4

Regulatory Transaction Fees

Regulatory transaction fees – meaning and application

4.1

This chapter does not apply to Gibraltar-based firms exercising entitlements under the Financial Services and Markets Act 2000 (Gibraltar) Order 2001.

Due date for payment of regulatory transaction fees

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Regulatory transaction fees incurred by a firm remain payable even if an application is withdrawn.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

Regulatory transaction fees for new authorisations

4.5

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

  1. (1) [Deleted.]
Table B – New authorisations
Application type£
Type 1:

A3 or A4 fee payer which is a friendly society or a fee payer which is an A1 credit union

1,500.00
Type 2:

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

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

5,000.00
Type 3:

A1 fee payer (other than a credit union) seeking permission to accept deposits

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

A4 fee payer other than a friendly society
25,000.00

Table C – New authorisations involving consumer credit-related activities [Deleted.]
  1. (2) [Deleted.]
  2. (3) Where an application for a new authorisation involves a simple change of legal status as defined in 4.5 (4), the fee payable for that 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 entitlements by a Gibraltar-based firm in line with 4.6A 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.

4.5A

A parent financial holding company or parent mixed financial holding company (both within the meaning of s192O of FSMA) shall pay a regulatory transaction fee of £2,500 in respect of an application for approval or exemption made under s192Q of FSMA (and such a fee shall be in addition to any other regulatory transaction fee payable).

4.6

[Deleted.]

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

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:
    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,
  4. the fee payable shall be £25,000.00.
  5. (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 A4 in respect of a friendly society, it shall be £1,500.00;
    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 £5,000.00.

Insurance business transfers under Part VII FSMA

4.8

The transferor seeking regulatory consent for an insurance business transfer scheme under Part VII of FSMA pays a regulatory transaction fee of £25,000, 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.

Ceding Insurer’s Waiver

4.11

[Deleted.]

Model types

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

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 360,000
foundation IRB 310,000
AMA 240,000

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 305,000
foundation IRB 260,000
AMA 190,000

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 125,000
foundation IRB 95,000
AMA 70,000

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 55,000.00
foundation IRB 40,000.00
AMA 35,000.00

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

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 330,000
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 125,000
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 62,500
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 330,000
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
125,000
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 62,500
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 290,000
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 105,000
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 52,500
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 290,000
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 105,000
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 52,500

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.

Skilled persons

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.