CP24/1: Financial Services Compensation Scheme - Management Expenses Levy Limit 2024/25

In a joint consultation with the Prudential Regulation Authority (PRA), we are consulting on the management expenses levy limit (MELL) for the Financial Services Compensation Scheme (FSCS).

Read CP24/1 Link is external The PRA and the FCA are required to set a limit on the total management expenses that the FSCS can levy on financial services firms. The MELL is the maximum amount the FSCS may levy in a year for its operating costs without further consultation. It does not include claimants’ compensation costs, which are levied separately and decided by the FSCS. Who this applies to This consultation is relevant to all PRA and FCA authorised firms who fund the FSCS through levies. Next steps This consultation has closed. The PRA published a policy statement on 28 March 2024 ( PS6/24 – Financial Services Compensation Scheme – Management Expenses Levy Limit (MELL) 2024/25 | Bank of England Link is external ) and the FCA issued updates to its Handbook through a Handbook Notice to give effect to the MELL that applies from 1 April 2024. Background The proposed MELL is £108.1m for 2024/25. This consists of a management expenses budget of £103.1m and an unlevied reserve of £5m. This is a reduction of £1.7m from the 2023/24 MELL of £109.8m. The proposed MELL would apply from Monday 1 April 2024, the start of the FSCS’s financial year, to Monday 31 March 2025.

: Information added Consultation closed.

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