FEES 6.4 Management expenses

A participant firm must pay to the FSCS a share of each management expenses levy.

The total of all management expenses levies (taken together with the management expenses levies under the PRA Rulebook) attributable to a particular period of the compensation scheme may not exceed the limit applicable to that period set out in FEES 6 Annex 1 R.

A participant firm's share of a management expenses levy consists of one or more of: (1) a share of a base costs levy and (2) a share of a specific costs levy.

The FSCS must ensure that each participant firm's share of a management expenses levy separately identifies the firm's share of the base costs levy and specific costs levy.

Subject to FEES 6.3.22 R, the FSCS must calculate a participant firm's share of a base costs levy by:

1. (1)

   for recognised investment exchanges, providing for £1,000 per RIE for each financial year of the compensation scheme (other than in the financial year in which the recognised investment exchange becomes a participant firm, when its share is nil);

2. (2)

   for other participant firms:

   1. (a)

      identifying the base costs which the FSCS has incurred, or expects to incur, in the relevant financial year of the compensation scheme, but has not yet levied and allocating 50% of those base costs (less any contribution to be made by recognised investment exchanges under (1)) as the sum to be levied on participants in all the activity groups listed in FEES 4 Annex 1AR;

   2. (b)

      calculating the amount of the participant firm’s regulatory costs as a proportion of the total regulatory costs relating to all participant firms (other than recognised investment exchanges) for the relevant financial year; and

   3. (c)

      applying the proportion calculated in (b) to the sum in (a).

The FSCS must allocate, and calculate a participant firm’s share of, a specific costs levy in the same way as for a compensation costs levy (see FEES 6.5).

1. (1)

   [deleted]

2. (2)

   [deleted]