BoE consults on 2024/25 supervisory fees for financial market infrastructure

Key proposals include:

• Spreading the charging for one-off costs related to increased policy work arising from FSMA 2023across the next three years. The total cost for the 2024/25 fee year of BoE’s FMI supervisory activity and policy activity (within scope of its fee-levying powers) is expected to increase to £18.4 million.
• Spreading the total cost of work over the next two years to develop the UK central counterparties (CCP) rulebook (which is expected to be in the region of £4.5 million) across three annual instalments of £1.5 million, to be allocated across CCPs authorised at the time the costs are incurred. The rationale for this approach is allowing firms time to prepare for the one-off costs of the rulebook work, rather than making larger payments over a shorter timeframe.

For 2024/25, this approach would result in a 31.2% increase in CCP fees compared to 2023/24 (excluding the rulebook instalment of £1.5 million, the increase is 10.7%).

The BoE will consult on costs each year as part of its annual FMI fees consultation process, and the final instalment for the rulebook work will be adjusted to reflect the actual costs incurred. Once the costs of developing this rulebook have been recovered, there will be a degree of ongoing cost to maintain it. This is expected to be relatively small and will also be consulted on each year.