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COMP 13.8 Payment of levies

COMP 13.8.1R

A participant firm must pay its share of any levy made by the FSCS:

  1. (1)

    in one payment; or

  2. (2)

    where the FSCS agrees, quarterly, at the beginning of each quarter, by direct debit agreement.

COMP 13.8.2G

The amount paid under a direct debit arrangement will be adjusted on a continuous basis to take account of interim levies and other adjustments made during the course of the financial year.

COMP 13.8.3R

A participant firm's share of a levy to which COMP 13.8.1 R (1) applies is due on, and payable within 30 days of, the date when the invoice is issued.

COMP 13.8.4R

If a participant firm does not pay its share of a levy as required by COMP 13.8.3 R, it must thereafter pay additional administrative fees of £250 plus interest 1on any unpaid part of the levy 1at a rate of 5% over the Bank of England's repo rate,1 from time to time in force,1 accruing on a daily basis from the date on which the payment was due.

COMP 13.8.5R

If a participant firm does not pay its share of a levy subject to a direct debit agreement as required by COMP 13.8.1 R (2), the entire amount of the levy becomes due and payable to the FSCS, and additional administrative fees are payable at the rate set out in COMP 13.8.4 R.

COMP 13.8.6R

If a participant firm fails to make payment under COMP 13, the FSCS may:

  1. (1)

    take steps to recover any money owed; or

  2. (2)

    refer the matter to the FSA so that the FSA may take whatever disciplinary action it considers necessary; or

  3. (3)

    do both (1) and (2).

COMP 13.8.7R

If a firm ceases to be a participant firm part way through a financial year of the compensation scheme:

  1. (1)

    it will remain liable for any unpaid levies which the FSCS has already made on the firm; and

  2. (2)

    the FSCS may make a levy upon it (which may be before or after the firm has ceased to be a participant firm, but must be before it ceases to be an authorised person) for the costs which it would have been liable to pay had the FSCS made a levy on all participant firms at the time of the levy on the firm.