FSA Registration and FSCS Protection

GBCbuster

Why do most "conglomerate" financial institutions - those which own a number of individual banks - choose to operate under a single communal FSA registration which must surely result in less business for them when prospective customers are aware that their FSCS protection would be limited to a single amount of £50,000 and it would be a senseless risk to open accounts with more than one of their offspring banks?

Oblivion

I think in the past it has been seen as a potential money-saver by the conglomerates to have just one licence, and they've got away with it because there has never been any real focus by consumers regarding what they are protected for ... until the recent chaos started that is.

I suspect we may soon see these conglomerates extending licences to their subsidiaries to ensure an inflow of funds, and they may even be obliged to do so after the Government and FSA have had further time to consider what's needed to tighten up on regulatory controls.

Dave.