| Link(s): |
| PS26/4: Financial Services Compensation Scheme – Management Expenses Levy Limit 2026/27 | FCA |
Context
The FCA and PRA have confirmed the annual Management Expenses Levy Limit (MELL) for the Financial Services Compensation Scheme (FSCS) for the financial year 2026/27 will be £112,972,954.
Key points to note and next actions
- 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 FCA and PRA are required to set a limit on the total management expenses that the FSCS can levy financial services firms. Setting the right MELL makes sure the FSCS has enough funding to carry out its functions.
- For more detail on how the MELL is calculated and the FSCS unlevied reserve, see the Policy statement and the FSCS January 2026 budget update