Funding Requirement (AFR);
- fees applicable to firms in the temporary regimes;
- changes to the internal model application fees and the model maintenance fee;
- changes to the special project fees for restructuring fees;
- setting out how the PRA intends to distribute a surplus from the 2021/22 AFR (Chapter 3); and the retained penalties for 2021/22 (Chapter 4).
This CP is relevant to all firms that currently pay PRA fees or are expecting to do so within the 2022/23 fee year.
The PRA considered the interaction between its primary and secondary objectives and the ‘have regards’. Overall, the PRA considers it to be necessary to amend firms’ fees where needed, to continue to:
- enable the PRA to meet expenses incurred to carry out its functions (as well as any incidental purposes);
- repay principal of/interest on any relevant borrowing; and
- maintain adequate reserves.
The PRA proposes to publish the changes resulting from this CP on Monday 4 July 2022, and proposes that the implementation date for the changes resulting from this CP would be Wednesday 6 July 2022.
Responses and next steps
This consultation closes on Friday 20 May 2022. The PRA invites feedback on the proposals set out in this consultation. Please address any comments or enquiries to CP4_22@bankofengland.co.uk. Please indicate in your response if you believe any of the proposals in this consultation paper are likely to impact persons who share protected characteristics under the Equality Act 2010, and if so, please explain which groups and what the impact on such groups might be.