Chargeable equity and liabilities: excluded equity and liabilities: FSCS liabilities
Paragraph 37 of Schedule 19
Banks and other financial services are required to pay a levy for the purposes of the Financial Services Compensation Scheme (FSCS) which pays compensation to investors if a bank defaults. Amounts on the balance sheet representing such levy liabilities are excluded from the bank levy.
The legislation recognises the comparability of the FSCS levy with similar schemes operating outside of the UK. Therefore the exclusion applies not just to levies payable to the FSCS under s213(2)(b) of FISMA 2000 but also those which apply for similar purposes overseas to schemes which are comparable with the FSCS.
See BKLM331115 for comparable schemes.