On 25 November 2022, the Bank of England (BoE) published Policy Statements regarding its fees regimes for:

• Incoming central securities depositories (CSDs).
• Incoming central counterparties (CCPs).

Currently, incoming CCPs can provide services in the UK under a temporary recognition regime. By the time this expires, incoming CCPs will need to be recognised by the BoE under the on-shored European Market Infrastructure Regulation. In June, the BoE set out its final policy for ‘tiering’ incoming CCPs according to the level of risk they could pose to UK financial stability. From 30 June to 15 September, the BoE consulted on a proposed fee regime for incoming CCPs that reflects the tiering approach and would apply after CCPs have been recognised.

Incoming CSDs also currently provide services in the UK under a temporary regime, until such point as they have been recognised by the BoE. The BoE also consulted on a fees regime for incoming CSDs from 30 June to 15 September, which reflects the level of risk to UK financial stability posed by CSDs.

Following the conclusion of the two consultations, the BoE now confirms its final policy on fees for both incoming CCPs and CSDs. This completes the policy framework to enable the BoE to recognise these types of firms, establishing the BoE’s steady-state regulation of the financial market infrastructure landscape in the context of the UK’s withdrawal from the EU.

The implementation date for the BoE’s final policy for incoming CCP and CSD fees is 1 December 2022, in line with the implementation date for its policy on tiering and comparable compliance in respect of incoming CCPs.