Prudential Regulation Authority Rulebook

41.1

A DGS member’s share of a DGS management expenses levy consists of one or more of: (1) a share of a DGS base costs levy and (2) a share of a DGS specific costs levy.

41.2

The FSCS must ensure that each DGS member’s share of a DGS management expenses levy separately identifies the firm’s share of the DGS base costs levy and DGS specific costs levy.

41.3

The FSCS must allocate any DGS specific costs levy to class A up to the levy limit for class A under 33.3.

41.4

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

1. (1) identifying DGS specific costs which the FSCS has incurred, or expects to incur, in the relevant financial year of the deposit guarantee scheme allocated to class A, but not yet levied;
2. (2) calculating the DGS member’s class A tariff base as a proportion of the total class A tariff base, using the statement of business most recently supplied; and
3. (3) applying the proportion calculated in (2) to the figure in (1).

41.5

The FSCS must not require a firm (A) which becomes a DGS member part way through a financial year of the deposit guarantee scheme to pay a share of a DGS specific costs levy until the financial year of the FSCS following the FSCS financial year in which A became a DGS member, at which time A’s share of a DGS specific costs levy must be calculated under 41.6.

41.6

1. (1) Unless otherwise provided in (2), A’s class A tariff base is calculated, where necessary, using a projected valuation of the business to which the tariff relates
2. (2)
1. (a) If A’s class A tariff base is calculated using data from a period that begins on or after it became a DGS member, that data must be used to calculate A’s class A tariff base
2. (b) If A’s class A tariff base satisfies the following conditions, it must be calculated under (c)
1. (i) A became a DGS member between 1 April and 31 December inclusive; and
2. (ii) A’s class A tariff base, but for this rule, is calculated by reference to the financial year ended in the calendar year ending 31 December or the twelve months ending 31 December before the FSCS financial year.
3. (c) If A satisfies the conditions in (b) it must calculate its class A tariff base as follows:
1. (i) it must use actual data in relation to the business to which the tariff relates rather than projected valuations;
2. (ii) the tariff is calculated by reference to the period beginning on the date it became a DGS member and ending on the 31 December before the start of the FSCS financial year; and
3. (iii) the figures are annualised by increasing them by the same proportion as the period of 12 months bears to the period starting from when the DGS member became a DGS member to the 31 December, as the case may be.
4. (d) Where A is required to use the method in (c) it must notify the FSCS of its intention to do so by the date specified in 44.2.
5. (e) Where A is required to use actual data under this rule, Chapter 43 is disapplied, to the extent it is incompatible, in relation to the calculation of that DGS member’s valuation date in its second financial year.