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FSCS management expenses levy set at £74m for 2015/16

The FCA has proposed a 7 per cent reduction in the Financial Services Compensation Scheme management expenses levy to £74.4m.

In a consultation paper published today, the regulator proposes a total FSCS management expenses levy of £74.4m for 2015/16, down from £80m in 2014/15.

This is made up of a minimum levy of £69.1m and a contingency reserve of £5.3m.

The management expenses levy limit is the maximum amount the FSCS can levy in a year for management expenses. Management expenses are separate from compensation costs and are not included in the sub-class cap calculations.

The MELL includes a proposed budget of £10.8m for major recoveries expenses, down 29 per cent from a recoveries budget of £15.1m for the previous year.

The FSCS refused to say how much of the £10.8m relates to Keydata recovery costs.

Of the 2014/15 budget, £7.2m was for Keydata recovery costs. This took the total legal costs for the FSCS’s legal battle to recover compensation from advisers who recommended clients invest in Keydata to £30m.

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  1. So £74.4m is what’s needed just to keep the show on the road, is it, apart from the actual compensatin levies? Presumably, an itemised breakdown of this figure is available from somewhere or other?

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