Interim levy truing up complete – new invoices being sent out to firms on 31 January
29th January 2013
The Financial Services Compensation Scheme (FSCS) is sending levy invoices to firms after finishing the "truing-up" process for the 2010/11 interim levy. Following rebates on the 2010/11 levy which FSCS agreed for firms which submitted mistaken tariff data, firms in the investment fund management (SD01) and investment intermediation (SD02) sectors will be levied a total of £31m. This is the total amount payable after taking into account recoveries and a surplus of levied funds. Invoices will start going to firms on 31 January.
Levies will be raised on restated data, where accepted by FSCS. Firms will receive a full statement of account for the 2010/11 levy year, showing the original levies raised, any rebates or credit notes and the revised levy. Any future recoveries relating to 2010/11 will be accounted for as a separate exercise.
The issue arose because some investment firms wished to revise figures for their annual eligible income in their tariff data submissions. The FSA uses these to calculate FSCS levies.
However, thousands of firms will not receive a bill after FSCS decided not to levy any firms owing less than £50, as the costs of doing so would be disproportionate. This will save the cost of raising 4,340 invoices and means only £30,000 of the levy will not be collected. However, 394 investment intermediation firms and 566 investment management firms will receive a levy invoice. Not quite half of the 960 firms to receive an invoice will be billed between £50 and £1,000. And 285 will get invoices ranging from £1,000 to £10,000. However, four investment fund managers will receive invoices for more than a million pounds while 78 will receive invoices of more than £100,000.
FSCS Chief Executive Mark Neale says: "This levy will close the tariff data resubmission and the 2010/11 interim levy truing-up exercise. This has been a highly complex issue and involved reviewing scores of requests from firms to resubmit their correct tariff data. We are pleased the issue is now closed and thank firms for their patience while we completed the process."
• Outlook: November 2012 – which updates on Reporting of annual eligible income from collective investment schemes and on 2010/11 tariff data resubmissions