FSCS announces plan and budget for 2018/19

Regulatory Updates | 24/01/18

The Financial Services Compensation Scheme (FSCS) has published its plan and budget for 2018/19, outlining its expected management costs and initial levy forecasts. The FSCS expects to levy the industry £336m for the nine months from 1 July 2018 to 31 March 2019, up from £320m in 2017/18 (which covered 12 months). The forecast is for nine months rather than 12 in order to align the FSCS’s levy and financial years.  The FSCS says the key driver for this increase is the higher cost of enhancing its resilience as it increases the size of its revolving credit facility with a consortium of banks in order to fund the seven-day pay-out and apply the lessons learned from the failure in 2016 of the Enterprise Insurance Company.