The FCA has published a policy statement on the Financial Services Compensation Scheme (FSCS) Management Expenses Levy Limit (MELL) for 2016/17. In the policy statement, the FCA reports on the main issues arising from its consultation paper (CP16/3) and also publishes the final rules.
The FCA’s final rules on the MELL for 2016/17 will be effective from 1 April 2016. The MELL will be set at £72.7m, which includes FSCS management expenses of £67.4m and a contingency of £5.3m. The contingency will allow the FSCS to levy additional funds for management expenses to meet costs that were not expected when the annual levy was raised.
The policy statement is relevant to all authorised firms.