There are limits to the amounts FSCS can levy in a financial year. These are set out in the FCA Handbook and the PRA Handbook in both cases at FEES 6 Annex 2. For compensation payments the limits for each sub-scheme are:
Any costs exceeding these thresholds for the FCA classes would trigger the retail pool and be shared more widely.
Where costs exceeded the threshold in one of the FCA classes made up of intermediaries, the FCA provider contribution classes would also pay toward the costs. The levy limits for the FCA provider contribution classes are:
The management expenses levy is subject to an annual limit, following consultation with the industry by the UK regulators
The amount levied for compensation payments is the amount of compensation paid plus an estimate of the compensation costs we expect to pay in the 12 months following the levy date, assumed to be 1 July each year, allowing for any retained fund balances. The management expenses levy is subject to an annual limit but is based on our budget requirements for each year.
In general we would expect to levy once a year. However, subject to the limits above, we may make additional levies during the year, if necessary.
FSCS levies are included on a single invoice covering PRA, FCA, FOS and FSCS fees, which is sent out by the FCA. The FCA has establishmed arrangements for firms who wish to spread the costs of fees and levies. Details of these arrangements are available from the FCA.
The Financial Conduct Authority website includes a searchable database of all firms authorised and regulated by the FCA and the Prudential Regulation Authority (PRA).