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.
- 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.