On Apr. 11, UK PRA issued proposed fees and levies for 2024/25.
PRA published consultation paper containing proposed fees and levies for 2024/25.
On the same day, PRA issued business plan and strategy for 2024/25, see #208119.
Follows UK PRA Apr. 2023 issued proposals for fees and levies 2023/24, see #169515.
Consultation
Paper sets out fee rates to meet PRA's 2024/25 annual funding requirement (AFR).
Changes to internal model application fees, the model maintenance fee, and the fee payable for insurance business transfers under Part VII of FSMA 2000 (UK).
How PRA intends to allocate the surplus from the 2023/24 AFR and retained penalties.
\The AFR for 2024/25 is composed solely of the budgeted cost of ongoing regulatory activities, proposed amount is £331.3m, an increase of £22.0m (7%) on 2024/24.
Figure is provisional, may need to be revised when final estimates of costs available.
Proposed total funding requirement (TFR) for 2024/25 is £353.0m, increase of 11%.
To reduce impact to firms in 2024/25, PRA has taken 2 measures to levy firms £341m of the TFR, thereby limiting increase to firms to 7%; reduce AFR and retain surplus.
Risk to this approach is if the full budget is spent in 2024/25, PRA would need to recover difference from firms in 2025/26 in addition to any other increases that year.
Effectiveness
The closing date for submission of responses to the consulation is May 10, 2024.
PRA proposes implementation date for final changes would be Jul. 3, 2024.
