On 31 January 2019, the PRA and FCA jointly published Consultation Paper 19/9 (CP19/9) on the 2019/20 management expenses levy limit (MELL) for the financial services compensation scheme (FSCS). Under Section 223(1) of the Financial Services and Markets Act 2000, the FCA and the PRA must set an annual limit for the total management expenses which the FSCS can levy on financial services firms.
The proposed MELL for 2019/20 is £79.6 million and consists of:
- FSCS management expenses of £74.6 million; and
- an unlevied contingency reserve of £5.0 million.
The deadline for responses to CP19/9 is 28 February 2019.