Setting out its annual funding requirement in a statement last week, the PRA said it would refund the amount left over to firms and cut its annual funding requirement from £235.5m, the level it was at in 2013/2014, to £227.2m for 2014/2015.
The PRA has now launched a 13-page consultation due to end on 30 May on whether this funding target is appropriate and how costs to specific fee blocks should be determined.
However, a 16-page report issued by City law firm Ashurst has highlighted mixed industry views about the roles of the PRA and the FCA on the first anniversary of their creation.
It revealed a quarter of financial services firms said the so-called “twin peaks” regulatory arrangement, set up after the abolition of the former FSA, does not work.
The dual-regulated structure was described by respondents as “cumbersome and confusing” with potential for overlap.
Firms also believed there was “no co-ordination” between the two bodies.
Legal view
Karen Anderson, financial services regulation partner at City law firm Herbert Smith Freehills, said: “The regulators have in most areas set out their objectives and strategic approaches clearly.
“But they could do more to build on existing processes by specifically bringing together and sharing their experience of managing potential conflicts between prudential and conduct objectives.”
