FSCS confirms 36 month compensation cost calculation

The FSCS will calculate levies on a three-year forward looking basis and levy one third of that amount each year from 2014/15. The industry resonse to the proposal was postive, it said, with firms welcoming the aim of increased certainty and less volatility that the new system tries to achieve. The scheme also confirmed that management costs are not included in the calculation of compensation costs, instead they will be continue to be "collected to meet costs incurred or expected to be incurred on an annual basis". However, the FSCS did not bow to calls for a fixed definition of wh...