The FCA and PRA have published a consultation paper (CP16/3) on the management expenses levy limit (MELL) for the Financial Services Compensation Scheme (FSCS) for 2016/17.
The MELL ensures that FSCS has suitable funding to ensure that it is capable of exercising the functions conferred on it by Part 15 of the Financial Services and Markets Act 2000 (FSMA). The MELL is consulted on annually. Chapter 2 sets out the proposed MELL for 2016/17.
Chapter 3 contains the PRA and FCA’s analysis of the costs and benefits of the proposed rules as required under FSMA, and a statement regarding the PRA’s and the FCA’s respective competition objectives.
The consultation is relevant to all financial services firms. Feedback is requested by 15 February 2016. Following the consultation, the PRA and FCA will consider any feedback and issue two respective policy statements or an equivalent Handbook Notice on the final MELL so that the amended PRA and FCA rules can be in place for the start of the FSCS’s financial year on 1 April 2016