The Bank of England is to return a total of £8m to banks and insurers in regulatory fees following last year’s fine against Royal Bank of Scotland over the bank’s IT meltdown.
In its 2015/16 budget, published yesterday, the Bank said it would return £4m across regulated firms from general unspent budget, and £2.5m to insurers after it underspend on a Solvency II special project fund.
It also said £1.5m would be refunded under the Prudential Regulatory Authority’s financial penalty scheme.
The PRA issued a fine of £14m in November against Royal Bank of Scotland for IT failures in 2012 that let customers unable to access cash from their accounts. The FCA separately fined the bank £42m.
The RBS money will be distributed across firms regulated by the PRA, with the largest chunk going to banks.
RBS will not receive any of the rebate.
Under Bank of England rules, recovered fines are passed to the Treasury, excluding enforcement costs referred to as “retained penalties”, which are then refunded to regulated firms.
Surpluses will be refunded to firms as part of the 2015/16 fee collection process.
The Bank published the figures as part of a consultation document on its forecast costs for the year ahead.
Overall, the Bank expects its annual funding requirement to rise from £246.8m to £257.8m.
Final funding requirements will be confirmed following the consultation, which closes on 19 May.