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.
Consultation paper CP21/2 Financial Services Compensation Scheme – Management Expenses Levy Limit 2021/22 is relevant to all firms authorised by the FCA and the PRA.
The FCA is accepting responses on behalf of both itself and the PRA, and is asking for comments by 19 February 2021. You can respond by email using the online response form or by phone on 0207 066 5416.
The FCA will then consider the responses received and issue a Handbook Notice. The PRA will issue a policy statement, so that final rules are in place for the start of the FSCS’s financial year on 1 April 2021.
To find out more about this or any other compliance related issue, contact a member of our expert team on 01925 765777, or email us at info@ukgigroup.com.