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Application provision

16.1 This Chapter applies only to the FSCS.

16.1

03/07/2015

This Chapter applies only to the FSCS.

16.2

03/07/2015

The FSCS may at any time impose a:

  1. (1) DAS compensation costs levy on a DAS member;
  2. (2) DAS specific costs levy on a DAS member; or
  3. (3) base costs levy on a dormant account fund operator
  4.       provided that 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:
    1. (a) in the case of a DAS management expenses levy, the level of the FSCS's expected expenditure in respect of those expenses in the financial year of the DAS compensation scheme in relation to which the levy is imposed;
    2. (b) in the case of a DAS compensation costs levy
      1. (i) the FSCS's expenditure in respect of DAS compensation costs expected in the 12 months following the levy; or, if greater
      2. (ii) one third of the FSCS's expenditure in respect of DAS compensation costs expected in the 36 months following the levy.

16.3

03/07/2015

The calculation of DAS levies must also take into account previous levies, where funds raised in anticipation of meeting liabilities prove either more or less than the amount actually required.

16.4

03/07/2015

The maximum aggregate amount of DAS compensation costs and DAS specific costs for which the FSCS can levy class J in any one financial year of the dormant account scheme is limited to £1,500,000,000 less whatever DGS compensation costs, legacy costs and DGS specific costs the FSCS has imposed on class A in that same financial year.