FEES 6.7 Payment of levies
A participant firm must pay its share of any levy made by the FSCS:
- (1)
in one payment; or
- (2)
where the FSCS agrees, quarterly, at the beginning of each quarter, by direct debit agreement.
The amount paid under a direct debit arrangement will be adjusted on a continuous basis to take account of interim levies and other adjustments made during the course of the financial year.
A participant firm's share of a levy to which FEES 6.7.1 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 subject to a direct debit agreement as required by FEES 6.7.1 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 FEES 2.2.1 R.
A participant firm liable to pay its share of the levy under FEES 6.7.1 R must do so using one of the methods set out in FEES 4.2.4 R save that no additional amount or discount is applicable.
If a firm ceases to be a participant firm part way through a financial year of the compensation scheme:
- (1)
it will remain liable for any unpaid levies which the FSCS has already made on the firm;
1 - (2)
the FSCS may make a levy upon it (which may be before or after the firmhas 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;
1 - (3)
the FSCS may make a levy upon the firm (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 purpose of meeting its expenses in relation to compensation costs and/or management expenses incurred or 3expected to be incurred at any time in the future in respect of defaults which have already occurred;
12 - (4)
the FSCS may estimate any costs referred to in (3) by any method or approach it considers appropriate, and adjust them to reflect the time value of money based on the funding arrangements in place in relation to the default; and1
- (5)
paragraphs (3) and (4) apply notwithstanding any other provision in this chapter.1