On 25 March 2022, the PRA published Policy Statement 3/22 ‘Financial Services Compensation Scheme – Management Expenses Levy Limit 2022/23’ (PS3/22).
In PS3/22 the PRA provides feedback to the responses to Consultation Paper 1/22 ‘Financial Services Compensation Scheme – Management Expenses Levy Limit 2022/23’ (CP1/22). It also contains the final rules for the Financial Services Compensation Scheme (FSCS) Management Expenses Levy Limit (MELL) for 2022/23.
The PRA has decided to publish the policy as proposed in CP1/22.
In CP1/22, the PRA and FCA consulted on a proposed MELL of £110.5 million for 2022/23. This included:
- FSCS management expenses of £95.5 million to cover the FSCS’ ongoing operating costs including staff, facilities, claims handling, legal, and other professional services.
- An unlevied reserve of £15 million which allows the FSCS to levy additional funds at short notice in the event of a significant unexpected event, without the need for further consultation by the PRA and the FCA.
The FSCS MELL will apply for the financial year ending Friday 31 March 2023.