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Application provision

34.1 This Chapter applies only to the FSCS.

34.1

03/07/2015

This Chapter applies only to the FSCS.

34.2

03/07/2015

The FSCS must raise available financial means by imposing a DGS compensation costs levy on DGS members at least once in each financial year for expenditure incurred or expected in the period of 12 months following 1 July in that year.

Additional Notes


[Note: Art. 10(1)(second paragraph) of the DGSD]

34.3

03/07/2015

  1. (1) If, after the available financial means of the deposit guarantee scheme have reached the target level for the first time, the available financial means have been reduced to less than two-thirds of the target level, the FSCS must impose regular DGS compensation cost levies on DGS members at a level allowing the target level to be reached again within six years.
  2. (2) The regular levies imposed under (1) shall take due account of the phase of the business cycle and the impact that procyclical contributions may have when setting annual contributions.

Additional Notes


[Note: Art. 10(2) (third and fourth paragraphs) of the DGSD]

34.4

01/10/2016

DGS compensation cost levies imposed on DGS members to raise the available financial means of the deposit guarantee scheme must be based on the amount of covered deposits (excluding temporary high balances) and the FSCS’s assessment of the degree of risk incurred by the respective DGS member.

Additional Notes


[Note: Art. 13(1) of the DGSD]

34.5

03/07/2015

The FSCS may decide that a DGS member must pay a minimum contribution under a DGS compensation costs levy, irrespective of the amount of its covered deposits.

Additional Notes


[Note: Art. 13(1) (fifth paragraph) of the DGSD]

34.6

03/07/2015

The FSCS may only impose a DGS compensation costs levy on DGS members if the FSCS has reasonable grounds for believing that the funds available to it to meet relevant expenses are, or will be, insufficient, taking into account expenditure already incurred, actual and expected recoveries and the level of the FSCS’s expected expenditure in respect of DGS compensation costs in the 12 months immediately following the levy.

34.7

03/07/2015

The FSCS may include in a DGS compensation costs levy the costs of compensation paid by the FSCS in error, provided that the payout was not made in bad faith.