FSCS management levy drops 7%
The Financial Services Compensation Scheme will have a 2015/16 management expenses levy limit of £74.4m.
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The levy consists £69.1m in FSCS management expenses - a reduction of 7.4% from 2014/15, and is the minimum amount that will be levied for 2015/16 to cover items such as staff and building costs, on-going operating expenses, IT, outsourcing and claims handling, legal or other professional services and strategic programmes.
There will also be a contingency reserve of £5.3m that allows the FSCS to levy additional funds, most likely at relatively short notice, without formal consultation by the FCA and PRA to meet contingencies that were not foreseen when the annual levy was raised.
The proposed contingency is unchanged from 2014/15, and "would not be levied unless required by the FSCS".
In a post published on 6 November FSCS said that since its inception in 2001 it has paid out more than £975m to 165,000 clients of a total of 2,391 failed financial advice firms.
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