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

Statement of Policy

Update 5 March 2019

This Statement of Policy (SoP) (available under ‘current version’ below) was updated following Policy Statement 6/19 Responses to Chapters 3-7 of CP24/18 ‘Occasional Consultation Paper’.

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: 5 March 2019

Past version

Published: 7 February 2017

This Statement of Policy was updated following publication of Policy Statement 31/16 ‘Credit union regulatory reporting’

No longer effective (superseded by March 2019 version)


Published: 27 September 2016

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