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Home > Prudential Regulation Authority > Implementing risk-based levies for the Financial Services Compensation Scheme deposits class – PS25/16
 

Implementing risk-based levies for the Financial Services Compensation Scheme deposits class – PS25/16

27 September 2016

Update 31 May 2017: As set out in PS25/16, FSCS compensation costs levies will be adjusted for the degree of risk incurred by deposit takers for the first time this year. FSCS compensation costs levies are included in the Financial Conduct Authority (FCA) Regulatory Fees and Levies invoice that firms will receive in July 2017. For more information see the PRA’s FSCS updates page.

Overview

This Prudential Regulation Authority (PRA) policy statement (PS) provides feedback on responses to Consultation Paper (CP) 7/16 ‘Implementing risk-based levies for the Financial Services Compensation Scheme deposits class’.

This PS is relevant to UK banks, building societies and credit unions as well as to overseas firms with PRA deposit-taking permission; and the Financial Services Compensation Scheme (FSCS), as the UK’s administrator of its Deposit Guarantee Scheme (DGS).

In response to consultation feedback, the PRA has removed the proposal that legacy cost levies are risk-based. The PRA has also made technical amendments to the calculation methodology for credit unions to align with the requirements in the Credit Union Part of the PRA Rulebook.

Appendix 1 of this PS contains the amendments to the Depositor Protection Part of the PRA Rulebook. Appendix 2 contains the final statement of policy specifying the calculation methodology for risk-based levies.

Policy statement

Implementing risk-based levies for the Financial Services Compensation Scheme deposits class – PS25/16

Appendices

PRA Rulebook: CRR Firms, Non CRR Firms, Non-Authorised Persons: Depositor Protection Instrument 2016

Statement of Policy - Calculating risk-based levies for the Financial Services Compensation Scheme deposits class 

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