An allocation in FEES 6.5A.1 R to an FCA provider contribution class other than the home finance providers and administrators' contribution class may not be of an amount that, if it were added to any levies2:
if the amount of that previous contribution by the class in (a) were added to a levy that corresponds to the FCA’s2 compensation costs levy or specific costs levy and2 which is being imposed on the PRA funding class2 which corresponds to the class in (a) (and any previous such levies in the same financial year2), the combined figure would be greater than any levy limit2 of the corresponding PRA funding class2;
the FSCS must, so far as reasonably possible, obtain repayment of the previous contribution by the class in (a) from the retail pool (including the FCA provider contribution classes except the class in (a)) to the extent that ensures that the combined figure in (b) would no longer be greater than any levy limit2 of the corresponding PRA funding class2, and credit the repayment to the class in (a).
The FSCS may obtain the repayment in (2) by:
commercial or other borrowing; or
utilising funds as set out in, and subject to, FEES 6.3.17 R.
When the FSCS allocates excess compensation costs levies or specific costs levies under FEES 6.5A.1 R or any levy imposed under FEES 6.5A.2 R (3)(a), a class to which part of the excess is allocated (a "receiving class") may, as a result of that allocation, itself reach its limit. In that case, the FSCS must apply FEES 6.5A.1 R or FEES 6.5A.2 R so that any resulting excess levy beyond the limit of the receiving class is allocated amongst the remaining classes whose limits have not been reached, to the exclusion of the receiving class. This process is repeated until the compensation costs levy or specific costs levy has been met in full or the limits of all classes have been exhausted.