On 12 January 2022, the PRA and FCA jointly issued a Consultation Paper setting out proposals for the Management Expenses Levy Limit (MELL) for the Financial Services Compensation Scheme (FSCS) for 2022/23. The Consultation Paper is supported by the FSCS’ publication of its Budget Update for 2022/23. The proposed MELL is £110.5 million for 2022/23, consisting of a management expenses budget of £95.5 million and an unlevied contingency reserve of £15 million. The proposed MELL would apply from 1 April 2022, the start of the FSCS’s financial year, to Friday 31 March 2023. The deadline for comments on the Consultation Paper is 14 February 2022.
