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 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 claimants’ compensation costs.
The proposed MELL for 2020/21 is £83.2 million, consisting of a management expenses budget of £78.2 million and an unlevied contingency reserve of £5 million. The contingency reserve is an important part of the FSCS’ contingency planning and allows the FSCS to raise additional funds if required at short notice.
Who this applies to
This consultation is relevant to:
- all PRA and FCA authorised firms
This consultation has now closed. We will consider responses and publish a Handbook notice by the end of March 2020.
10/03/2020: Information added Consultation closed