Prudential Regulation Authority Rulebook

21.1

This Chapter applies only to the FSCS.

21.2

A DAS member’s share of a DAS management expenses levy consists of:

1. (1) one or more of a share of a DAS base costs levy and a share of a DAS specific costs levy if the DAS member is a dormant account fund operator;
2. (2) a share of a DAS specific costs levy if the DAS member is not a dormant account fund operator.

21.3

The FSCS must ensure that each DAS member’s share of a DAS management expenses levy separately identifies the firm’s share of the DAS base costs levy and DAS specific costs levy as applicable.

21.4

The FSCS must allocate any DAS specific costs levy to class J up to the levy limit for class J under 16.4.

21.5

The FSCS must calculate a DAS member’s share of a DAS specific costs levy by:

1. (1) identifying the DAS specific costs which the FSCS has incurred, or expects to incur, in the relevant financial year of the compensation schemes allocated to class J, but not yet levied;
2. (2) calculating the DAS member’s class J tariff base as a proportion of the total class J tariff base, using the tariff statement most recently supplied; and
3. (3) applying the proportion calculated in (2) to the figure in (1).

21.6

The FSCS must not require a firm (A) which becomes a DAS member part way through a financial year of the dormant account scheme to pay a share of a DAS specific costs levy until the financial year of the FSCS following the FSCS financial year in which A became a DAS member, at which time A’s share of a DAS specific costs levy must be calculated under 21.7.

21.7

1. (1) Unless otherwise provided in (2) A’s class J tariff base is calculated, where necessary, using the projected valuation of the business to which the tariff relates.
2. (2) (a) If A’s class J tariff base is calculated using data from a period that begins on or after it became a DAS member, that data must be used to calculate A’s class J tariff base.
1. (b) If a A‘s class J tariff base satisfies the following conditions, it must be calculated under (c):
1. (i) A became a DAS member between 1 April and 31 December inclusive; and
2. (ii) A’s class J tariff base, but for this rule, is calculated by reference to the financial year ended in the calendar year ending 31 December or the twelve months ending 31 December before the FSCS financial year.
2. (c) If A satisfies the conditions in (b) it must calculate its class J tariff base as follows:
1. (i) it must use actual data in relation to the business to which the tariff relates rather than projected valuations;
2. (ii) the tariff is calculated by reference to the period beginning on the date it became a DAS member and ending on the 31 December before the start of the FSCS financial year; and
3. (iii) the figures are annualised by increasing them by the same proportion as the period of 12 months bears to the period starting from when A became a DAS member to the 31 December, as the case may be.
3. (d) Where A is required to use the method in (c) it must notify the FSCS of its intention to do so by the date specified in 23.2.
4. (e) Where A is required to use actual data under this rule, 23.2 is disapplied, to the extent it is incompatible, in relation to the calculation of A’s valuation date in its second financial year.