On 25 October 2018, the Bank of England (BoE) published a consultation paper setting out proposals to levy fees on non-UK central counterparties (CCPs) that apply to the BoE to be recognised under domestic law after the UK’s withdrawal from the EU.
The consultation paper sets out the proposed fee for applications for UK recognition, notes the powers that the BoE intends to use to levy fees and highlights key aspects regarding the implementation of the approach. The consultation paper is intended to provide clarity on the BoE’s expected fee regime for applications for UK recognition made before and after the UK’s withdrawal from the EU.
The BoE proposes to apply a consistent fee for all applicant non-UK CCPs, regardless of whether there is more than one applicant from a given jurisdiction. The BoE believes that such an approach is the fairest way to recover the costs associated with the recognition of non-UK CCPs.
The BoE proposes to levy an application fee of £35,000 for each recognition application. The application fee will be payable once the non-UK CCP has been formally recognised by the BoE. An application fee will not be chargeable for notification of intent to apply for recognition.
The deadline for comments on the consultation paper is 2 January 2019.