Published on 13 February 2019
Overview
This Prudential Regulation Authority (PRA) Policy Statement (PS) provides feedback to responses to Consultation Paper (CP) 28/18 ‘PRA fees and levies: Changes to periodic and transaction fees’ (see page 2 of 2). This PS is relevant to all PRA-regulated firms but particularly insurers and designated investment firms (DIFs), as well as firms which have, or intend to apply in the future for, Solvency II or Capital Requirements Regulation (CRR) models.
This PS sets out the PRA’s final policy on:
- a revised approach to periodic fees for DIFs;
- amending the approach to periodic fees for life insurers;
- updating the Part VII regulatory transaction fees for insurers;
- updating the internal model application fees for insurers;
- updating the internal model application and model maintenance fees for DIFs;
- updating the rules relating to the provision of relief from PRA fees in exceptional circumstances (all firms);
- other minor corrections to PRA fees rules (all firms); and
- updates to Supervisory Statement (SS) 3/16 ‘Fees: PRA approach and application’ (all firms).
Feedback to responses
The PRA received four responses to the CP. Feedback to these responses is set out in Chapter 2 of the PS.Implementation and next steps
The implementation date for the ‘PRA FEES AMENDMENT INSTRUMENT 2019’ and the updated SS3/16 ‘Fees: PRA approach and application’ is Friday 1 March 2019.
Policy Statement 3/19Published on 14 November 2018
Overview
This consultation paper (CP) sets out the Prudential Regulation Authority’s (PRA) proposals relating to:
- periodic fees for designated investment firms (DIFs);
- Part VII transaction fees for insurers;
- internal model application fees for insurers;
- internal model application and model maintenance fees for DIFs;
- rules relating to the provision of relief from PRA fees in exceptional circumstances;
- other minor corrections to PRA fees rules; and
- updates to Supervisory Statement (SS) 3/16 ‘Fees: PRA approach and application’.
The proposals aim to ensure that the methodologies for determining PRA fees for DIFs, life insurers and general insurers are appropriate to the risks these firms pose to the PRA objectives. Other changes set out in the CP are intended to ensure that fees relating to Solvency II models are applied consistently.
This CP is relevant to all PRA-regulated firms but particularly insurers and DIFs, as well as firms which have, or intend to apply in the future for, Solvency II or Capital Requirements Regulation(CRR) models. This CP is in addition to the usual, annual consultation on fees.
Implementation
The proposed implementation date for the proposals contained in this consultation is Friday 1 March 2019.
Responses and next steps
This consultation closed on Monday 7 January 2019. The PRA invites feedback on the proposals set out in this consultation. Please address any comments or enquiries to CP28_18@bankofengland.co.uk.