How much is the FSCS levy?

The Financial Services Compensation Scheme (FSCS) has confirmed its levy for 2020/21. FSCS will levy firms £649m this year, £14m more than was forecast in its Plan and Budget 2020/21 that was published in mid-January.

How are FSCS levies calculated?

Compensation and Specific Costs Levy: The Specific and Compensation costs are calculated by reference to the share of the firm’s tariff data as a proportion of the total FSCS tariff data (in each FSCS class).

How are FCA fees calculated?

We divide a fee-block’s proportion of the AFR by the total ‘tariff base’ of all the firms in the block. This gives us a fee rate per unit. We then calculate a firm’s fee by multiplying its tariff base by the fee rate.

How is FSCS funded?

We’re able to pay our customers compensation because we are fully funded by the financial services industry. Firms authorised by the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) pay us an annual levy which funds the cost of running our service.

Is there limit on amount that can be levied on FSCS?

Following consultation, the Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) set a limit on the amount that can be levied on each funding class in a year, by reference to what each class can be expected to afford in a year.

What are the two elements of the FSCS Levy?

The FSCS levy is made up of two elements: •Management expenses; and •Compensation costs. – covers the costs of running the compensation scheme. (operating costs that are directly related to the payment of compensation arising from valid claims).

What are the limits of the FCA Levy?

The class limits are set out in the FCA Handbook and the PRA Rulebook, in both cases at FEES 6 Annex 2. For the levy year 2019/20, the limits are: Deposits: £1,500m. Life and pensions provision: £690m. General insurance provision: £600m.

When does the Mell apply for the FSCS?

The FSCS MELL will apply for the financial year ending Thursday 31 March 2022. In this Consultation Paper (CP), we – the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) – set out proposals for the Management Expenses Levy Limit (MELL) for the Financial Services Compensation Scheme (FSCS) for 2021/22.