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Status: You are viewing the version of the handbook as on 2019-09-14.

FEES 6.5A 1The retail pool

Allocation of compensation costs levies and specific costs levies through the retail pool

FEES 6.5A.1RRP

The FSCS must allocate a compensation costs levy or specific costs levy, which has been allocated to the retail pool (under FEES 6.5.2-AR(2) or FEES 6.4.6AR32):

  1. (1)

    to classes whose levy limit3 has not been reached as at the date of the levy;

  2. (2)

    in proportion to the relative sizes of the levy limits3 of the classes in (1) and up to those levy limits32; and

  3. (3)

    in accordance with the table in FEES 6 Annex 2R; and3

    2
  4. (4)

    a class’s share of a levy allocated to the retail pool must be distributed amongst any categories within that class in proportion to the unused levy limits for those categories and up to those levy limits: see FEES 6 Annex 2R. 3

FEES 6.5A.2RRP

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FEES 6.5A.3GRP

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How levy limits affect allocation to classes in the retail pool

FEES 6.5A.4RRP

The calculation of the relative sizes of the levy limit3 (for the purpose of FEES 6.5A.1R(2)3) is based on the original levy limits3 for the classes (as set out in FEES 6 Annex 2R3) and not the remaining capacity in each class.

FEES 6.5A.5RRP

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.

FEES 6.5A.6RRP

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FEES 6.5A.7RRP

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