Close menu

Application provision

1.1 This Part, unless otherwise stated, applies to every firm and every person required to pay a fee to the PRA.

1

Application and Definitions

1.1

01/03/2016

This Part, unless otherwise stated, applies to every firm and every person required to pay a fee to the PRA.

1.2

01/03/2019

In this Part, the following definitions shall apply:

active capacity

means the capacity of the syndicate(s) under management in the fee year in question, including the capacity of syndicates that are not writing new business but have not been closed off in the year in question.

advanced IRB

means the internal ratings based approach for assessing credit risk referred to in Article 151(4) and (9) of the CRR.

advanced measurement approaches or AMA

means advanced measurement approaches to operational risk based on a firm’s own operational risk management systems as referred to in s312(2) CRR.

annual funding requirement or AFR

means, in respect of any fee year, the total ongoing costs of the PRA as determined by the PRA.

annual quantitative reporting template

means a reporting template set out in EU Regulation 2015/2450 or any other relevant Solvency II Regulations.

application

means a request to the PRA, in any format, for the PRA to exercise its functions in relation to the applicant or for approval, waiver or confirmation of any matter relating to the applicant.

assets outside expected RFB subgroups

means assets of a ring-fencing fees group which it has advised the PRA are not intended to be held by a ring-fenced body (or its UK sub-group for ring-fencing purposes) from 1 January 2019.

best estimate liabilities for fees purposes

means:

    1. (1) for UK Solvency II firms in the general insurance fee block (A3), the sum of items entered under row codes R0010, R0370, R0380, R0410 and R0420, column code C0180, of the annual quantitative reporting template S17.01.01, plus the sum of items entered under row codes R0010 and R0030, column codes C0090, C0140 and C0190, of the annual quantitative reporting template S12.01.01, as reported to the PRA;
    2. (2) for non-directive firms in the general insurance fee block (A3), a firm’s total gross technical provisions as reported to the PRA under item 19 of form 15, or where this is not reported because the firm is a marine mutual under the Insurance Companies – Reporting Part, item 29 of form M2, or where the firm is a friendly society, the balance sheet entry C3 claims outstanding where this entry is required under the Friendly Societies (Accounts and Related Provisions) Regulations 1994 (SI 1994/1983), and otherwise zero; and
    3. (3) for UK Solvency II firms in the life insurance fee block (A4), the sum of items entered under row codes R0010 and R0030, column codes C0150 and C0210, minus the sum of items entered under row codes R0010 and R0030, column codes C0090, C0140 and C0190 of the annual quantitative reporting template S12.01.01, minus corporate pensions business reported under column code C0180 of the annual quantitative reporting template S14.01.01, and minus 0.35 x unit-linked business which is not also corporate pensions business reported under column code C0180 of the annual quantitative reporting template S14.01.01. as reported to the PRA.

collection agent

means the agent, currently the FCA, designated from time to time by the PRA to collect and analyse tariff data from firms and to calculate, invoice and collect fees on its behalf.

consumer credit-related activity (ies)

means:

any of the activities 1 (a) – (m) in Part 2 or 3A; and

advising on regulated credit agreements for the acquisition of land under Article 53DA

of the Regulated Activities Order in the manner specified in Part 3 of the Regulated Activities Order as being relevant to those activities.

core deposit

means core deposits within the meaning of Article 2(2) of the FSMA (Ring-fenced Bodies and Core Activities) Order 2014.

corporate pensions business

means business reported using product ID codes 300-322 for the annual quantitative reporting template S14.01.01.

deposit acceptors fee block

means the fee block for firms whose Part 4A permission includes accepting deposits but does not include either of the following:

    1. (1) effecting contracts of insurance; or
    2. (2) carrying out contracts of insurance.

designated firms dealing as principal fee block

means firms whose Part 4A permission includes dealing in investments as principal where the PRA has designated ‘dealing in investments as principal’ a PRA regulated activity in respect of that firm.

directive friendly society

means a friendly society that is a UK Solvency II firm.

due date for payment

means the due date for payment of any fee under this Part, payment being required in cleared funds on or before 5pm on that day or, where it is not a business day, the next business day.

EU withdrawal costs

means the PRA’s costs associated with the United Kingdom’s withdrawal from the European Union, as determined by the PRA.

EU withdrawal costs fee block

means the firms which are liable to pay EU withdrawal costs as shown in Table VI of the Periodic Fees Schedule.

fee block

means firms conducting broadly similar regulated activities grouped together for the purposes of calculating and collecting fees as follows:

A0 - the minimum fee block

A1 – the deposit acceptors fee block

A3 – the general insurance fee block

A4 – the life insurance fee block

A5 – the Lloyd’s managing agents fee block

A6 - the Society of Lloyd’s fee block

A10 – the designated firms dealing as principal fee block

fee payer

means any firm or person required to pay a fee in accordance with this Part of the Rulebook.

fee tariff (s) or tariff

means a payment or scale of payments in accordance with the PRA’s fee-charging system.

fee year

means the PRA’s fee year, being twelve months from 1 March in one calendar year to the last day of February in the following calendar year.

first fee year

means the fee year during which a firm becomes authorised or receives an extended Part 4A permission in relation to PRA-regulated activity.

Form ELS

means the eligible liabilities return by which banks and building societies provide information to the Bank of England as required by the Bank of England Act 1998.

foundation IRB

means the internal ratings based approach for assessing credit risk referred to in Article 143(1) of the CRR.

general insurance fee block

means firms whose Part 4A permission includes effecting or carrying out contracts of general insurance or contracts of long term insurance other than life policies or firms whose Part 4A permission is insurance risk transformation.

gone into run-off

means that an insurer has acquired the following characteristics:

    1. (1) it has ceased to effect new contracts of insurance;
    2. (2) its permission for effecting contracts of insurance has been cancelled;
    3. (3) its exclusive remaining business is administering its remaining insurance liabilities;
    4. and
    5. (4) if required to do so, it has submitted a run-off plan to the PRA.

gross written premium for fees purposes

means:

    1. (1) for UK Solvency II firms in the general insurance fee block (A3), the total of items entered under row codes R0110, R0120 and R0130, as expressed in column code C0200 where this column is completed for those row codes, of the annual quantitative reporting template S.05.01.01, as reported to the PRA;
    2. (2) for non-directive firms in the general insurance fee block (A3), a firm’s gross premium written as reported to the PRA under item 11 of form 11, or where this is not reported because the firm is a Swiss general insurer or holds a relevant waiver, the entry at sheet 1, line 1, column 1, of form 20A, or where the firm is a friendly society, the income and expenditure account entry for gross premium written or contributions as income receivable, as appropriate under the Friendly Societies (Accounts and Related Provisions) Regulation 1994 (SI 1994/1983); and
    3. (3) for UK Solvency II firms in the life insurance fee block (A4), the item entered under row code R1410, column code C0300 of the annual quantitative reporting template S05.01.01 minus corporate pensions business reported under column code C0060 of the annual quantitative reporting template S14.01.01, and minus 0.35 x unit-linked business which is not also corporate pensions business reported under column code C0060 of the annual quantitative reporting template S14.01.01, as reported to the PRA.

Group internal model

means the internal models referred to in Articles 230 and 231 of the Solvency II Directive.

insolvency proceedings

means:

    1. (1) any proceedings under the Insolvency Act 1986 or Companies Act 2006 to have a firm declared insolvent or to wind up its business including, without limitation, administration, company voluntary arrangement, scheme of arrangement, receivership, administrative receivership, liquidation, sequestration or appointment of a trustee in bankruptcy;
    2. (2) any proceedings under the Banking Act 2009 special insolvency regime; or
    3. (3) any equivalent process in any jurisdiction outside the United Kingdom.

insurance business transfer scheme

means a scheme to transfer the whole or part of the business of an insurance undertaking or member or former member of the Society which meets the conditions of Part VII FSMA or, where applicable, the Financial Services and Markets Act 2000 (Control of Transfers of Business Done at Lloyd’s) Order 2001(SI 2001/3626).

internal model method or IMM

means the internal approach to counterparty credit risk referred to in Article 283 of the CRR.

Internal models approach or IMA

means the internal models approach referred to in Article 363 of the CRR.

international financial reporting standards or IFRS

means the international accounting standards issued by the International Accounting Standards Board, whether as adopted in the EU under Regulation 1606/2002 or otherwise.

late payment interest

means interest at the rate of 5% per annum above the official bank rate of the Bank of England from time to time in force.

life insurance fee block

means firms whose permission includes effecting or carrying out contracts of insurance which are, or include, life policies or entering into a funeral plan contract as provider.

Lloyd’s managing agents fee block

means firms whose permission includes managing the underwriting capacity of a syndicate as a managing agent at the Society.

model maintenance fee

means the fee or fees in 3.22.

modified eligible liabilities or MELs

means:

    1. (1) for banks and building societies their modified eligible liabilities relating to business conducted out of offices in the United Kingdom, calculated in accordance with the following formula:
      1. (1 + 2 + 3 + 4 + 0.6*5 + 6 - 8 - 9A - 9B - 10A - 10B - 10C - 11A - 11B - 0.6*12) + (1/3)*(F1 + F2 + F3 + F4 + 0.6*F5 + F6 - F8 - F9A - F9B - F10A - F10B - F10C - F11A - F11B - 0.6*F12)
    2. - 13M
    3. where each variable refers to an entry in Item B of Form ELS;
    4. and
    5. (2) for credit unions, modified eligible liabilities relating to their United Kingdom business only, being deposits with the credit union (that is its share capital) less the credit union’s bank deposits (investments + cash at bank).

minimum fee block

means the fee block comprising all firms referred to in Table I of the Periodic Fees Schedule.

new authorisations

means any application, or granting of an application, for (1) a Part 4A permission which includes a PRA regulated activity or (2) a top-up permission which includes a PRA regulated activity.

non-EEA branches

means United Kingdom branches of firms which are incorporated outside the EEA.

periodic fee(s)

means the fee or fees payable in accordance with Chapter 3.

Periodic Fees Schedule

means the schedule of periodic fees annexed to Chapter 3, which is replaced annually following the PRA’s fee rates consultation.

reattribution

means the process under which an insurer seeks to redefine the rights and interests of policy holders.

regulatory transaction fee(s)

means the fee or fees payable in accordance with Chapter 4.

ring-fencing fees group

means a banking group, or part of a banking group, which (i) has submitted forecasts to the PRA indicating that, from 1 January 2019, it will not meet the core deposit level condition in Article 12 of the FSMA (Ring-fenced Bodies and Core Activities) Order 2014 and (ii) has been notified by the PRA between 1 May 2017 and 1 May 2018 that a fee relating to the implementation of ring-fencing will be payable by one or more members of its group.

ring-fenced body or RFB

has the meaning in Section 142A of FSMA.

ring-fencing

means the UK ring-fencing regime as provided for in the Financial Services (Banking Reform) Act 2013, including statutory instruments and PRA rules made or to be made pursuant thereto.

ring-fencing implementation fee(s)

means the fee or fees in 3.18.

second fee year

means the fee year commencing on 1 March immediately following the end of the firm’s first fee year.

special project fee(s) or SPF (s)

means the fee or fees payable in accordance with Chapter 5.

Society of Lloyd’s fee block

means the fee block of which the Society is the sole member.

Solo internal model

means the internal model referred to in Article 112 of the Solvency II Directive.

tariff bands

means broad groupings of business volumes for the purpose of calculating periodic fees.

tariff base

means the PRA’s methodology for calculating volumes of business for the purposes of determining periodic fees.

tariff data

means information about a firm’s business used in the calculation of periodic fees.

tariff rate

means the rate of fee applied to a particular activity for the purpose of calculating periodic fees.

total assets for fees purposes

means for firms in the designated firms dealing as principal fee block (A10), the sum of the firm's assets as recorded at row 380 of data item template 1.01 of Annex III of the Supervisory Reporting ITS.

total operating income for fees purposes

means for firms in the designated firms dealing as principal fee block (A10), the sum of the firm's net operating income as recorded at row 355 of data item template 2 of Annex III of the Supervisory Reporting ITS.

Treaty firm

means, as defined in paragraph 1 of Schedule 4 of FSMA, a person whose head office is situated in an EEA state other than the United Kingdom and which is recognised by the law of that state as its national.

unit-linked business

means business reported using product ID codes 102, 112, 122, 132, 202, 212, 222, 232, 302, 312, 322, 622, and 722 for the annual quantitative reporting template S14.01.01.

valuation point

means the relevant date or period for assessing a firm’s tariff data and calculating periodic fees under Chapter 3.

2

Obligation to Pay Fees

Fees to be paid in full without deduction on the due date for payment

2.1

01/03/2016

All fees must be paid in full and without deduction on the due date for payment

2.2

01/03/2016

The due date for payment of:

  1. (1) periodic fees is as specified in 3.15;
  2. (2) regulatory transaction fees is as specified in 4.2;
  3. (3) special project fees is as specified in 5.8.

2.3

01/03/2016

As permitted by paragraphs 31(7) and 35 of Schedule 1ZB of FSMA, the PRA may take all steps and seek all remedies available to a creditor to recover, as a debt due to the PRA, any fee or other amount, such as interest, which remains unpaid after it falls due.

2.4

01/03/2016

The PRA may take regulatory action in relation to non-payment of fees in addition to, or instead of, any steps taken or remedies pursued under 2.3.

2.5

01/03/2016

Fee-payers must comply with directions, whether in an invoice, form, notice or otherwise, of the collection agent when acting in that capacity on behalf of the PRA.

Late payment interest

2.6

01/03/2016

Subject to 2.8, a fee payer who does not pay the full amount of a fee by the due date for payment will incur late payment interest on any unpaid part of the fee, accruing on a daily basis from the due date for payment until payment is made.

2.7

01/03/2016

The PRA will not charge interest on late payment interest.

2.8

01/03/2016

Relieving provisions

2.9

01/03/2019

If it appears to a firm in relation to any fee that in the exceptional circumstances of a particular case requiring payment or retaining a sum previously paid would be unduly burdensome or would not achieve the purpose for which the fee rule was made, a firm may apply to the PRA under section 138A FSMA for the PRA to: 

  1. (1) waive the payment;
  2. (2) reduce the amount payable; or
  3. (3) make a whole or partial refund of sums already paid.

2.10

01/03/2019

A claim by a fee payer under section 138A FSMA, in accordance with 2.9 and based on the fee payer’s error must be made within two years of the beginning of the period to which the fee relates.

3

Periodic Fees

Application, allocation to fee blocks and due date for payment

3.1

01/03/2016

Periodic fees are payable in respect of each PRA fee year by any person who is, or becomes, a firm during the fee year.

3.2

01/03/2016

The amount payable depends upon the fee block to which the firm has been allocated. Firms falling into more than one fee block pay periodic fees in relation to each.

Tariff bases, valuation points and the Periodic Fees Schedule 

3.3

28/06/2018

Periodic fees payable by firms in any fee year will be the sum of the following (so far as applicable to them):

  1. (1) a minimum periodic fee at the rate specified in Table IA of the Periodic Fees Schedule;
  2. (2) [deleted]; 
  3. (3) periodic fees at the rate specified in Table IIIA, subject to any modifications in Table IV and Table V, of the Periodic Fees Schedule calculated as follows:  
    1. (a) applying the tariff bases and valuation points set out in 3.4 to the tariff data which they have supplied to the PRA or its collection agent;
    2. (b) where applicable, grouping tariff data into the tariff bands shown in Column 3 of Table IIIA of the Periodic Fees Schedule; and
    3. (c) applying the appropriate tariff rate as shown in Column 4 of Table IIIA of the Periodic Fees Schedule;
  4.       the fee being the total of sums payable in respect of all tariff bands;
  5. (4) an EU withdrawal costs allocation calculated in accordance with Table VI, subject to any modifications in Table IV and Table V, of the Periodic Fees Schedule;
  6. (5) the ring-fencing implementation fee; and
  7. (6) [deleted.]
  8. (7) a model maintenance fee calculated in accordance with Table VIII of the Periodic Fees Schedule.

3.4

01/03/2019

The tariff bases and valuation points referred to in 3.3 (3)(a) are:

  1. (1) for firms in the deposit acceptors fee block (A1): 
    1. (a) if the firm is a bank and reports monthly, average MELs for October, November and December prior to commencement of the fee year; or
    2. (b) if the firm is a bank and reports quarterly, MELs for the December prior to commencement of the fee year; or
    3. (c) if the firm is a building society, average MELs for October, November and December prior to commencement of the fee year; or
    4. (d) if the firm is a credit union, either its MELs for the December preceding the commencement of the fee year  or, in the absence of December MELs its MELs as disclosed by its most recent annual return submitted for regulatory reporting purposes prior to the December preceding commencement of the fee year.
  2. (2) for firms in the general insurance fee block (A3) the firm’s gross written premium for fees purposes and its best estimate liabilities for fees purposes for the firm’s financial year which ends in the calendar year to 31 December prior to commencement of the fee year, unless the firm is a UK ISPV, in which case the tariff base is not relevant and a flat fee shown in Table IIIA of the Periodic Fees Schedule is payable, noting that:
    1. (a) this tariff base (A3) does not include gross written premium for fees purposes and best estimate liabilities for fees purposes on which a composite firm reports data relevant for the life insurance fee block (A4).
    2. (b) where any figure used in the calculation of this tariff base (A3) is a negative number, it shall instead be deemed to be zero.
  3. (3) for firms in the life insurance fee block (A4):
    1. (a) for UK Solvency II firms, including composite firms which are also UK Solvency II firms to the extent that they are required to report data used for this tariff base (A4), the firm’s gross written premium for fees purposes and its best estimate liabilities for fees purposes, for the firm’s financial year which ends in the calendar year to 31 December prior to commencement of the fee year;
    2. (b) for non-directive firms, including non-directive firms which are also composite firms to the extent that they come within the life insurance fee block, the tariff base is not relevant to the level of fees due and only the minimum fee as specified in Table IA of the Periodic Fees Schedule is payable. 
    3. (c) Where any figure used in the calculation of this tariff base (A4) is a negative number, it shall instead be deemed to be zero.
  4. (4) for firms in the Lloyd’s managing agents fee block (A5), active capacity as reported to  the Society for the underwriting year which is in progress at the beginning of the fee year.
  5. (5) for firms in the designated firms dealing as principal fee block (A10), total assets for fees purposes as at 31 December preceding commencement of the fee year and the firm’s total operating income for fees purposes for the four quarters ending on or before 31 December preceding commencement of the fee year.
  6. (6) For all firms, if the data source specified in the applicable tariff base is not available to the PRA for any reason and the same data is available to the PRA from an alternative source, periodic fees applicable to any firm under 3.3(3) will be calculated using that alternative source.
  7. (7) For firms in the designated firms dealing as principal fee block (A10), if, despite a firm having complied with its reporting obligations, fewer than four quarters of data for total operating income for fees purposes have been reported to the PRA, the arithmetic mean of the reported data shall be calculated, and multiplied by 4.

3.5

01/03/2019

The periodic fees payable by:

  1. (1) the Society are as specified in Table IIIA of the Periodic Fees Schedule.
  2. (2) [deleted]
  3. (3) [deleted]

Information for assessment of periodic fees 

3.6

01/03/2018

The following requirements apply to all firms whose activities give rise to periodic fees, other than firms which pay only a flat rate of fee: 

  1. (1) [deleted]
  2. (2) if the PRA does not, on its own behalf or through its collection agent, obtain sufficient, or sufficiently detailed, information, the PRA may obtain this through its general information-gathering powers;
  3. (3) for an incoming EEA firm or an incoming Treaty firm in the deposit acceptors fee block, the information required for the tariff base is in relation to the regulated activities of the firm carried on in the United Kingdom, other than those provided on a cross border services basis;
  4. (4) as periodic fees in respect of any fee year are calculated on the basis of firms’ tariff data for the previous fee year, there may be insufficient tariff data on which the periodic fees may be calculated under 3.4 where a firm becomes authorised for the first time or undertakes a new PRA-regulated activity, resulting in a significant change to its business. In those circumstances, the periodic fees payable will be calculated in accordance with:
    1. (a) 3.7 for firms in their first fee year;
    2. (b) 3.9 and 3.10 for firms in the deposit acceptors fee block (A1), the general insurance fee block (A3) or the life insurance fee block (A4) in their second fee year or any subsequent fee year;  
  5. (5) a firm intending to apply any of the methods of calculation in 3.9 must notify the PRA’s collection agent by the date specified in 3.6 (1).
  6. (6) Unless 3.7 or 3.9 applies, where a firm has not provided sufficient tariff data for any period by reference to which periodic fees are to be calculated, but a valuation is available for the previous period by reference to which periodic fees are to be calculated, the fee should be calculated using the tariff data applicable to the previous period multiplied by 1.10. An administration fee of £125.00 is payable in this case in addition to the minimum fee.

Firms becoming subject to periodic fees during the course of a fee year 

3.7

01/03/2016

A firm in its first fee year pays periodic fees based on its projected valuation for the first twelve months of its new business as follows: 

  1. (1) The calculation requires the firm to identify, in Table III of the Periodic Fees Schedule, the tariff rates which will be relevant to it as a result of its new or extended permission and apply the formula in 3.7 (2). The resulting figure will be the periodic fee payable by the firm for its first fee year.
  2. (2) The formula referred to at 3.7(1) is (A+B) x C, where:
    1. A = the amount arrived at by applying the tariff rates in Table III of the Periodic Fees Schedule to the firm’s projected valuation for its first year of new business, as provided to the PRA or its collection agent during the application and data collection process; 
    2. B = the A.0 minimum fee, unless already paid; and
    3. C = the number of calendar months (inclusive) between the calendar month during which the firm received its new or extended permission and the last calendar month of the fee year ÷ 12.

A1, A3 and A4 firms in their second and subsequent fee years where full tariff data not available 

3.8

01/03/2016

3.9

01/03/2018

Subject to 3.10, where in:

  1. (1) its second fee year; or
  2. (2) any subsequent fee year,

a firm has not submitted tariff data to enable the periodic fees calculation to be made in respect of that fee year, periodic fees will be calculated in accordance with Table A below:

Table A

Deposit acceptors fee block (A1)

Either:

  1. (1) if the firm is in its second fee year and received permission relevant to the activity between 1 January in its first fee year and 1 April in its second fee year, apply projected valuations as set out in 3.7;

or

  1. (2) apply the formula (A÷B) x 12 to arrive at an annualised figure, where
    1. A = its tariff base, as if its MELS for the month of December prior to commencement of the relevant fee year were its tariff base for the whole fee year; and
    2. B= the number of complete months in the period referred to in A.

General insurance fee block (A3) and life insurance fee block (A4)

Where under 3.4, the tariff base for an activity is to be calculated by reference to data for the firm’s financial year ending on the 31 December before the start of the fee year:

  1. (1) a firm which has not completed a full financial year by the start of the fee year should, if it is in its second fee year and received its new or extended permission relevant to the activity between 1 January in its first fee year and 1 April in its second fee year, apply projected valuations as set out in 3.7;
  2. (2) if the firm is a UK Solvency II firm outside the scope of item (1) above, and the PRA has either:
    1. (a) not received the necessary tariff data on a timely basis in line with the firm’s reporting obligations under the Reporting Part; or
    2. (b) deemed the tariff data received to be incomplete or insufficiently reliable, by reference to a specific firm or across all or part of a fee block;
  3.       the PRA may use tariff data from the previous reporting period for the periodic fees calculation; and
  4. (3) in any other case, apply the formula (A÷B) x 12 to annualise the tariff data it has available, where:
    1. A = its tariff base calculated by reference to tariff data for the period starting on the date the firm received permission for the relevant activity and ending on the earlier of the 31 December prior to the start of its second fee year or the 31 December prior to the start of the firm’s financial year; and
    2. B= the number of complete calendar months in the period referred to in A.

3.10

01/03/2016

Except in the circumstances to which 3.9 applies, firms in their second fee year or any subsequent fee year after receiving a new or extended permission must calculate their new or additional liability for periodic fees in accordance with 3.4.

Modifications to periodic fees for incoming EEA, Treaty firms and non-directive firms

3.11

28/06/2018

The following modifications to periodic fees will apply:

  1. (1) In relation to incoming EEA firms and incoming Treaty firms:
    1. (a) the modifications in 3.7 apply only in relation to the relevant regulated activities of the firm which are EEA passported activities or activities of a Treaty firm exercising rights under Schedule 4 of FSMA;
    2. (b) the tariff rates set out in Table IIIA of the Periodic Fees Schedule only apply to the regulated activities of the firm in the United Kingdom and the tariffs are modified in accordance with Table IV of the Periodic Fees Schedule; and
    3. (c) the EU withdrawal costs allocation in Table VI is modified in accordance with Table IV of the Periodic Fees Schedule.
  2. (2) Periodic fees in the A3 general insurance fee block and the A4 life insurance fee block payable by firms outside the scope of the Solvency II Directive are subject to the modifications in Table V of the Periodic Fees Schedule, to be applied to the final figure arrived at under 3.3(3) once all other modifications relevant to this part of the firm’s periodic fees have been taken into account.
  3. (3) The EU withdrawal costs allocation in Table VI payable by non-directive firms in the A1 deposit acceptors fee block, A3 general insurance fee block and A4 life insurance fee block is subject to the modifications in Table V of the Periodic Fees Schedule.

Firms acquiring businesses from other firms 

3.12

01/03/2018

Where:

  1. (1) a firm (A) acquires all or part of the business of another firm (B) in relation to which a periodic fee would have been payable by B; or 
  2. (2) A becomes authorised as a result of B’s simple change of legal status as defined in 4.5 (4), the following rules apply:
    1. (a) if before the date of the acquisition, B had already paid the periodic fees in relation to the business or part of the business acquired by A, A will not pay a further fee; and  
    2. (b) if the acquisition occurs after the valuation point applicable to the business or part of the business acquired as set out in 3.4, A will pay periodic fees in relation to the period following the acquisition as if the acquisition had occurred immediately before the relevant valuation point.
  3. (3) Where the acquisition involves a calculation of periodic fees for the A4 life insurers fee block:
    1. (a) [deleted];
    2. (b) If any business is transferred to A from B under the procedure set out in Part VII of FSMA and that business would have been included in B’s tariff base in the absence of the transfer, that business should be included in A or B’s tariff base depending on the date of transfer as required by 3.12(2)(b).  
    3. (c) Best estimate liabilities for fees purposes should include all new business transferred from B.

Firms applying to cancel or reduce the scope of their permission before the start of the fee year

3.13

01/03/2016

If a firm makes an application to cancel or reduce the scope of its Part 4A permission before the start of a fee year, the obligation to pay periodic fees under 3.1 will apply as if the relevant variation or reduction in scope had also taken effect immediately before the start of the fee year.

No waiver or refund of periodic fees after start of fee year 

3.14

01/03/2019

If, after the start of the fee year, a firm applies to cancel its Part 4A permission or if a new business activity or event which has given rise to a fee no longer applies to the firm, the firm is still liable to pay and will not be refunded periodic and other fees for that fee year, other than in cases where the PRA exercises its discretion under section 138A FSMA, in accordance with 2.9.

Time of payment

3.15

01/03/2016

The due date for payment of periodic fees is as follows:

  1. (1) Subject to 3.15 (3), any firm whose total liability for periodic fees in the previous fee year was less than £50,000 must pay the total periodic fee due for the current fee year in full by 1 August.   
  2. (2) Any firm whose combined total liability for periodic fees payable to the FCA and the PRA in the previous fee year was £50,000.00 or above must pay its periodic fees for the current year in two tranches as follows:
    1. (a)  an amount equal to 50% of the PRA periodic fee payable in the previous fee year on or before 1 April in the current fee year; and 
    2. (b) the balance of the periodic fee for the current fee year by 1 September.  
  3. (3) If a firm cancels its Part 4A permission in the way set out in Permissions and Waivers or the PRA has exercised its own-initiative powers to cancel a firm’s Part 4A permission, the total amount of periodic fees for the fee year, less any amounts already paid, become payable immediately before the cancellation takes effect.

Extension of time

3.16

01/03/2016

A fee payer need not pay a periodic fee on the due date for payment under the relevant provision of 3 if that date falls during a period during which circumstances described in General Provisions 2.2 exist and the firm has reasonable grounds to believe that those circumstances impair its ability to pay the fee, in which case the firm must pay on or before the fifth business day after the end of that period.

Compliance with year-end adjustments to AFR

3.17

01/03/2016

Fee-payers must comply with directions from the PRA or its collection agent as to payment of periodic fees arising from any variance between budgeted and actual AFR or any corrections to the AFR once final, audited figures are available in relation to any fee year. As the PRA may determine:

  1. (1) a surplus of fee income against AFR may result in a credit to firms or fee blocks; and 
  2. (2) a shortfall may necessitate a call for additional fees.

Ring-fencing implementation fee

3.18

28/06/2018

In the fee year commencing on 1 March 2017 and subsequent fee years:

  1. (1) The PRA will charge a ring-fencing implementation fee to recover the annual cost to the PRA, as determined by the PRA, of implementing ring-fencing.
  2. (2) All firms within ring-fencing fees groups are subject to ring-fencing implementation fees. The PRA may require that a single firm pays all ring-fencing implementation fees due to the PRA by the group.
  3. (3) In each fee year the PRA will allocate to each ring-fencing fees group the proportion referred to in 3.18 (4) of the cost referred to in 3.18 (1). An amount reflecting this proportion will be the total fee payable by the group.
  4. (4) The proportion referred to in 3.18 (3) was determined by the PRA for the 2018/19 fee year in accordance with the following formula (all figures rounded to the nearest whole number):

[(X + Y) ÷ 2] %

where

X = [core deposits (ring-fencing fees group) ÷ core deposits (all ring-fencing fees groups)] x 100

and

Y = [assets outside expected RFB sub-group (ring-fencing fees group) ÷ assets outside expected RFB sub-groups (all ring-fencing fees groups)] x 100

  1. (5) Fee payers must comply with directions from the PRA or its collection agent as to payment of ring-fencing implementation fees arising from any variance between the PRA’s budgeted costs under 3.18 (1) and its actual costs once final, audited figures are available in relation to any fee year. A surplus of fee income against the PRA’s actual costs may result in a credit to the firms making payment and a shortfall may necessitate a call for additional fees.
  2. (6) Where an application for a new authorisation or variation of Part 4A permission is made in the context of ring-fencing, no regulatory transaction fee will be payable under 4.5 or 4.7 if a ring-fencing implementation fee is payable under 3.18 whether by the applicant or another fee payer.

Transitional rules (A3 and A4 fee payers) for the 2017/18 fee year

3.19

01/03/2018

[deleted]

3.20

01/03/2018

[deleted]

3.21

28/06/2018

[deleted.]

3.22

01/03/2018

3.22 to 3.23 apply to CRR firms and UK Solvency II firms.

3.23

01/03/2019

In the fee year commencing on 1 March 2018 and subsequent fee years:

  1. (1) The PRA will charge a model maintenance fee to recover in whole or part the annual cost to the PRA, as determined by the PRA, of monitoring, reviewing and policy development for firms’ models for which permission has been granted under the CRR or the Solvency II directive
  2. (2) For firms with one or more models for which permission was granted before 1 March 2018, the model maintenance fee is payable for the fee year commencing on 1 March 2018 and in fee years thereafter.
  3. (3) Where a first or additional model permission is granted to a firm on or after 1 March 2018 and during the first six months of any fee year, the model maintenance fee for that model is payable as from the commencement of the first subsequent fee year and in fee years thereafter.
  4. (4) Where a first or additional model permission is granted to a firm on or after 1 March 2018 and during in the second six months of any fee year, the model maintenance fee for that model is payable as from the commencement of the second subsequent fee year and in fee years thereafter.  
  5. (5) The model maintenance fee is calculated in accordance with Table VIII of the Periodic Fees Schedule.
  6. (6) For a CRR firm or groupthe model maintenance fee shall be the sum of all fees applicable to that firm or group for each permitted model type. 
  7. (7) For composite firms which are also UK Solvency II firms, the model maintenance fee shall be determined by the fee block for which the firm or group pays the largest periodic fee under 3.3(3). 
  8. (8) For models incorporating more than one UK firm, the model maintenance fee shall be determined by reference to aggregated figures for all UK firms included within the scope of that model, and shall usually be payable by the firm which pays the largest periodic fee under 3.3(3) or otherwise by such firms and in such proportions as the PRA directs. To facilitate the aggregation calculation where a model incorporates one or more CRD credit institutions and one or more designated investment firms within its scope, for each designated investment firm which is also a UK firm, total assets for fees purposes shall be rounded to the nearest £1million, and each £1million of total assets for fees purposes shall be deemed equivalent to £0.4million in modified eligible liabilities. Total modified eligible liabilities shall then be added together for all UK firms within scope of the model. 
  9. (9) The Society shall not be required to pay a model maintenance fee.

Periodic Fees Schedule – Fee Rates and EEA/Treaty Firm Modifications for the Period from 1 March 2018 to 28 February 2019

28/06/2018

TABLE IA MINIMUM PERIODIC FEES RATES

Fee payer

Fee payable (£)

Credit unions with MELs under £2.0 million:

 

With modified eligible liabilities of 0 – 0.5 million 80.00
With modified eligible liabilities greater than 0.5million and less than 2.0 million 270.00

Non-directive friendly societies which either:

  1. (1) fall within the A3, but not the A4, fee block and have, in relation to their A3 activities, gross written premium for fees purposes of 0 - £0.5million and best estimate liabilities for fees purposes of 0- £1.0million; or
  2. (2) fall within the A4, but not the A3, fee block and have, in relation to their A4 activities, gross written premium for fees purposes of 0-£1.0 million and best estimate liabilities for fees purposes of 0-£1.0million; or
  3. (3) fall within both the A3 and A4 fee blocks and meet condition (1) above in relation to their A3 activities and condition (2) above in relation to their A4 activities.
215.00
All other firms 500.00

01/03/2018

TABLE II - TRANSITION COSTS ALLOCATION

[deleted]

28/06/2018

TABLE IIIA – PERIODIC FEE RATES APPLICABLE TO PRA FEE BLOCKS OTHER THAN THE MINIMUM FEE BLOCK FOR THE FEE YEAR 2018-19

Column 1
Fee block
Column 2
Tariff base
Column 3
Tariff bands
Column 4
Tariff rates
A1 deposit acceptors fee blockmodified eligible liabilitiesBand width (£million of MELs)Fee payable per million or part million of MELs(£)
>10 - 140 31.87
>140 – 630 31.87
>630 - 1,580 31.87
>1,580 - 13,400 39.84
> 13,400 52.59

A3 general insurers fee block
gross written premium for fees purposes + best estimate liabilities for fees purposes

gross written premium for fees purposesBand width (£million of gross written premium for fees purposes)Fee payable per million of gross written premium for fees purposes (£)
>0.5 494.81
best estimate liabilities for fees purposesBand Width (£ million of best estimate liabilities for fees purposes)Fee payable per million of best estimate liabilities for fees purposes (£)
>1 29.07
For UK ISPVs the tariff rates are not relevant and a flat fee of £430.00 is payable in respect of each fee year.
A4 Life insurers fee block
gross written premium for fees purposes + best estimate liabilities for fees purposes          
gross written premium for fees purposes     Band width (£million of gross written premium for fees purposes)Fee payable per million of gross written premium for fees purposes (£)
>1 255.17
best estimate liabilities for fees purposes   Band width (£million of best estimate liabilities for fees purposes)Fee payable per million of best estimate liabilities for fees purposes  (£)
>1 7.86
A5 managing agents at Lloyd’s     active capacity     Band width (£million of active capacity)Fee payable per million of active capacity (£)
>50 46.24
A6 Society of Lloyd’sflat fee N/A General periodic fee (£)
1,748,266.95

A10 Firms dealing as principal fee block

Trading assets + financial and operating income

 

 

 

trading assets

Band width (£million of trading assets) Fee payable per million or part million of trading assets (£) 
N/A 2.63
financial and operating income Band width (£million of financial and operating income) Fee payable per million or part million of financial and operating income (£) 
N/A 201.46

28/06/2018

TABLE IV – MODIFICATIONS TO PERIODIC FEES FOR INCOMING EEA FIRMS AND INCOMING TREATY FIRMS WITH BRANCHES IN THE UK

Fee payer

Discount applied to periodic fees

A1 deposit acceptors fee block 50%
A3 general insurers fee block 90%
A4 life insurers fee block 90%
[deleted.] [deleted.]
Incoming EEA firms and incoming Treaty firms offering cross border services only 100%
[deleted.] [deleted.]
[deleted.] [deleted.]

28/06/2018

TABLE V – MODIFICATIONS TO PERIODIC FEES FOR NON-DIRECTIVE FIRMS IN THE A1 AND A3 FEE BLOCKS

Fee payer

Discount applied to periodic fees in Table IIIA

Discount applied to EU withdrawal costs fee block

A1 deposit acceptors fee block 0% 50%
A3 general insurers fee block 11% 50%
[deleted.] [deleted.] [deleted.]

28/06/2018

TABLE VI – EU WITHDRAWAL COSTS ALLOCATION

Fee payer

Tariff base for allocations to firms

All firms, except those paying only the minimum fee and insurance special purpose vehicles Total periodic fees, excluding minimum fees, payable by the firm multiplied by 0.03540

28/06/2018

[deleted.]

01/03/2019

TABLE VIII – MODEL MAINTENANCE FEES

  Annual fee for CRR firms per model type(£)     Annual fee for UK Solvency II firms per group or solo internal model (£) 
Basis of scale, (aggregated figures for all UK firms within the scope of each model or model type)  IMA IMM IRB AMA A3 fee block A4 fee block
CRD credit institutions with modified eligible liabilities in excess of £40,000million, or designated investment firms with total assets for fees purposes in excess of £100,000million 55,000 75,000  100,000 25,000 - -
CRD credit institutions with modified eligible liabilities greater than £5,000million and less than £40,000million, or designated investment firms with total assets for fees purposes greater than £12,500million and less than £100,000million 20,000 30,000 40,000 10,000 - -
CRD credit institutions with modified eligible liabilities of £5,000million or less, or designated investment firms with total assets for fees purposes of £12,500million or less 8,000 12,000 16,000 4,000 - -
The sum of a firm’s best estimate liabilities for fees purposes and gross written premium for fees purposes is £1,000 million or more for firms in the general insurance fee block (A3), or for firms in the life insurance fee block (A4), £15,000million or more - - - - 160,000 210,000
The sum of a firm’s best estimate liabilities for fees purposes and gross written premium for fees purposes is greater than £300million and less than £1,000million for firms in the general insurance fee block (A3) or greater than £5,000million and less than £15,000million, or for firms in the life insurance fee block (A4) - - - - 65,000 80,000
The sum of a firm’s best estimate liabilities for fees purposes and gross written premium for fees purposes is less than £300million for firms in the general insurance fee block (A3) or less than £5,000million, for firms in the life insurance fee block (A4) - - - - 28,000

35,000

 

4

Regulatory Transaction Fees

Regulatory transaction fees – meaning and application

4.1

01/03/2016

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

Due date for payment of regulatory transaction fees

4.2

01/03/2016

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

4.3

01/03/2016

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

08/07/2017

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.

Regulatory transaction fees for new authorisations

4.5

30/06/2016

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.
Table B – New authorisations not involving consumer credit-related activities
Application type£
Straightforward:

A3 or A4 fee payer which is a friendly society

750.00
Moderately complex:

A3 fee payer seeking permission as a UK insurance special purpose vehicle

A5 fee payer seeking permission as a managing agent at Lloyd’s

2,500.00
Complex:

A1 fee payer (other than a credit union) seeking permission to accept deposits or operate dormant accounts

A3 fee payer (other than a friendly society or UK insurance special purpose vehicle

A4 fee payer other than a friendly society
12,500.00

 

Table C – New authorisations involving consumer credit-related activities
Application type £  

Straightforward:

Fee payer seeking permission for credit broking or providing information services.
     

Annual consumer credit income  £ Fee £
50,000.00 or less 300.00
Greater than 50,000.00 and less than 100,000.00 375.00
Greater than 100,000.00 and less than 250,000.00 500.00
Greater than 250,000.00 and less than 1,000,000.00 750.00
Greater than 1,000,000.00 2,500.00

Moderately complex:

Fee payer seeking permission for:

  1. (1) debt administration/debt collecting;
  2. (2) entering into regulated consumer hire agreement as lender (other than in relation to high-cost short term credit, bill of sale loan agreements and home credit loan agreements);
  3. (3) exercising or having the right to exercise the owner’s rights under a regulated consumer hire agreement;
  4. (4) exercising or having the right to exercise the lender’s rights and duties under a regulated consumer hire agreement (other than in relation to high-cost short term credit, bill of sale loan agreements and home credit loan agreements); or
  5. (5) operating an electronic system in relation to lending.  
Annual consumer credit income £ Fee £
50,000 or less 400.00
Greater than 50,000.00 and less than 100,000.00 500.00
Greater than 100,000.00 and less than 250,000.00 750.00
Greater than 250,000.00 and less than 1,000,000 2,500.00
Greater than 1,000,000.00 5,000.00

Complex

Fee payer seeking permission for:

  1. (1) debt adjusting/debt counselling;
  2. (2) entering into a regulated credit agreement as lender in relation to high-cost short term credit, bill of sale loan agreements and home credit loan agreements;
  3. (3) exercising, or having the right to exercise, the lender’s rights and duties under a credit agreement as lender in relation to high-cost short term credit, bill of sale loan agreements and home credit loan agreements; or
  4. (4) providing credit references.
Annual consumer credit income £ Fee £
50,000.00 or less 500.00
Greater than 50,000.00 and less than 100,000.00 625.00
Greater than 100,000.00 and less than 250,000.00 1,000.00
Greater than 250,000.00 and less than 1,000,000.00 3,500.00
Greater than 1,000,000.00 7,500.00
  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.

Exercise of Treaty rights

4.6

01/03/2016

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.

Variations of Part 4A permission and FCA authorised firms applying to carry on PRA regulated activity 

4.7

01/03/2016

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 activityregulatory 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.

Insurance business transfers under Part VII FSMA 

4.8

01/03/2019

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

01/03/2016

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

01/03/2016

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.

Ceding Insurer’s Waiver

4.11

01/03/2019

[deleted]

Model types

4.12

08/07/2017

[deleted]

4.12A

08/07/2017

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

4.13

08/07/2017

[deleted]

4.13A

08/07/2017

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

08/07/2017

[deleted]

4.14A

01/03/2018

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

01/03/2019

Table D - Model types under CRR

Applicant
(groupings based on tariff data submitted by firms as at 31 December in the fee year prior to the fee year in which the fee is payable).
Fee payable (£)
Where the application relates to CRD credit institutions or designated investment firms and includes five or more significant overseas entities within the same group. model type£
advanced IRB, IMM or IMA 268,000.00
foundation IRB 232,000.00
AMA 181,000.00

Where the applicant:

  1. (1) has modified eligible liabilities in excess of £40,000million; or
  2. (2) is a designated investment firm with total assets for fees purposes in excess of £100,000million.
 
model type£
advanced IRB, IMM or IMA 232,000.00
foundation IRB 198,000.00
AMA 146,000.00

Where the applicant:

  1. (1) has modified eligible liabilities greater than £5,000million and less than £40,000million; or
  2. (2) is a designated investment firm with total assets for fees purposes greater than £15,000million and less than £100,000million.
model type£
advanced IRB, IMM or IMA 94,000.00
foundation IRB 72,000.00
AMA 51,000.00

Where the applicant:

  1. (1) has modified eligible liabilities of £5,000million or less; or
  2. (2) is a designated investment firm with total assets for fees purposes of £15,000million or less.
model type£
advanced IRB, IMM or IMA 42,000.00
foundation IRB 30,000.00
AMA 24,000.00

4.14B

07/11/2017

  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.

01/03/2019

Table E – Internal model application fees

Applicant
(groupings based on tariff data submitted by firms as at 31 December in the fee year prior to the fee year in which the fee is payable)
Fee payable (£)
Group Internal Model (Full and Partial)
Sum of best estimate liabilities for fees purposes and gross written premium for fees purposes for groups in the general insurance fee block of £1,000million or more 268,000.00
Sum of best estimate liabilities for fees purposes and gross written premium for fees purposes for groups in the general insurance fee block greater than £300million and less than £1,000million 100,000.00
Sum of best estimate liabilities for fees purposes and gross written premium for fees purposes for groups in the general insurance fee block less than £300million 50,000.00
Sum of best estimate liabilities for fees purposes and gross written premium for fees purposes for groups in the life insurance fee block of £15,000million or more 268,000.00
Sum of best estimate liabilities for fees purposes and gross written premium for fees purposes for groups in the life insurance fee block greater than £5,000million and less than £15,000million
100,000.00
Sum of best estimate liabilities for fees purposes and gross written premium for fees purposes for groups in the life insurance fee block less than £5,000million 50,000.00
Solo Internal Model (Full and Partial)
Sum of best estimate liabilities for fees purposes and gross written premium for fees purposes for firms in the general insurance fee block of £1,000million or more 232,000.00
Sum of best estimate liabilities for fees purposes and gross written premium for fees purposes for firms in the general insurance fee block greater than £300million and less than £1,000million 80,000.00
Sum of best estimate liabilities for fees purposes and gross written premium for fees purposes for firms in the general insurance fee block less than £300million 42,000.00
Sum of best estimate liabilities for fees purposes and gross written premium for fees purposes for firms in the life insurance fee block of £15,000million or more 232,000.00
Sum of best estimate liabilities for fees purposes and gross written premium for fees purposes for firms in the life insurance fee block greater than £5,000million and less than £15,000million 80,000.00
Sum of best estimate liabilities for fees purposes and gross written premium for fees purposes for firms in the life insurance fee block less than £5,000million 42,000.00

4.15

08/07/2017

[deleted]

4.15A

08/07/2017

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.

Skilled persons

4.16

01/03/2016

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

01/03/2016

The due date for payment will be within 30 days of the invoice.

5

Special Project Fee for Restructuring

Application 

5.1

01/03/2016

In the circumstances described in this Chapter, a firm may be required to pay a special project fee for restructuring in addition to the other fees that it pays.

Events giving rise to an SPF for restructuring

5.2

08/07/2017

An SPF for restructuring becomes payable by a firm if it engages, or prepares to engage, in activity which involves it undertaking or making arrangements with a view to any of the following:

  1. (1) raising additional capital; or
  2. (2) a significant restructuring of the firm or the group to which it belongs, including without limitation:
    1. (a) mergers or acquisitions;
    2. (b) reorganising the firm’s group structure;
    3. (c) reattribution;
    4. (d) a significant change to the firm’s business model; and
    5. (e) a significant internal change programme.

5.3

01/03/2016

No SPF for restructuring is payable if the transaction only involves the firm seeking to raise capital within the group to which it belongs.

5.4

01/03/2016

An SPF for restructuring may also be payable by a firm if:

  1. (1) the firm becomes subject to insolvency proceedings or steps are taken by someone entitled to do so to commence insolvency proceedings against the firm; or 
  2. (2) either the Bank of England or HM Treasury has exercised a stabilisation power in respect of the firm under the Banking Act 2009.

5.5

01/03/2016

The PRA and the FCA will levy separate SPFs for restructuring and may do so in relation to the same event or circumstance.

5.6

01/03/2016

SPFs for restructuring, once paid, are non-refundable.

Payment calculation

5.7

08/07/2017

The SPF for restructuring is calculated as follows:

  1. (1) Determine the number of hours, or part of an hour, taken by the PRA in relation to regulatory work conducted as a consequence of the activities referred to in 5.2 or 5.4. The number of hours or part hours is as recorded on the PRA’s systems in relation to the work. 
  2. (2) Next, multiply the applicable rate in the table of SPF hourly rates below by the number of hours or part hours arrived at under 5.7(1): 
  3. SPF hourly rates

    Pay grade of persons employed by the PRA

    Hourly rate

    Administrator

    £50.00

    Associate

    £105.00

    Technical specialist

    £155.00

    Manager

    £195.00

    Any other persons employed by the PRA

    £290.00

  4. (3) Then add any fees and disbursements invoiced to the PRA by any third party provider in respect of services performed for the PRA in relation to assisting the PRA in performing the regulatory work referred to in 5.2 and 5.4.
  5. (4) The resulting figure is the fee.
  6. (5) Where an SPF for restructuring is charged and the restructuring directly affects more than one firm, the PRA may combine the total fees calculated under 5.7(4) in relation to that restructuring and reapportion those fees among all firms directly affected by the restructuring, using metrics which, in the opinion of the PRA, reflect the firms’ relative nature, scale and complexity.

Due date for payment and ongoing obligation in relation to SPFs

5.8

01/03/2016

The due date for payment of an SPF for restructuring is 30 days from the date of the invoice.

5.9

01/03/2016

The obligation to pay an SPF for restructuring is ongoing. There is no limit to the number of times that the PRA may invoice a firm for the SPF for restructuring in relation to the same events or circumstances.

5.10

01/03/2016

The SPF for restructuring is a single fee which may be payable under both 5.2 and 5.4.