Levy information and retail pool

Levy class limits

Following consultation, the Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) set a limit on the amount that can be levied on each funding class in a year, by reference to what each class can be expected to afford in a year.

The class limits are set out in the FCA Handbook and the PRA Rulebook, in both cases at FEES 6 Annex 2.

For the levy year 2021/22, the limits are:

PRA classes

  • Deposits: £1,500m.
  • Life and Pensions Provision: £690m.
  • General Insurance Provision: £600m.

FCA classes

  • General Insurance Distribution: £410m (including provider contribution of £100m)*.
  • Investment Provision: £200m.
  • Life Distribution and Investment Intermediation: £330m (including provider contribution of £90m)*.
  • Home Finance Intermediation: £55m (including provider contribution of £15m)*.
  • Debt Management: £20m.
  • Deposit Acceptors: £105m (only if the retail pool is triggered).

* Since 1 April 2019, product providers are required to contribute approx. 25% of the levies falling to the FCA intermediation classes, from the first pound.

When does FSCS raise a retail pool levy?

If the funding requirements of levies of an FCA funding class exceed the levy limit for that class, the excess costs are covered by the other FCA classes as part of the retail pool. This is a separate pot that all FCA classes are required to contribute to, where they have not reached their levy limit. It is only used when one class exceeds its annual levy limit. 

All FCA funding classes can benefit from and contribute to the retail pool (with the exception of Deposit Acceptors, which can only contribute to the retail pool).

When does FSCS raise a supplementary levy?

While we can't state categorically the circumstances that would give rise to a supplementary levy, there are some general guidelines.

Historical levy information