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.