Context
The FCA and the PRA have jointly published a Consultation in relation to the 2024/25 Management Expenses Levy Limit (MELL) for the FSCS. It is accompanied by an Appendices document, with Appendix 4 in the document (on page 8) setting out the proposed 2024/25 FSCS management expenses by funding class.
Key points to note and next actions
- The proposed MELL is £108.1m for 2024/25. This consists of a management expenses budget of £103.1m and an unlevied reserve of £5m. This is a reduction of £1.7m from the 2023/24 MELL of £109.8m.
- The proposed 2024/25 levy allocation for the General Insurance Distribution fee block is £0.8m, which represents a 51% drop from the £1.7m levy allocation in 2023/24.
- The proposed MELL would apply from Monday 1 April 2024, the start of the FSCS’s financial year, to Monday 31 March 2025.
- This consultation closes on Monday 12 February 2024. The PRA and the FCA invite responses on the proposals set out in this consultation; comments or enquiries should be addressed to CP1_24@bankofengland.co.uk (the PRA is accepting responses on behalf of both authorities). After considering responses, the PRA proposes to issue a policy statement and the FCA proposes to issue a Handbook Notice so that the final rules can be in place on 1 April 2024.