Firms to receive £4.5m refund from PRA

The PRA will first allocate the refund across all fee blocks, and then to individual firms dependent on fee block population and tariff data.

In 2015/16 enforcement activity by the PRA resulted in fines and penalties of £1.3 million, which will also be refunded to firms across all the fee blocks indicated, excluding those firms that incurred the fines.

The PRA’s Annual Funding Requirement for 2016/17 is £257.3 million - a slight decrease of £0.5 million on the previous year.

However, changes in the balance of activities within the PRA will lead to "differing impacts on specific fee blocks, with some fee blocks increasing and others decreasing", according to a PRA statement.

There will be no fee for Solvency II in 2016/17 as implementation is now embedded into ‘business-as-usual’ activities.

However the implementation of the Banking Reform Act requires a "significant amount of work to be undertaken by the PRA" through to 2019 when the new ring-fencing regime takes effect. Starting from 2016/17, the PRA proposes to recover the costs associated with this work through a ring-fencing implementation fee which applies to firms that are ring fencing their core activities in line with the Act.

The PRA’s budgeted costs associated with the implementation of ring fencing in 2016/17 are £7.9 million, compared to £3.5 million in 2015/16.