PRA has published its proposals for regulated fees and levies for 2017/18. Key proposals include:
- an estimate of a 2% increase in PRA’s budgeted cost for ongoing regulatory activities and a new estimate costs associated with EU withdrawal of £5.4m;
- PRA will continue to incur costs on implementing the ring-fencing regime, with related fees payable by firms covered by it;
- PRA is proposing a new implementation fee payable by deposit takers and firms acting as principal that are expected to used IFRS9 or FRS 101, to cover PRA’s costs in implementing these measures;
- updating the rates for special project fees for restructurings;
- recalibrating the calculation of charges for CRR applications, to bring the charges for seeking permissions for use of IMA and IMM models in line with charges for IRB models;
- introducing a new charge for insurers applying to use Solvency 2 internal models;
- allocating between fee blocks and to firms the shortfall of around £2m between the amount of the annual funding requirement collected and the final costs for 2016/17; and
- distributing around £1m of retained penalties to eligible firms.
PRA asks for comments by 24 May.