The PRA has issued Policy Statement 6/14: Regulated fees and levies: rates for 2014/15 (PS6/14).
In PS6/14, the PRA sets out final rules and provides feedback on its earlier consultation on:
- the annual funding requirements and allocation to fee blocks for 2014/15;
- the special project fees for Solvency II for 2014/15; and
- a refund of the underspend for 2013/14.
The PRA’s budgeted cost of on-going regulatory activities for 2014/15 is £232 million. Transition costs to be recovered for 2014/15 amount to £14.8 million, which represents the accumulated regulatory reform costs that are being recovered over a period of five years. The PRA’s resulting Annual Funding Requirement for 2014/15 is £246.8 million.
The PRA will continue to levy a special project fee for Solvency II in relation to non-internal model approval process (IMAP) activity. The non-IMAP Solvency II special project fee for 2014/15 is £13.2 million.
The PRA’s final underspend for the eleven month period from 1 April 2013 to 28 February 2014 was £23 million, and this amount will be refunded to firms. The PRA deems it more equitable to refund any underspend, or invoice for any overspend, based on the firm population and reference data for the year to which the refund or additional fee relates. The PRA will allocate the current underspend to firms within fee blocks based on the firm population and tariff data for 2014/15. New entrants for 2014/15 will no longer benefit from any underspend for 2013/14.
Appendix 1 to PS6/14 contains the Handbook Instrument relating to these policy decisions: the PRA Periodic Fees (2014/2015) and Other Fees Instrument 2014 (PRA 2014/21). This instrument was made by the PRA Board on 1 July 2014 and comes into force on 2 July 2014.
View Policy Statement 6/14: Regulated fees and levies: rates for 2014/15, 2 July 2014
