PS26/4: Financial Services Compensation Scheme – Management Expenses Levy Limit 2026/27

Read PS26/4

Why we are changing the limit

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 is for

• FCA authorised firms
• PRA authorised firms

Background

Setting the right MELL makes sure the FSCS has enough funding to carry out its functions. The MELL applies from 1 April 2026 until 31 March 2027.

For more detail on how the MELL is calculated and the FSCS unlevied reserve, see the policy statement and the FSCS January 2026 budget update.