Prudential Regulation Authority Rulebook

4.1

This chapter does not apply to EEA firms wishing to exercise an EEA right.

4.2

Unless otherwise indicated in 4, the due date for payment of regulatory transaction fees is on or before the application is made.

4.3

Regulatory transaction fees incurred by a firm remain payable even if an application is withdrawn. Regulatory transaction fees once received by the PRA, or by the collection agent on its behalf, are non-refundable.

4.4

Chapter 4 shows regulatory transaction fees payable to the PRA. As all PRA firms are dual regulated, fees may also be payable to the FCA.

4.5

Regulatory transaction fees for applications for new authorisations are payable in accordance with Table B:

1. (1) [Deleted.]

1. (2) [Deleted.]
2. (3) Where an application is categorised as either straightforward or moderately complex and involves a simple change of legal status as defined in 4.5 (4), the fee payable for a new authorisation is discounted by 50%.
3. (4) An application involves only a simple change of legal status under 4.5(3) if it is from an applicant which:
1. (a) is a new legal entity intending to carry on the business, using the same business plan, of an existing firm where the latter has no outstanding regulatory obligations and is cancelling its Part 4A permission; and
2. (b) will:
1. (i) have the same or a narrower Part 4A permission and the same branches as the firm;
2. (ii) assume all of the rights and obligations in connection with any of the PRA regulated activities carried on by the firm;
3. (iii) continue the same compliance arrangements in relation to client assets and client money as the firm except for any changes required only as a result of the change of legal status; and
4. (iv) continue with a risk profile and arrangements for controlling and monitoring risk which will not be materially different from those of the firm.
4. (5) [Deleted.]
5. (6) Where a new authorisation under 4.5 or an exercise of Treaty rights under 4.6 relates to more than one PRA regulated activity, a single fee, being the highest applicable regulatory transaction fee, is payable.
6. (7) An application for a new authorisation is not deemed complete until the regulatory transaction fee is paid.

4.6

Regulatory transaction fees are payable as follows by incoming Treaty firms seeking to exercise a Treaty right in order to qualify for authorisation under Schedule 4 FSMA in respect of PRA regulated activities for which it does not have EEA passporting rights and which are not restricted to providing cross border services:

1. (1) unless 4.6 (2) applies:
1. (a) 50% of the amount payable under 4.5 if the permitted activities are being undertaken through the firm’s branch in the United Kingdom; or
2. (b) 25% of the amount payable under 4.5 if the permitted activities are being undertaken by providing cross border services in the United Kingdom.
2. (2) No regulatory transaction fees are payable if HM Treasury has issued a certificate under paragraph 3(4) of Schedule 4 of FSMA confirming that equivalent protection is provided under the law of an EEA state other than the United Kingdom.

4.7

1. (1) [Deleted.]
2. (2) [Deleted.]
3. (3) Subject to paragraph (4), where a fee-payer or FCA authorised firm seeks to vary its existing Part 4A permission to:
4. 1. (a) include a PRA regulated activity, or
   2. (b) include, in relation to a PRA regulated activity, the activity of providing services to retail clients,
5. the fee payable shall be £12,500.
6. (4) In a case where the fee-payer or FCA authorised firm seeks to vary its existing Part 4A permission to include a PRA regulated activity described in:
1. (a) fee block A1 in respect of a credit union or fee block A3 in respect of a friendly society, it shall be £750;
2. (b) fee block A3 in respect of an ISPV or friendly society or fee block A5 in respect of a Lloyd's managing agent, it shall be £2,500.

4.8

The transferor seeking regulatory consent for an insurance business transfer scheme under Part VII of FSMA pays a regulatory transaction fees of £20,000.00, the due date for payment being on or before the date of any application to the PRA for the appointment of an independent expert.

4.9

For the purposes of 4.8 an insurance business transfer scheme involving more than one transferor or transferee may, at the PRA’s discretion, be treated as a single scheme to which only one fee will be applied. Where there is more than one transferor they will be jointly and severally liable for the fee.

4.10

A transferor in an insurance business transfer scheme may be liable to pay a regulatory transaction fee under 4.8 and a special project fee under 5 in relation to the same subject matter.

4.11

[Deleted.]

4.12

[Deleted.]

4.12A

4.12A to 4.15A apply to CRR firms and UK Solvency II firms.

4.13

[Deleted.]

4.13A

Regulatory transaction fees are payable:

1. (1) as set out in 4.14A where a CRR firm seeks permission from the PRA in its capacity as United Kingdom regulator or consolidating supervisor to use one of the model types referred to in 4.14A which require consent under Part Three of the CRR;
2. (2) as set out in 4.14B where any of the following applications are made which require consent under Title I or Title III of the Solvency II Directive:
1. (a) a UK Solvency II firm seeks permission from the PRA in its capacity as United Kingdom regulator for permission to use a solo internal model;
2. (b) a UK Solvency II firm seeks permission from the PRA in its capacity as Solvency II group supervisor for permission to use a group internal model; or
3. (c) a Solvency II undertaking seeks permission from its group supervisor to use a group internal model which includes within the model’s scope one or more UK Solvency II firms.

4.14

[Deleted.]

4.14A

1. (1) Where a CRR firm seeks permission to apply any model type the fee payable is as set out in Table D below.

Table D - Model types under CRR

4.14B

1. (1) Where a UK Solvency II firm or a Solvency II undertaking seeks permission for an internal model, the fee payable is as set out in Table E below, subject to 4.14B(2) and 4.14B(3).
2. (2) Where a firm or a group falls within both the general insurance fee block and the life insurance fee block, the fee payable is the greater of the fees due under each fee block.
3. (3) Where a Solvency II undertaking seeks permission for a group internal model which includes one or more UK Solvency II firms within its scope, the fee is calculated using aggregated tariff data for all in-scope UK Solvency II firms, and is payable by such of those firms and in such proportions as the PRA directs.

Table E – Internal model application fees

4.15

[Deleted.]

4.15A

The due date for payment under 4.12A to 4.14B is as follows:

1. (1) where the application is made directly to the PRA, on or before the application is made;
2. (2) within 30 days after the PRA notifies a CRR firm that its EEA parent’s consolidating supervisor has requested assistance; or
3. (3) within 30 days after the PRA notifies a UK Solvency II firm that it has received a copy of a group internal model application from the Solvency II group supervisor which includes the UK Solvency II firm within its scope.

4.16

Where the PRA has given notice to a fee payer of its intention to itself appoint a skilled person to:

1. (1) provide it with a report pursuant to s166(3)(b) of FSMA; or
2. (2) collect or update information pursuant to Section 166A(2)(b) of FSMA;

the fee will be the amount invoiced by the skilled person.

4.17

The due date for payment by the firm is 30 days from the date of each invoice from the PRA to the firm.