Prudential Regulation Authority Rulebook

1.1

This Part applies to the FSCS.

1.2

In this Part, the following definitions shall apply:

contracts of insurance

has the meaning given in Article 3(1) of the Regulated Activities Order.

CRO insurer

has the meaning given in the Policyholder Protection Part.

FCA compensation scheme rules

means the rules of the compensation scheme that are FCA rules.

management expenses levy

means a levy imposed by the FSCS to meet management expenses.

participant firm

1. (1) has the meaning given in paragraph A (2) of the PRA Handbook Glossary definition of ‘participant firm’ as at 29 February 2016 for the purposes of the PRA’s rules and has the meaning given in the FCA Handbook for the purposes of the FCA’s rules in FEES 1; and
2. (2) includes CRO insurers.

policyholder protection scheme

means the compensation scheme for claims under contracts of insurance.

PRA class

means a class to which the FSCS allocates levies in accordance with PRA rules.

regulatory costs

means the periodic fees payable to the PRA or FCA by a participant firm (and where applicable the Society ) in accordance with the PRA’s rules in Fees 3 and in accordance with FEES 4 in the FCA Handbook.

1.3

Unless otherwise defined, an italicised expression used in this Part and in the Depositor Protection Part, has the same meaning as in the Depositor Protection Part.

1.4

[Deleted.]

2.1

[Deleted]

2.1A

The amount which the FSCS may recover from the sums levied under the compensation scheme as management expenses attributable to the period 1 April 2023 to 31 March 2024 may not exceed £109,815,710.

2.2

This amount is the combined limit in respect of the deposit guarantee scheme, the policyholder protection scheme and the FCA compensation scheme rules.

3.1

The FSCS must calculate a share of a base costs levy for a firm and, where applicable, the Society by:

1. (1) identifying the base costs which the FSCS has incurred, or expects to incur, in the relevant financial year of the compensation scheme but has not yet levied and allocating 50% of those base costs as the sum to be levied on participants in PRA classes;
2. (2) calculating the amount of the regulatory costs of the firm (or, where applicable, the Society) as a proportion of the total regulatory costs of all participant firms (and, where applicable, the Society) for the relevant financial year; and
3. (3) applying the proportion calculated in (2), if any to the sum in (1).