Consultation opens
11/01/2024
Consultation closed
12/02/2024
12/02/2024
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 are required to set a limit on the total management expenses that the FSCS can levy on financial services firms.
The MELL is the maximum amount the FSCS may levy in a year for its operating costs without further consultation. It does not include claimants’ compensation costs, which are levied separately and decided by the FSCS.
This consultation is relevant to all PRA and FCA authorised firms who fund the FSCS through levies.
This consultation has closed.
The PRA published a policy statement on 28 March 2024 (PS6/24 – Financial Services Compensation Scheme – Management Expenses Levy Limit (MELL) 2024/25 | Bank of England[2]) and the FCA issued updates to its Handbook through a Handbook Notice to give effect to the MELL that applies from 1 April 2024.
The proposed MELL is £108.1m for 2024/25. This consists of a management expenses budget of £103.1m and an unlevied reserve of £5m. This is a reduction of £1.7m from the 2023/24 MELL of £109.8m.
The proposed MELL would apply from Monday 1 April 2024, the start of the FSCS’s financial year, to Monday 31 March 2025.
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