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  • The levy scaling factor (LSF) has been reduced to 0.48

  • The scheme based levy remains at 0.000021 x unstressed liabilities

  • The risk based levy cap has been reduced to 0.5% (0.005000) x unstressed liabilities

  • The insolvency risk levy rates for 2018/19 are as follows

What’s changed?

How insolvency risk scoring has changed

  • As well as Experian scores, we’re now using public credit ratings and the Standard and Poor’s credit model for certain regulated financial services businesses

  • There are five new scorecards in the Experian model

  • Only six months’ insolvency risk scores have been used in 2018/19 but we’re going to use twelve monthly insolvency risk scores for the remainder of the current levy triennium (2019/20 and 2020/21)

How the requirements for contingent asset recognition have changed

For 2018/19, if you have a Type A contingent asset – a guarantee – that reduced your levy by £100,000 or more, you had to send us a professional valuation report or guarantor strength report that supported the ‘realisable recovery’ amount certified by 29 March 2018.

How accuracy of reporting has been improved

  • Some smaller schemes no longer have to involve actuaries in certifying deficit reduction contributions below £1 million 

  • It’s easier to provide information on certain types of block transfers - exempt transfers

  • We’ve revised some of the asset and liability stress factors

  • In some cases, we’ve relaxed the evidence of title requirements for ABC arrangements with property assets