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.
For the levy year 2019/20, the limits are:
- Deposits: £1,500m.
- Life and pensions provision: £690m.
- General insurance provision: £600m.
- General insurance distribution: £410m (including provider contribution of £100m)*.
- Life distribution and investment intermediation: £330m (including provider contribution of £90m)*.
- Home finance intermediation: £55m (including provider contribution of £15m)*.
- Investment provision: £200m.
- 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.
If the levies on an FCA funding class exceed the limit for that class, the excess is levied more widely on the other FCA classes as part of the retail pool.
All FCA funding classes benefit from and contribute to the retail pool (with the exception of deposit acceptors, which only can only contribute to the retail pool).