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.
This consultation is relevant to:
Please send feedback on the proposed FSCS MELL for 2020/21 by Monday 17 February 2020 to [email protected]. The PRA is accepting responses on our behalf.
Following consultation, we will consider responses and publish a Handbook notice by the end of March 2020.