PS3/21 | CP 21/20 PRA fees and levies: Holding company regulatory transaction fees

Policy Statement 3/21 | Consultation Paper 21/20

Published on 17 March 2021

PRA fees and levies: Holding company regulatory transaction fees – PS3/21

Overview

This Prudential Regulation Authority (PRA) Policy Statement (PS) provides the PRA’s final policy following Consultation Paper (CP) 21/20 ‘PRA fees and levies: Holding company regulatory transaction fees’ (page 2 of 2) in the form of amendments to the Fees Part of the PRA Rulebook (Appendix).

The PRA received no responses to this consultation.

This PS is relevant to PRA-authorised banks, PRA-designated investment firms, and their parent undertakings, which for this purpose comprise financial holding companies and mixed financial holding companies, as well as those intermediate holding companies that sit at the top of a sub-consolidation group. It is not relevant to credit unions or insurers.

In CP21/20 the PRA proposed to make a regulatory transaction fee of £2,500 payable in respect of an application for approval or exemption as a holding company made under section 192Q of the Financial Services and Markets Act 2000.

Implementation

The new rule will come into force from Friday 19 March 2021.

The proposals set out in this CP have been designed in the context of the UK having left the European Union and the transition period having come to an end. Unless otherwise stated, any references to EU or EU derived legislation refer to the version of that legislation which forms part of retained EU law.  The PRA will keep the policy under review to assess whether any changes would be required due to changes in the UK regulatory framework.

Appendix

Note: All content for this PS is included on this webpage. If you would like a PDF version of the PS, please use the ‘Convert to PDF’ button available below.


Published on 02 December 2020

PRA fees and levies: Holding company regulatory transaction fees – CP21/20

Overview

This Consultation Paper (CP) sets out the Prudential Regulation Authority’s (PRA) proposed rules in respect of regulatory transaction fees for applications for approval or exemption as a holding company.

The proposals in this CP would result in changes to the Fees Part of the PRA Rulebook (Appendix 1).

The CP is relevant to PRA-authorised banks, PRA-designated investment firms, and their parent undertakings, which for this purpose comprise financial holding companies (FHC) and mixed financial holding companies (MFHC), as well as those intermediate holding companies that sit at the top of a sub-consolidation group. It is not relevant to credit unions or insurers.

Capital Requirements Directive V (CRD V) introduces new requirements for certain types of parent FHCs or MFHCs that substantively control their group, to be subject to supervisory approval and consolidated supervision.

The Financial Holding Companies (Approval etc.) and Capital Requirements (Capital Buffers and Macro-prudential Measures) (Amendment) (EU Exit) Regulations 2020 extends powers to the PRA to supervise, monitor, exercise discretions, impose additional requirements, and enforce breaches of obligations in respect of approved FHCs and MFHCs. 

Implementation

The proposed implementation date for the proposal in this CP is Monday 1 March 2021.

Responses and next steps

This consultation closes on Friday 8 January 2021. The PRA invites feedback on the proposals set out in this consultation. Please address any comments or enquiries to CP21_20@bankofengland.co.uk.

Consultation Paper 21/20

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