9
Predictable and transparent charging structures
9.1
This chapter sets out the PRA’s expectations regarding charging structures, as required under Operational Continuity 3.3 and 3.3A. Appropriate charging structures for critical services can help to ensure that service provision can more easily be transferred, if needed, to another service provider during resolution or restructuring. This may include the development and implementation of a TSA and should support the capabilities described in Chapter 5 of this SS.
- 01/01/2023
9.2
Charging structures should be on terms that allow the service provider to be readily substituted with another service provider, such that critical services could be provided on an uninterrupted basis. The PRA’s expectations on charging structures vary according to firms’ service provision models:
- For all types of service provision model, charging structures for critical services must be predictable and transparent. The PRA expects that a charging structure should enable any future charges for critical services to be either known or calculable. The charging structure should be clear and easily understood, enabling firms to understand at a sufficiently granular level the charges for each critical service. This does not mean that the PRA expects payments for services to pass between business units of the same firm in the case of intra-entity critical service provision; and
- For intra-group and non-group providers, charging structures for critical services must also be set on arm’s-length terms.
- 01/01/2023