Friday 3 July 2015

UK: PRA announces deposit protection changes

Changes to the depositor and policyholder protection provided by the Financial Services Compensation Scheme (FSCS) were announced today by the Prudential Regulation Authority: see here. The changes are being made by the Deposit Guarantee Scheme (Amendment) Regulations 2015 and their effect is to maintain, for the majority of depositors currently covered by the FSCS, the existing level of deposit protection (£85,000) until the end of the year (after which the amount becomes £75,000). Other changes also come into effect today, including protection in respect of temporarily high balances (e.g., where money is received following a house sale, or funds received from an inheritance or divorce).

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