Bank of England Levy Framework Document

BoE has released a consultation paper on the Framework Document for the Bank of England Levy (the Levy), with the intention of replacing the current CRD in 2024 (exact date TBA depending on the responses). Market participants should answer the following questions and send them to BoELevy@bankofengland.co.uk:
– Do you have any general comments or observations in relation to this CP and how the Levy will be charged and operate?
– Levy payers only: Do you need any further information from the Bank so that you are operationally prepared for the launch of the Levy?
The purpose of the Levy is „to recover the amounts required by the Bank in connection with the funding of its policy functions“ to review the functions to be funded in the upcoming year, proportionally.
Key points discussed in the consultation paper are:
– Institutions with liabilities over £600 million will be required to pay the Levy.
– The Levy is expected to cover costs related to exercising the policy functions, including costs associated with the preparation of moving from CRD to the Levy.
– Every year, mid-June, institutions can expect a notification of the costs for the current year and its proportional division among payees. The costs are subject to thorough analysis to ensure that they are as close to the actual costs as possible using the Bank’s „True up“ methodology. The payees will receive an invoice.