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The Banking Act 2009 (Wholesale Cash Oversight Fees) Regulations 2024

S.I. 2024/1344 · Made 16 December 2024

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

BANKS AND BANKING

Made 16th December 2024

Laid before Parliament 17th December 2024

Coming into force 24th January 2025

The Treasury make these Regulations in exercise of the powers conferred by sections 206Z(2) and 259(1)(a) of the Banking Act 2009f1.

Annotations to the whole text

Footnotes

f1

2009 c. 1. Section 206Z was inserted by paragraph 1 of Schedule 9 to the Financial Services and Markets Act 2023 (c. 29).

Contents

  1. 1Citation, commencement and extent
  2. 2Scale of fees
  3. Signature
  4. Explanatory note

1Citation, commencement and extent

(1)

These Regulations may be cited as the Banking Act 2009 (Wholesale Cash Oversight Fees) Regulations 2024.

(2)

These Regulations come into force on 24th January 2025.

(3)

These Regulations extend to England and Wales, Scotland and Northern Ireland.

2Scale of fees

(1)

The Treasury approve the following scale of fees payable to the Bank of England by a recognised person who is recognised as having market significancef1 only (“R”)—

(a)

a fee for the supervision of R (“oversight fee”);

(b)

an additional fee (“special projects fee”) if the Bank of England considers that events require further supervision of R.

(2)

In any one year, the oversight fee for R must not exceed £400,000.

(3)

In any one year, the special projects fee for R must not exceed £150,000.

(4)

For any one year, the fees the Bank of England charges recognised persons who are recognised as having market significance only, taken together, must not exceed the total costs incurred by the Bank of England arising out of its supervision of such persons.

(5)

In paragraphs (2) to (4), “year” means a calendar year.

Signature

Anna Turley

Vicky Foxcroft

Two of the Lords Commissioners of His Majesty’s Treasury

16th December 2024

Explanatory note

(This note is not part of the Regulations)

These Regulations approve a scale of fees in relation to which the Bank of England may charge fees to certain persons recognised by order of the Treasury (“recognised persons”) for the purposes of Part 5A of the Banking Act 2009 (“the Act”). As at the date of laying of these Regulations, no such order has yet been made, but these Regulations are made in anticipation of that occurring.

Part 5A of the Act confers functions on the Bank of England that enable it to supervise recognised persons for the purpose of managing risks to the effectiveness, resilience and sustainability of wholesale cash distribution throughout the United Kingdom or any part of the United Kingdom.

The scale of fees approved by these Regulations applies only in respect of those persons recognised as performing a relevant function in relation to a wholesale cash distribution activity (see sections 206E and 206G(3) of the Act) and having market significance (see section 206H(2) of the Act). It does not apply to persons who have also been recognised as having systemic significance (see section 206H(3) of the Act).

The Bank of England may charge such a person:

  • an annual oversight fee which may not exceed £400,000 in any one calendar year;

  • a special projects fee if it considers that events require further supervision of that person up to a maximum of £150,000 in any one calendar year.

For any one calendar year, the fees the Bank of England charges such persons, taken together, must not exceed the total costs incurred by the Bank of England arising out of its supervision of such persons.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen.