Consultation opened
12/01/2022
Consultation closed
14/02/2022
14/02/2022
In a joint consultation with the Prudential Regulation Authority (PRA), we are consulting on the management expenses levy limit (MELL) for the Financial Services Compensation Scheme (FSCS).
The PRA[2] and the FCA sets a limit for the total management expenses that the FSCS[3] can levy on financial services firms. The MELL covers the costs of operating the compensation scheme and is the maximum amount the FSCS may levy in a year without further consultation. It does not include compensation costs, which are levied separately and decided by the FSCS.
The proposed MELL is £110.5 million for 2022/23, consisting of a management expenses budget of £95.5 million and an unlevied contingency reserve of £15 million. The proposed MELL would apply from Friday 1 April 2022, the start of the FSCS’s financial year, to Friday 31 March 2023.
This consultation is relevant to all PRA and FCA authorised firms.
This consultation has now closed. After considering responses, the PRA has issued a Policy Statement[1] and the FCA has issued a Handbook Notice[4] so that the final rules are in place for the start of the FSCS’s financial year on Friday 1 April 2022.
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