Life insurers bear brunt of Bank of England’s increasing budget
Finance firms will stump up £246.8m this year to pay for their regulation from the Bank of England’s prudential regulation authority (PRA), the watchdog said yesterday.
The budget represents a four per cent annual rise.
Life insurers face the biggest increase, with their bill up nine per cent to £39.4m.
The PRA is charging them more as it needs to increase its pay levels to attract more and better regulators.
The second biggest hike will hit general insurers for the same reason – with their bill is going up six per cent to £30.4m.
And deposit acceptors, such as banks and building societies, are third in line for a hike.
They will pay £161.9m to the PRA, a rise of two per cent on the year.
Some of the costs should start to fall soon – £14.8m of the bill covers transitional costs as the PRA becomes established in its role.