Link(s):
CP25/1: Financial Services Compensation Scheme – Management Expenses Levy Limit 2025/26 | FCA
CP25/1: Financial Services Compensation Scheme – Management Expenses Levy Limit 2025/26
Context
The FCA has published its annual Consultation, in conjunction with the PRA, setting out the proposals for the FSCS 2025/26 Management Expenses Levy Limit (MELL). The MELL is the maximum amount the FSCS may levy in a financial year.
Key points to note and next actions
- The 2025/26 MELL proposal is £108.8m, comprising a management expenses budget of £103.6m and an unlevied reserve of £5m.
- The FCA states that “although the proposed MELL is higher in nominal terms than the 2024/25 MELL, it is lower in real terms”.
- For more detail on how the MELL is calculated and the FSCS unlevied reserve, read chapter 2 of this Consultation and the FSCS January 2025 budget update.
- Most of the components of the FSCS annual management expenses are expected to fall, other than for staff costs (including contractors), facilities, IT and overheads.
- The Consultation closes on 7th February.