Prudential Regulation Authority Rulebook

36.1

This Chapter applies only to the FSCS.

36.2

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

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

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

36.5

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

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

36.7

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

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.