On 2 December 2020, the PRA published Consultation Paper 21/20: PRA fees and levies: Holding company regulatory transaction fees (CP21/20).
The Capital Requirements Directive V introduces new requirements for certain types of parent financial holding companies (FHCs) or mixed financial holding companies (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.
In CP21/20 the PRA proposes that a regulatory transaction fee of £2,500 will be 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. The proposed fee amount has been set to recover the approximate costs to the PRA of assessing each application, including related system changes and other linked regulatory transactions. The PRA will keep these costs under review and will consider consulting on changes to the fee should there be a material change in costs. The proposed implementation date for the fee is 1 March 2021.
The deadline for comments on CP21/20 is 8 January 2021.