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

Statement of Policy

First published on 27 September 2016

This statement of policy (SoP) sets out the calculation methodology that the Prudential Regulation Authority (PRA) uses, as the United Kingdom’s designated authority in respect of the Deposit Guarantee Scheme (DGS), to calculate the risk-adjustment for DGS member contributions to the Financial Services Compensation Scheme (FSCS).

This methodology will apply only to the calculation of compensation cost levies.

This SoP is intended to be read together with the rules governing the funding of the FSCS in the Depositor Protection Part of the PRA Rulebook, and the sections relating to the role of the FSCS in funding the DGS in PRA SoP, ‘Deposit Guarantee Scheme', which applies to the FSCS. Readers may also wish to refer to the European Banking Authority (EBA) guidelines on risk-based contributions, upon which the PRA's methodology is based.

Current version

Published on 30 June 2023. Effective from 1 July 2023.

Statement of policy – Calculating risk-based levies for the Financial Services Compensation Scheme deposits class – June 2023 (pdf)

- following PS7/23 – Depositor Protection

Past versions

Published on 5 March 2019. Effective from 7 March 2019.
- Statement of Policy UPDATE – March 2019 (pdf)
- following Policy Statement 6/19 Responses to Chapters 3-7 of CP24/18 ‘Occasional Consultation Paper’

Published on 7 February 2017. Effective from 7 February 2017 (superseded on 7 March 2019 by March 2019 version).
- Statement of Policy UPDATE – February 2017 (pdf)
- following Policy Statement 31/16 ‘Credit union regulatory reporting’

Published on 27 September 2016. Effective from 27 September 2016 (superseded on 7 February 2017 by February 2017 version).
- Statement of Policy (pdf)
First publication of SS.

Prudential Regulation // Consultation paper

Prudential Regulation // Letter

Prudential Regulation // Memorandum of Understanding

Prudential Regulation // PRA statement