applying the proportion calculated in (2) to the figure in (1).
The FSCS must (subject to (2)) allocate any specific costs levy amongst the sub-schemes and relevant contribution groups in proportion to the volume of relevant costs arising from, or expected to arise from, claims in respect of the different activities represented by those contribution groups.
The FSCS must calculate a participant firm's share of a specific costs levy (subject to COMP 13.4.19 R (Adjustments to calculation of levy shares) and COMP 13.6A.1 R (IFA pensions review compensation levies)) by:
identifying each of the sub-schemes and relevant contribution groups within those sub-schemes to which the participant firm belongs, using the statement of business most recently supplied under COMP 13.6.11 R;
identifying the management expenses other than base costs or establishment costs which the FSCS has incurred, or expects to incur, in the relevant financial year of the compensation scheme, allocated to the contribution groups identified in (1), but not yet levied;
calculating, in relation to each relevant contribution group, the participant firm's tariff base as a proportion of the total tariff base of all participant firms in the contribution group, using the statement of business most recently supplied under COMP 13.6.11 R;
applying the proportion calculated in (3) to the figure in (2); and
New participant firms will normally have relevant tariff bases of nil as at 31 December in the financial year preceding that in which they join, so that they will not be required to pay a share of a specific costs levy (or a compensation costs levy because of COMP 13.6.6 R). COMP 13.5.8 R means that the FSCS does not have to estimate the tariff base of a new participant firm.
Since a firm that becomes a participant firm in the course of a financial year of the compensation scheme will already be obtaining a discount in relation to the base costs levy and the establishment costs levy through the modified fee provisions of SUP 20.4.4, no rule is necessary in COMP for discounts on the base costs levy or the establishment costs levy.2