FSA is consulting on the FSCS management expenses levy limit (MELL). Given that from 1 April 2013 the interest cost on FSCS borrowings to fund compensation will be regarded as compensation costs, rather than management expenses, the proposed MELL has been reduced from £1 billion to £94.4 million. MELL sets a limit, which is not necessarily the amount FSCS will actually levy. FSA will be consulting separately in March on FSA and the Financial Ombudsman Service fees. (Source: CP13/4 – FSCS – Management Expenses Levy Limit 2013/2014)