PRA sets fees and levies for 2023/24

Following its April consultation, PRA has published a policy statement confirming the fees and levies payable for the 2023/24 fee year.

Respondents welcomed the reduction year-on-year to the Annual Funding Requirement (AFR) highlighting the adverse impact high inflation is having on the industry, and the fact that the minimum fee for 2023/24 will not increase.

The consultation had stated that there was a £0.8m surplus between the total fees collected for 2022/23 and PRA’s actual spend, which was based on a draft unaudited figure. The feedback confirms that following the finalisation of PRA’s accounts, there is no surplus for 2022/23.

One respondent suggested that building societies have their own fee block due to their lower risk and domestic focus when compared to banks. PRA largely dismissed this suggestion, highlighting that its approach is risk-based and matches a firm’s fee as closely as possible to the risk it poses to PRA’s objectives. It stated that for fee block A1 specifically, the methodology bases a deposit taker’s fee on its modified eligible liabilities (largely consisting of its customer deposits) and has fee rate tiers to weight the block’s allocation towards those firms with the largest modified eligible liabilities.