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). Management expenses are the operating costs of the FSCS.
The FSCS is the compensation fund of last resort for customers of failed authorised financial services firms across the PRA's and our regulatory remit. The MELL is the maximum amount that the FSCS may levy in a year without further consultation by the FCA and the PRA and is consulted on annually. The MELL being consulted on for 2018/19 is £77.66 million.
Note that FSCS compensation costs, which cover the compensation paid to consumers, are determined separately by the FSCS and are not consulted on.
Who this applies to
This consultation is relevant to all firms authorised by us and the PRA, but contains no material of direct relevance to retail financial services consumers or consumer groups upon which they might need to act.
What you need to do
The PRA is accepting responses on behalf of the FCA. Please send your responses by Friday 16 February to:
Email: [email protected]
Following the consultation, we will consider responses and publish either a Policy Statement or handbook notice setting out the rules, which will be effective from 1 April 2018.