The PRA and FCA have published a joint consultation paper on the management expenses levy limit (MELL) for the Financial Services Compensation Scheme (FSCS) for 2016/17. The MELL consulted on for 2016/17 is £72.2m consisting of:
- FSCS management expenses of £67.4m (the amount that will be levied for 2016/17); and
- a contingency reserve of £5.3m that allows the FSCS to levy additional funds, most likely at relatively short notice, to meet unforeseen contingencies.
The MELL ensures that the FSCS has suitable funding so that it is capable of exercising those functions conferred on it by Part XV of the Financial Services and Markets Act 2000. The MELL is consulted on annually.
The deadline for comments on the joint consultation paper is 15 February 2016. The PRA and FCA will consider the feedback and issue respective policy statements or equivalent Handbook notices (as appropriate) on the final MELL in order that the amended PRA and FCA rules can be in place for the start of the FSCS’s financial year on 1 April 2016.
View FSCS – Management Expenses Levy Limit 2016/17, 18 January 2016