Context
The FCA and the 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 financial year 2021/22.
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.
Key points to note
- This Consultation paper CP21/2 applies to all firms authorised by the FCA and the PRA.
- The FCA is accepting responses on behalf of both the FCA and the PRA and is asking for comments by 19th February 2021.
- Responses can be sent using the online response form, by email to: cp21-02@fca.org.uk or by telephone: 0207 066 5416.
Next actions
The FCA will consider the responses received and will then issue a Handbook Notice so that final rules are in place for the start of the FSCS’s financial year on 1st April 2021.