PRA Regulatory Fees and Levies Proposals 2022/23
Friday 5 January 2024
PRA Regulated Fees & Levies Consultation Outcome – Update July 2022
The PRA has published the outcome to its fees and levies rates consultation for 2022-23, with the initial consultation proposals detailed in this briefing. This update sets out the final fees and levy rates to be paid by credit unions for 2022-23.
The PRA has decided to maintain the minimum periodic fees for all credit unions at the same level as the previous year. The final minimum fee to be paid to the PRA by credit unions according to their level of MELs* are shown in the table below.
| Type of Credit Union | MELs Range | Minimum Periodic Fee for 2022/23 |
| Small credit union | £0-£0.5m | £80 |
| Medium credit union | £0.5m-£2m | £300 |
| Large credit union | £2m+ | £600 |
Credit unions with greater than £10m Modified Eligible Liabilities (MELs) will also pay a tariff-based fee to the PRA on MELs above £10m.
Credit unions can calculate the amount they will be required to pay in regulated fees for 2022/23 to both the PRA and FCA using the FCA fees calculator.
The Prudential Regulation Authority (PRA) has published its annual fees and levies consultation, that proposes the regulatory fees to be charged for the upcoming financial year. This briefing highlights the content of the consultation paper relevant to credit unions.
The fees quoted in this briefing are proposals published by the PRA in April 2022 and can be subject to change, with the final fee levels be announced in July 2022 following stakeholder feedback on the proposals. Subsequently, ABCUL will respond to the annual PRA fees consultation on behalf of its membership. If you have any feedback on the proposed fee levels and structure, please share this by getting in touch at policy@abcul.org by 5pm on the 16th May.
Total Funding Requirement
The PRA’s Total Funding Requirement (TFR) is the total figure it proposes to collect in fees from all firms it regulates. The PRA has proposed to raise the TFR to £320.9m for 2022/23, from £296.6m in 2022/23. This proposed increase in the overall fees to be collected from firms is 8.2%.
Proposed Fees for Credit Unions
Despite the proposed increase in the TFR of 8.2%, the PRA’s fees consultation makes no proposals to change the minimum periodic fees paid by credit unions and other deposit-takers for 2022/23. However, the largest credit unions that pay a tariff-based fee in addition to the minimum fee will see an increase in the tariff rate they pay.
The minimum periodic regulatory fees paid by credit unions currently stand to remain at the levels shown in the table below. The level of minimum fee paid by credit unions is dependent on the dependent on credit union’s level of Modified Eligible Liabilities. Modified eligible liabilities for credit unions is defined by the Bank of England as their United Kingdom business only, being deposits with the credit union (that is its share capital) less the credit union’s bank deposits (investments + cash at bank).
| Type of Credit Union | MELs Range | Minimum Fee for 2021/22 | Proposed Minimum Fee for 2022/23 |
| Small credit union | £0-£0.5m | £80 | £80 |
| Medium credit union | £0.5m-£2m | £300 | £300 |
| Large credit union | £2m+ | £600 | £600 |
The largest credit unions, with over £10m in MELs, also pay a tariff-based regulatory fee on MELs over £10m. The projected tariff rate for 2022/23 is £34.950 per million of MELs above £10m, which represents an increase of 5.1% compared to the tariff rate of £33.242 per million of MELs above £10mfor 2021/22.
It is also projected in the proposal that all deposit-takers that pay the tariff-based regulatory fee will be returned a fee surplus for 2021/22. This will be returned to credit unions that pay a tariff rate fee during the 2022/23 fee year once the level of surplus is finalised.
Predicting Regulatory Fees Payable by your Credit Union
The fees quoted in this briefing are proposals published by the PRA in April 2022 and can be subject to change, with the final fee levels be announced in July 2022. Credit unions can predict both the PRA and FCA regulatory fees they will be due to pay based on the fees proposals for 2022/23 using the FCA fees calculator.*
* If using the FCA fees calculator to predict the regulatory fees your credit union will pay, please note that the that there is currently an issue with the calculator displaying the incorrect FCA minimum periodic fee proposed for credit unions with over £2m of MELs. The correct proposal for the minimum fee for this band is £606 rather than the quoted £875. We have been advised that the FCA are aiming to correct the error by the time that its annual fees are finalised in June.