Based upon information currently available to it and by reference to current interest rates which are subject to change, Nationwide anticipates total levies to the FSCS of approximately £250m, including £13m in aggregate relating to the former Derbyshire and the former Cheshire building societies, which are now a part of Nationwide.
In a recent House debate on building societies’ levies, it was reckoned that mutuals had already paid out £109m in levies; Nationwide’s prediction means that the sector is bourne with an overall levy of over £350m.
The mutual says: “We regard this cost which is ultimately borne by our members as an unfortunate consequence of the FSCS. The basis of allocation of the levies has a disproportionate and inequitable impact on low risk, predominantly retail funded institutions generally, and building societies in particular.
“We have lobbied the tripartite authorities to amend the scheme to reflect a more appropriate basis of allocation.”