Prudential Regulation Authority Rulebook

1.1

Unless otherwise stated, this Part applies to:

1. (1) the FSCS;
2. (2) a firm;
3. (3) a dormant account fund operator; and
4. (4) the Society.

1.2

In this Part, the following definitions shall apply:

MERS levy

means a levy imposed by the FSCS on a firm, a dormant account fund operator or, where applicable, the Society, to meet relevant expenses incurred by the FSCS in connection with acting on behalf of the manager of the relevant scheme in accordance with Part 15A of FSMA.

manager of the relevant scheme

has the meaning given in section 224B(3) of FSMA.

relevant expenses

means management expenses as defined in section 224F(7) of FSMA.

relevant scheme

means a scheme or arrangement (other than the Financial Services Compensation Scheme) for the payment of compensation (in certain cases) to customers (including customers outside the United Kingdom) in respect of deposits or under contracts of insurance or in respect of similar financial services.

2.1

This Chapter applies only to the FSCS.

2.2

The FSCS may at any time impose a MERS levy on a firm, a dormant account fund operator or, where applicable, the Society provided that the FSCS has reasonable grounds for believing that the funds available to it to meet relevant expenses are, or will be insufficient, taking into account relevant expenses already incurred or expected to be incurred in the 12 months immediately following the date of the levy.

2.3

The FSCS can impose a MERS levy only if the FSCS has tried its best and has failed to obtain reimbursement of those expenses from the manager of the relevant scheme.

2.4

The FSCS must calculate a share of a MERS levy for a firm, a dormant account fund operator or, where applicable, the Society, on a reasonable basis.

3.1

A firm or a dormant account fund operator (and, where applicable, the Society) must pay to the FSCS its share of each MERS levy.

4.1

A firm or a dormant account provider (and, where applicable, the Society) must pay its share of a MERS levy in one payment.

4.2

A share of a MERS levy is due on, and payable within, 30 days of the date when the invoice is issued.

4.3

A firm or a dormant account fund operator (and, where applicable, the Society) must pay its share of a MERS levy by either direct debit, credit transfer (e.g. BACS or CHAPS), cheque, Maestro, Visa Debit or by credit card (Visa/Mastercard/American Express only).

4.4

The FSCS may reduce, remit or refund any overpaid amounts paid in respect of a MERS levy in respect of a particular period, due to a mistake of law or fact by a firm, a dormant account fund operator or, where applicable, the Society, provided that the claim is made by the firm, dormant account fund operator or, where applicable, the Society not more than two years after the beginning of the period to which the overpayment relates.

4.5

If a firm or a dormant account fund operator (and, where applicable, the Society), does not pay the total amount of its share of a MERS levy, before the end of the date on which it is due, it must pay an additional amount as follows:

1. (1) if the MERS levy was not paid in full before the end of the due date, an administrative fee of £250; and
2. (2) interest on any unpaid part of the MERS levy or administrative fee at the rate of 5% per annum above the Official Bank Rate from time to time in force, accruing on a daily basis from the date on which the amount concerned became due.