COMP 13.8 Payment of levies

A participant firm must pay its share of any levy made by the FSCS:

1. (1)

   in one payment; or

2. (2)

   where the FSCS agrees, quarterly, at the beginning of each quarter, by direct debit agreement.

A participant firm's share of a levy to which COMP 13.8.1 R (1) applies is due on, and payable within 30 days of, the date when the invoice is issued.

If a participant firm does not pay its share of a levy as required by COMP 13.8.3 R, it must thereafter pay additional administrative fees based on the amount outstanding at a rate of 5% over the Bank of England's repo rate from time to time in force accruing on a daily basis from the date on which the payment was due.

If a participant firm does not pay its share of a levy subject to a direct debit agreement as required by COMP 13.8.1 R (2), the entire amount of the levy becomes due and payable to the FSCS, and additional administrative fees are payable at the rate set out in COMP 13.8.4 R.

If a participant firm fails to make payment under COMP 13, the FSCS may:

1. (1)

   take steps to recover any money owed; or

2. (2)

   refer the matter to the FSA so that the FSA may take whatever disciplinary action it considers necessary; or

3. (3)

   do both (1) and (2).

If a firm ceases to be a participant firm part way through a financial year of the compensation scheme:

1. (1)

   it will remain liable for any unpaid levies which the FSCS has already made on the firm; and

2. (2)

   the FSCS may make a levy upon it (which may be before or after the firm has ceased to be a participant firm, but must be before it ceases to be an authorised person) for the costs which it would have been liable to pay had the FSCS made a levy on all participant firms at the time of the levy on the firm.