The Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) are proposing a 7% reduction in the annual levy which authorised financial services firms must pay for the industry's compensation scheme.
The management expenses levy for the Financial Services Compensation Scheme (FSCS) was £74.6m for the year 2014/2015. The regulators are proposing this charge should be reduced to £69.1m for the period 2015/2016.
On top of this is a £5.3m contingency fund which remains unchanged on 2014/2015’s annual budget.
The management expenses levy is separate from the levy which financial services firms must pay to provide for compensation to consumers in the event of wrongdoing from authorised firms within the sector.
The consultation closes on 16 February 2015. To submit a response click HERE.
The finalised rules come into force on the 1 April 2015.
