| Link(s): | Financial Services Compensation Scheme – Management Expenses Levy Limit 2023/24 | FCA CP23/3: Financial Services Compensation Scheme – Management Expenses Levy Limit 2023/24 (fca.org.uk) |
Context
The FCA and Prudential Regulation Authority (PRA) are consulting on proposals for the annual Management Expenses Levy Limit (MELL) for the Financial Services Compensation Scheme (FSCS) for the 2023/24 financial year.
Key points to note
The FCA and PRA are required to set a limit on the total management expenses that the FSCS can levy financial services firms. The MELL covers the FSCS’s ongoing operating costs and includes the FSCS’s IT, staff, legal and outsourced and internal claims’ handling costs. It does not include compensation costs, which are levied separately and decided by the FSCS. The proposed MELL is £0.7 million lower than the 2022/23 MELL of £110.5 million.
Please send any comments on the proposed MELL using the online response form on the FCA’s website or by email. The FCA is accepting responses on behalf of both the FCA and the PRA, and both authorities will consider the responses.
Consultation closes on 9th February 2023, with a Policy Statement due to be in place for the start of the FSCS’s financial year on 1st April 2023.
Next actions
None – for information and awareness.