The Bank of England (BoE) has published a consultation for proposed fee increases for financial market infrastructure (FMI) supervision. The new fees, which will come into force in Q3 2023 for the 2023/24 fee year, will apply to all UK and incoming CCPs, CSDs, as well as payment systems and service providers that currently pay FMI supervisory fees to the BoE or are planning to do so within the relevant fee year.

BoE’s annual FMI supervisory fee covers costs related to staffing, policy support, specialist resources and more. The bank states in the consultation paper that the increase has been proposed to reflect the additional resources required in some functions covered by the fees. Expected total cost for the upcoming 2023/24 fee year is £13.8 million, a 19 percent increase from the total of £11.6 million in fees levied in the preceding 2022/23 fee year.

The new fees will represent an increase of five percent for CCPs, four percent for CSDs, and eight percent for payment systems and service providers compared to the preceding year. BoE attributes the increases for CCPs and CSDs to chargeable policy work as a number of initiatives that will impact supervised firms take effect. For payment systems and service providers, greater supervisory activity is the cost driver.

PostTrade 360 Nordic 2024

The consultation will close on 21 September 2023.