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Regulatory transaction fees incurred by a firm remain payable even if an application is withdrawn.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

This 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 new authorisations are payable as follows:

1. (1) All applications for new authorisations other than from credit unions are first assigned to the complexity groupings in Tables B and C to assist the PRA in determining the appropriate fee. Fees are then payable in accordance with:
1. (a) Table B if the permission sought does not include consumer credit-related activities; and
2. (b) Table C if the permission sought involves consumer credit related activities.

1. (2) Credit unions applying for new authorisations pay fees as follows:
1. (a) any credit union applying for a Part 4A permission for consumer credit related activities £100.00;
2. (b) a credit union which, prior to 3rd February 2016, would have been categorised as a Version 1 credit union applying for Part 4A permission not limited to consumer credit related activities £150.00;
3. (c) a credit union which, prior to 3rd February 2016, would have been categorised as a Version 2 credit union applying for Part 4A permission not limited to consumer credit related activities £900.00.
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) Where an applicant for a new authorisation is FCA authorised, the application will be treated as a variation of permission and fees will be payable in accordance with 4.7.
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

Where a fee-payer seeks to vary its existing Part 4A permission or is an FCA-authorised firm seeking to obtain or vary a Part 4A permission in relation to PRA regulated activity, regulatory transaction fees are payable as follows:

1. (1) if the firm is extending the scope of its Part 4A permission to include additional regulated activities, the fee will be 50% of the highest fee which would have been payable by that firm had it been applying for a new authorisation under 4.5; and
2. (2) no fee is payable if the variation involves a reduction in scope of a Part 4A permission with no increases in permission.

4.8

The transferor seeking regulatory consent for an insurance business transfer scheme under Part VII of FSMA pays regulatory transaction fees as follows:

1. (1) transfers involving long term insurance business £9,250.00; or
2. (2) all other transfers £5,000.00,

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

An applicant for a waiver or in relation to the treatment of assets of a United Kingdom insurance special purpose vehicle pays a fee of £20,000.00

4.12

4.12 - 4.15 apply only to CRR firms.

4.13

Regulatory transaction fees are payable as follows where a CRR firm seeks permission from the PRA in its capacity as United Kingdom regulator or consolidating supervisor:

1. (1) for permission to use one of the internal approaches referred to in 4.15 which require consent under Part Three of the CRR;
2. (2) to modify that approach once permission is granted; or
3. (3) for guidance as to the availability of such an approach or modified approach.

4.14

The due date for payment under 4.12 -4.15 is as follows:

1. (1) where the application is made directly to the PRA, on or before the application is made;
2. (2) otherwise within 30 days after the PRA notifies the firm that its EEA parent’s consolidating supervisor has requested assistance.

4.15

Where a CRR firm seeks permission to apply the internal model method for counterparty credit risk the fee payable is £54,000.00 and for other model approaches as set out in Table D below:

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 will be within 30 days of the invoice.