The Banking Act 2009 (Wholesale Cash Oversight Fees) Regulations 2024 have been published, together with an explanatory memorandum. The Financial Services and Markets Act 2023 enabled the Bank of England to oversee certain firms recognized by HM Treasury in the wholesale cash distribution market. These Regulations set the scale of fees that the BoE may charge to these firms. The payment of these fees will reimburse the BoE for its costs incurred in connection with overseeing these firms. The BoE may charge: (i) an annual oversight fee which may not exceed GBP400,000 in any one calendar year; and (ii) a special projects fee if it considers that events require further supervision of a recognized firm up to a maximum of GBP150,000 in any one calendar year. The Regulations do not apply to persons that are recognized by HMT as having systemic significance for the wholesale cash distribution market. HMT does not expect in the near term to recognize any such firms and would make further regulations to provide a separate scale of fees if that should change.
The Regulations come into force on January 24, 2025.
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