FSCS supplementary levies for 2019/20

Find out more about the Financial Services Compensation Scheme's (FSCS) supplementary levy.

On 16 January 2020, the FSCS announced that it would be raising a supplementary levy this year 

FSCS explained in its December 2019 edition of Outlook it expected to raise an additional levy to fund the increased claims volumes and new failures in the life distribution and investment intermediation class.

The levy will be partly funded by the investment, life insurance and structured deposits provider classes and is shared in proportion to the annual funding limits.

Read more about the categories that fund the life distribution and investment intermediation class in our Handbook (FEES 6 annex 3A).

FSCS is also making a levy repayment of surplus funds to the deposit class.

Read the FSCS letter to levy payers explains the reason for the supplementary levy (PDF)

The levy is based on the same data that was used to calculate the FSCS compensation cost levy as shown on a firm’s 2019/20 annual fee and levies invoice.

Table 1: Distribution of the £50m supplementary levy

FSCS class

FSCS category description

Tariff base

Levy share (rounded)

Estimated levy

CLII-1

Life distribution and Investment intermediation

annual eligible income (AEI)

£36.4m (72.7%)

£4.06 per £1,000 of AEI

CLII-2

Life insurance provision

relevant net premium income (RNPI) and eligible liabilities (EL)

£5.3m (10.6%)

£37.80 per £1m of RNPI and £1.33 per £1m of EL

CLII-3

Investment provision

annual eligible income (AEI)

£7.6m (15.2%)

£0.75 per £1,000 of AEI

CLII-4

Structured deposits provision

structured deposits (SD)

£0.8m (1.5%)

£592.24 per £1m of SD

Table 2: Deposit class £30m repayment 

FSCS class

FSCS class description

Tariff base

Estimated levy

SA01

Deposit

Protected Deposits (PD)

£31.50 per £1m of PD

Deposit class (SA01) levy is adjusted using the firm’s aggregate risk weight (ARW).

Online fees calculator

The supplementary levies are not included in the online fees calculator.

Cancelling firms: Firms that were authorised as at 1 April 2019 and applied to cancel their part IV permission part way through the current fee year and are still authorised are liable for their share of the levy.