• A  A  A  A  

Bank of England considers returning the FSCS compensation limit to £85,000

by Insignis in Newsletter Archive

The Bank of England has announced that consultation over the FSCS compensation limit will take place with a view to returning to its previous limit of £85,000. The compensation limit is set across the European Union at €100,000 and was changed to £75,000 in January 2016 reflecting the prevailing exchange rate at the time. Re-calculations would ordinarily take place every 5 years but since the Brexit vote sterling has fallen 10% against the euro, prompting the Bank of England to consider the directive that allows a “reassessment where there are unforeseen events such as currency fluctuations.”

The Prudential Regulation Authority (PRA), which is part of the Bank of England, will consult on the plan until 16th December, however approval has already been given by the Treasury and the European Commission. Once agreed the change is expected to be introduced on 30th January 2017.

So, what is the FSCS scheme and why was it put in place?

Deposit guarantee schemes exist to protect depositors against authorised firms that are unable to pay or become insolvent. The European Commission requires all countries to provide a last resort protection to consumers in the event of a bank failure. Rules exist in the form of an EU directive for offering a limited level of protection, faster pay-out and improved internal financing of the schemes by each bank. This provides protection on both an individual front and a wider economic level.

Do you have more questions about the FSCS deposit guarantee and how it affects savers?

Insignis Cash Solutions specialises in active management of client deposits including helping clients gain incremental FSCS protection by opening multiple accounts across various financial institutions with a simple one-signature solution.

Leave a Reply

Your email address will not be published.

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

FONT SIZE

  • A  A  A  A  

Press Contacts

Sally Maclachlan
sally.maclachlan@insignisam.com
01223 200 674

TWITTER

Level39's Twitter avatar
Level39
@Level39CW

Why banks and FinTech startups need each other more than ever t.co/P7aYZ8UiJI via @uktnofficial

Retweeted by Insignis Cash
Insignis Cash's Twitter avatar
Insignis Cash
@InsignisCash

Great news. Stop the rot to your savings even more by making the most of your interest earning potential and compou… t.co/YnIOxxjB7D

Insignis Cash's Twitter avatar
Insignis Cash
@InsignisCash

Great ideas. Don't forget to also get the best rate for your business cash. We can help you manege this so that you… t.co/AsNAUfgFEL

Insignis Cash's Twitter avatar
Insignis Cash
@InsignisCash

Open Banking: why the High Net Worth will benefit from an Open Mind t.co/J5kbXLbJr8

Insignis Cash's Twitter avatar
Insignis Cash
@InsignisCash

Tandem gets banking licence after closing Harrods Bank acquisition t.co/yrQaxQAQTJ via @Finextra

As Featured In: