Prudential Regulation Authority Rulebook

35.1

This Chapter applies only to the FSCS.

35.2

The FSCS may only impose a DGS management expenses levy on DGS members if it 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 those expenses in the financial year of the deposit guarantee scheme in relation to which the levy is imposed.

35.3

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