Question
I have heard that the FSCS limit per individual will rise to 100,000 euros instead of the £50,000 in the New Year. Is this correct?Answer
Based on an EU announcement yes, although the FSA has still to confirm the new limit will take effect from 31 December 2010.
On 12 July 2010 the EU Commission issued proposals intended to harmonise protection for savers across all EU states (called the 'European Deposit Guarantee Scheme'). Of these the main proposal is to protect savings (ignoring 'credits' such as loans and mortgages) of up to €100,000 per institution for both individuals and companies (but not financial companies or public authorities).
Other proposals include ensuring account holders are reimbursed within 4-6 weeks (but with a target of 1 week) and making it simpler to claim if the account is held in another country.
It looks like the €100,000 limit will be converted to pounds based on the exchange rate when the new rules are announced, with the limit being revised using the prevailing exchange rate at least once every five years. Based on a rate of £1 = €1.2 at the time of writing, the limit would be around £83,000.
It's very likely the FSA will implement these changes and introduce new rules for the Financial Services Compensation Scheme (FSCS) by 31 December 2010, but there's been no official announcements as yet.
I shudder to think how much time and taxpayer's money has been expended by bureaucrats in Brussels and elsewhere on this, but the least the end result should be a positive result for UK savers.
I'll update the site as soon as there's some concrete news from the FSA/FSCS.
I have heard that the FSCS limit per individual will rise to 100,000 euros instead of the £50,000 in the New Year. Is this correct?Answer
Based on an EU announcement yes, although the FSA has still to confirm the new limit will take effect from 31 December 2010.
On 12 July 2010 the EU Commission issued proposals intended to harmonise protection for savers across all EU states (called the 'European Deposit Guarantee Scheme'). Of these the main proposal is to protect savings (ignoring 'credits' such as loans and mortgages) of up to €100,000 per institution for both individuals and companies (but not financial companies or public authorities).
Other proposals include ensuring account holders are reimbursed within 4-6 weeks (but with a target of 1 week) and making it simpler to claim if the account is held in another country.
It looks like the €100,000 limit will be converted to pounds based on the exchange rate when the new rules are announced, with the limit being revised using the prevailing exchange rate at least once every five years. Based on a rate of £1 = €1.2 at the time of writing, the limit would be around £83,000.
It's very likely the FSA will implement these changes and introduce new rules for the Financial Services Compensation Scheme (FSCS) by 31 December 2010, but there's been no official announcements as yet.
I shudder to think how much time and taxpayer's money has been expended by bureaucrats in Brussels and elsewhere on this, but the least the end result should be a positive result for UK savers.
I'll update the site as soon as there's some concrete news from the FSA/FSCS.
Read this Q and A at http://www.candidmoney.com/questions/question281.aspx
No comments:
Post a Comment