Levy amounts
2008/09 initial levy announcement in April - £131.7m. Net levy £28.3m
This is the first levy produced by FSCS under a new funding regime set up by the Financial Services Authority (FSA). The new system established five new funding classes to replace the previous 12 contribution groups. They are:
- deposits:
- general insurance;
- life and pensions;
- investments; and
- home finance.
With the exception of deposits, these five broad classes are divided into sub-classes based on provider/intermediation activities. The levy for each of these sub-classes for 2008/09 is in the table below.
Sub-class |
£'m |
|
A1 Deposits |
5.0 |
|
|
|
|
B1 General Insurance - provision |
73.8 |
|
B2 General Insurance - intermediation |
2.0 |
|
|
|
|
C1 Life & pensions - provision |
1.0 |
|
C2 Life & pensions - intermediation |
32.0 |
|
|
|
|
D1 Investments - fund management* |
8.5 |
|
D2 Investments - intermediation |
8.0 |
|
|
|
|
E1 Home finance - provision |
0.0 |
|
E2 Home finance - intermediation |
1.4 |
Total levy amount |
131.7 |
|
Aggregated credit and debit notes to 31 March 2008 (estimated) |
(103.4) |
Net new money |
28.3 |
Costs for any potential claims relating to Pacific Continental Securities are not included in these figures.
* The main drivers of costs in this sub-class relate to the costs of split capital investment trust claims against Exeter Fund Managers Ltd and BFS. There was a projected funding deficit for splits claims relating to the previous contribution groups A7 & A9 as at 31 March 2008. This deficit arose because no levy was raised for these splits costs during 2006/07 and 2007/08. The majority of Exeter claims have been allocated to the former A9 contribution group and the majority of BFS claims have been allocated to the former A7 contribution group.
