PS26/4: Financial Services Compensation Scheme – Management Expenses Levy Limit 2026/27

We and the Prudential Regulation Authority (PRA) have confirmed the annual Management Expenses Levy Limit (MELL) for the Financial Services Compensation Scheme (FSCS) for the financial year 2026/27 will be £112,972,954.

Read PS26/4
Link is external

Why we are changing the limit
The FCA and PRA are required to set a limit on the total management expenses that the FSCS can levy financial services firms. The MELL covers the FSCS’s ongoing operating costs and includes the FSCS’s IT, staff, legal and outsourced and internal claims handling costs. It does not include compensation costs, which are levied separately and decided by the FSCS.

Who this is for
FCA authorised firms
PRA authorised firms

Background
Setting the right MELL makes sure the FSCS has enough funding to carry out its functions. The MELL applies from 1 April 2026 until 31 March 2027. For more detail on how the MELL is calculated and the FSCS unlevied reserve, see the policy statement Link is external and the FSCS January 2026 budget update Link is external .

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