The financial services industry will have to cough up £638.5m this year for the Prudential Regulation Authority and Financial Conduct Authority ‘twin peaks’ regulatory regime, 17 per cent more than the final year’s fee demand from the previous regulator.
Earlier this week FTAdviser revealed the FCA is set to collect £403m, while yesterday (2 April) the PRA, a division of the Bank of England, revealed a funding requirement for 2014 to 2015 of £227.2m.
The combined bill for the two regulators is therefore £638.6m, £95m more than was demanded by the FSA which demanded £543.5m in its 2012 to 2013 budget.
The overall increase in regulatory costs comes despite the PRA having an estimated surplus of £19.6m from the fees levied in 2013 to 2014.
This will be refunded to firms as part of the 2014 to 2015 fee collection process, which meant the PRA’s proposed annual funding requirement for 2014 to 15 was £227.2m, a decrease of 4 per cent on the 2013 to 2014 demand of £235.5m.
The PRA’s surplus stands in contrast to the £403m that the FCA had to request from firms, 2 per cent more than the £393m it took last year.
