Status: You are viewing the version of the handbook as on 2019-04-01.

FEES TP 20 1Transitional provisions relating to changes to the FSCS levy arrangements taking effect in 2019/20

(1)

(2)

Material to which the transitional provision applies

(3)

(4)

Transitional provision

(5) Transitional provision: dates in force

(6) Handbook provisions coming into force

20.1

The changes made to FEES 6 by the Financial Services Compensation Scheme (Funding Review) Instrument 2018

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The changes in (2) apply to any levy made after 31 March 2019. This is so even if:

(1) the claim against the relevant person or successor in default arose or relates to circumstances arising before that date; or

(2) the relevant person or successor was in default before that date.

From 1 April 2019 indefinitely

1 April 2019

20.2

FEES 6.3.19R

FEES 6.3.20R

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Allocation of recoveries

Any recoveries made by the FSCS after 31 March 2019 in relation to protected claims , the costs of which were allocated prior to 1 April 2019 to a class in place at the time, including, if relevant, through the retail pool in place at the time, must be credited to the corresponding class in accordance with the following table:

From 1 April 2019 indefinitely

1 April 2019

Class in place before 1 April 2019

Corresponding class

B2 (General Insurance Distribution)

H (Insurers – general contribution)

Class 1 (General Insurance Distribution Claims)

C2 (Life distribution and pensions intermediation)

D2 (Investment intermediation)

G (Insurers – life contribution)

Class 2 (Investment Intermediation Claims)

D1 (Investment provision)

Class 3 (Investment Provision Claims)

E2 (Home finance intermediation)

I (Home finance provision)

Class 4 (Home Finance Intermediation Claims)

K (Debt management claims)

Class 5 (Debt Management Claims)

F (deposit acceptor’s contribution)

Class 6 (Deposit acceptors’ contribution)

20.3

FEES 6.3.14R

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Allocation of surplus/deficit

The FSCS must allocate any surplus or deficit in a class in place on 31 March 2019 to the corresponding class in FEES TP 20.2R.

From 1 April 2019 indefinitely

1 April 2019

20.4

FEES 6.3.17R

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Management of funds

In relation to classes C2 and D2 as existing before 1 April 2019, where:

(1) the FSCS has used money, in accordance with FEES 6.3.17R, held to the credit of one of the above classes (the creditor class) to pay compensation costs or specific costs attributable or allocated by way of levy to the other of those classes (the debtor class); and

(2) on 31 March 2019 the creditor class is not yet reimbursed by the debtor class;

the FSCS must ensure that the debtor class pays interest to the creditor class under FEES 6.3.17R(2)(b) for the period up to 1 April 2019 and no later.

From 1 April 2019 indefinitely

1 April 2019