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Application provision

36.1 This Chapter applies only to the FSCS.

36.1

03/07/2015

This Chapter applies only to the FSCS.

36.2

03/07/2015

The FSCS must not impose a legacy costs levy on Northern Ireland credit unions in respect of legacy costs incurred before 31 March 2012.

36.3

03/07/2015

The FSCS must apply any amount collected from a legacy costs levy to the payment of legacy costs and, as such, must not treat such funds as available financial means of the deposit guarantee scheme.

36.4

03/07/2015

The FSCS must allocate any legacy costs levy to DGS members subject to the levy limit for class A under 33.3.

36.5

03/07/2015

The FSCS must calculate each DGS member’s share of a legacy costs levy by:

  1. (1) identifying the legacy costs allocated to class A;
  2. (2) calculating the DGS member’s class A tariff base as a proportion of the total class A tariff base of all DGS members (excluding Northern Ireland credit unions), using the statement of business most recently supplied;
  3. (3) applying the proportion calculated in (2) to the figure in (1).

36.6

03/07/2015

Legacy cost levies must be based on the amount of covered deposits (excluding temporary high balances) incurred by the respective DGS member.

36.7

03/07/2015

A firm which becomes a DGS member part way through a financial year of the deposit guarantee scheme will not be liable to pay a share of a legacy costs levy made in that year.

36.8

03/07/2015

41.5 applies to the calculation of a DGS member’s legacy costs levy and its class A tariff base as it applies to the calculation of its DGS specific costs levy.