For levying purposes our cost structure comprises:
These are FSCS's overheads, split between base costs and specific costs.
All firms contribute to the base costs - the costs of running the Scheme which are not dependent on levels of activity - in proportion to the regulatory costs they pay to the PRA and/or FCA.
Specific costs are the costs of assessing claims and making payments. These are allocated to the relevant classes and then allocated to individual firms in accordance with firms' tariff bases.
The management expenses levy is subject to an annual limit, fixed by the UK regulators following consultation with the industry. All firms contribute to the base costs element of the management expenses levy.
These are payments made to or on behalf of claimants and are allocated to the relevant funding class. Firms in each class contribute to the related compensation costs, in line with their PRA or FCA tariff data. This means that levies are only raised in the first instance against firms that are authorised to carry out the same type of business that has given rise to compensation claims.
The Financial Conduct Authority website includes a searchable database of all firms authorised and regulated by the FCA and the Prudential Regulation Authority (PRA).