On 31 March 2023, the Prudential Regulation Authority (PRA) published Policy Statement 3/23: Financial Services Compensation Scheme (FSCS) – management expenses levy limit (MELL) 2023/4 (PS3/23). In PS3/23 the PRA confirms the FSCS’ MELL of £109.8 million for 2023/24. This includes:

  • The FSCS management expenses budget of £99.8 million to cover ongoing operating costs, including staff, facilities, claims handling, legal and other professional services, and a long-term investment plan.
  • An unveiled reserve of £10 million which allows the FSCS to raise additional funds at short notice to meet costs that were not foreseen, without the need for further consultation and rulemaking by the FCA and the PRA.

The MELL will apply from Saturday 1 April 2023, the start of the FSCS’s financial year, to Sunday 31 March 2024.

The FCA Board has also made its respective rule for the 2023/4 MELL.