Contribution group balances

Fund balances 2007/08

The "clean break" transitional arrangements of the new funding model required FSCS to confirm the fund balances at 31 March 2008 for each of the former contribution groups. Relevant firms will then be credited with their share of the balance of funds accumulated at 31 March 2008 in those former contribution groups of which they were members, or issued with a debit note if the contribution groups, as in A7 and A9, were in deficit. Firms will only qualify to receive credit or debit notes in respect of a previous contribution group if they were a member of that previous contribution group at both 1 April 2007 and 31 March 2008.

At the close of business on 31 March 2008, FSCS fixed the contribution group fund balances for each of the former contribution groups and identified how much each qualifying firm was either owed by, or owed to, FSCS.

As at 31 March 2008, the total positive contribution group fund balances amounted to £108.81m as follows:

Excluding A1 deposits ^{_{(see * below),}} the total contribution group fund balances of £106.98m compares to an estimated total of £103.4m at the time of the levy announcement. Claims volumes, and so costs, continued to slow during the last few months of 2007/08. This meant that the fund balances for most of the former contribution groups were higher than previously anticipated.

FSA, acting as agents for FSCS, will include a firm-specific credit or debit with a firm's 2008/09 consolidated fees and levies invoice, in a way that is clearly identifiable.

Firms that were not members of previous contribution groups but are now allocated to relevant sub-classes will pay their share of the full 2008/09 funding requirement for that sub-class(es), without adjustment for credits or debits.

Firms can find more information on the FSA's website, including the fees calculator.

* The transitional requirements for money transferred from the Deposit Protection Board (DPB) restricts the use of this money to deposit claims and related funding needs. The funds will continue to be used to pay claims against deposit-takers, such as credit unions, and have been used to reduce the 2008/09 funding requirement in the deposit class under the new funding regime.

** This balance is net of a £40m refund to some 250 firms in the A3 contribution group in January 2008.

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