Explanatory note

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.