Prudential Regulation Authority Rulebook

4.1

The PRA may charge fees relating to certain applications and transactions in some circumstances. Fees uses the term ‘regulatory transaction fee’ to describe such payments.

4.2

Fees 4 includes information on the fees that firms pay when applying to become PRA‐authorised (defined as ‘new authorisations’ in Fees 4).

4.3

All PRA firms are dual regulated, ie they are authorised initially and thereafter regulated by both the PRA and the Financial Conduct Authority (FCA) for different aspects of their business. Dual regulated firms have a single Part 4A permission which describes the PRA and FCA regulated activities which they may carry on.

4.4

The level of authorisation fee is dependent on the complexity of the application, based on the regulated activities to which the application relates. Where a firm is applying to undertake multiple regulated activities, only one authorisation fee is payable, which is the highest of the authorisation fees payable under Fees 4.

4.5

When a firm carries out a restructuring that involves a new authorisation (for example, if a branch applies to become a subsidiary), the PRA may choose to levy a Special Project Fee (SPF) for restructuring (see Chapter 5 of this SS) to cover the entire cost of all related regulatory work conducted by the PRA, including the new authorisation.

4.6

If a firm, once authorised, decides to undertake a new regulated activity or expand into new areas of business, this may necessitate a change to its permission.

4.7

Wherever a PRA‐regulated activity is involved, the firm should submit a Variation of Part 4A Permission (VoP) application to the PRA. As with new authorisations, firms seeking to vary their permissions should make a single application to both regulators, on which the PRA will lead.

4.8

Where a firm’s application extends its Part 4A permission to include additional regulatory activities, the applicable fee is detailed in Fees 4.7 and should be paid on submission of the application. The firm will also be expected to pay periodic fees for this additional regulatory activity based on its projected business, with the amount of the fee calculated under the methodology outlined in Fees 3.7. This additional periodic fee will be requested by invoice and is usually raised the month after the firm becomes authorised, with payment requested within 30 days of the date of the invoice.

4.9

Firms applying for authorisation by both the PRA and the FCA, or to vary their Part 4A permission, pay a single application fee. This will be the sum of amounts due to the PRA as shown in the Fees Part of the PRA Rulebook and any amounts payable to the FCA under the FCA’s fees rules.

4.10

At the time of publication, the other regulatory transaction fees in Chapter 4 of this SS are fees:
• for Gibraltar-based and incoming European Economic Area (EEA) firms seeking permissions in relation to PRA-regulated activities for which they do not have automatic passported activity rights;
• payable by a transferor seeking consent for an insurance business transfer scheme under Part VII of Financial Services and Markets Act 2000 (FSMA);
• for Capital Requirements Regulation (CRR) firms (banks, building societies and certain investment firms) seeking permission to use specified internal approaches to assessing risk;
• for Solvency II firms (firms subject to the Solvency II Directive) seeking permission to use internal models; and
• payable in some circumstances where the PRA has commissioned a skilled person’s investigation or report.