We and the Prudential Regulation Authority (PRA) consulted on proposals for the annual Management Expenses Levy Limit (MELL) for the Financial Services Compensation Scheme (FSCS) for the financial year 2021/22.
Why we are consulting
The FCA and PRA are required to set a limit on the total management expenses that the FSCS can levy financial services firms. The MELL covers the FSCS’s ongoing operating costs and includes the FSCS’s IT, staff, legal and outsourced and internal claims’ handling costs. It does not include compensation costs, which are levied separately and decided by the FSCS.
Who this applies to
- All firms authorised by the FCA and the PRA
This CP is not of direct relevance to retail financial services consumers or consumer groups and they do not need to act on it.
This consultation has now closed. The FCA will publish feedback on responses in a Handbook Notice and the PRA will issue a Policy Statement once we have reviewed your comments.