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Home > Prudential Regulation Authority > Updates on the Financial Services Compensation Scheme
 

Updates on the Financial Services Compensation Scheme

FSCS  |  Updates  Banking  |  Insurance

Updates

May 2017

31 May: As set out in PS25/16 ‘Implementing risk-based levies for the Financial Services Compensation Scheme deposits class’, FSCS compensation costs levies will be adjusted for the degree of risk incurred by deposit takers for the first time this year. The levy will be included in the Financial Conduct Authority (FCA) Regulatory Fees and Levies invoice that firms will receive in July 2017.
 
Compensation costs levies were previously based solely on the proportion of covered deposits held by a firm. As required by the recast Deposit Guarantee Schemes Directive, these levies will now also be adjusted for the degree of risk the firm incurs. Wholesale deposits are also included in covered deposits for the first time. Legacy cost levies are not affected by the risk adjustment.
 
A firm’s risk adjustment is calculated using a number of quantitative indicators, such as capital, leverage, liquidity, and asset quality.
 
A firm’s aggregate risk weighting will be included on its invoice from the FCA.  More information on the risk adjustment can be found in the Statement of Policy ‘Calculating risk-based levies for the Financial Services Compensation Scheme deposits class’.
 
More detail on the Regulatory Fees and Levies invoice is available on the FCA website.
 
If you have further questions on receipt of your invoice, please speak to your usual PRA supervisory contact.
 

January 2017

On Monday 16 January the PRA issued two publications related to the Financial Services Compensation Scheme (FSCS):

November 2016

On 21 November 2016, the Prudential Regulation Authority (PRA) published CP41/16 ‘Deposit protection limit’ which sets out the PRA’s proposals to reset the deposit protection limit at £85,000. 

September 2016

On 27 September the PRA published Policy Statement 25/16 'Implementing risk-based levies for the Financial Services Compensation Scheme deposit class', and Statement of Policy 'Calculating risk-based levies for the Financial Services Compensation Scheme deposit class'.

March 2016

On 4 March 2016 the PRA published Consultation Paper 7/16 ‘Implementing risk-based levies for the Financial Services Compensation Scheme deposits class’ which sets out proposed changes to the Depositor Protection Part in the PRA Rulebook, and a new statement of policy in relation to the calculation of firm contributions to the Financial Services Compensation Scheme (FSCS).  See ‘CP7/16’ for further information.

Background, key changes and implementation - 2015

For background on the key changes that took place in 2015, see ‘PRA Deposit Guarantee Scheme – background, key changes and implementation 2015’.

Policy development
Date
​Title
CP open/ closed    
​Final policy published/planned
​16.01.17 Deposit protection limit - PS1/17 n/a​ ​
​16.01.17 Financial Services Compensation Scheme - Management Expenses Levy Limit 2017/18 - CP1/17 ​Open until 13.02. 17 ​March 2017
​21.11.16 ​Deposit protection limit - CP41/16 Closed 16.12.16
​31.07.15 Depositor and dormant account protection - consequential amendments - PS18/15 ​n/a
03.07.15
Closed 24.07.15
 
03.07.15
n/a
03.07.15
n/a
02.06.15
Closed 19.06.15
20.05.15
n/a
01.04.15
n/a
01.04.15
n/a
01.04.15
Closed
01.05.15
30.01.15
Closed 27.02.15
06.10.14
Closed 06.01.15
06.10.14
Closed 06.01.15

 
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