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 PRA and the FCA sets a limit for the total management expenses that the FSCS can levy on financial services firms. 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 compensation costs, which are levied separately and decided by the FSCS.
The proposed MELL is £110.5 million for 2022/23, consisting of a management expenses budget of £95.5 million and an unlevied contingency reserve of £15 million. The proposed MELL would apply from Friday 1 April 2022, the start of the FSCS’s financial year, to Friday 31 March 2023.
Who this applies to
This consultation is relevant to all PRA and FCA authorised firms.
Respond to this consultation
We are asking for your responses to the proposed MELL set out in this consultation by Monday 14 February 2022. Please send your comments or enquiries to [email protected].
The PRA is accepting responses on behalf of both organisations, but both authorities will consider the responses.
After considering responses, the PRA will issue a Policy Statement and the FCA will issue a Handbook Notice so that the final rules are in place for the start of the FSCS’s financial year on Friday 1 April 2022.