No Guarantee up to £50,000 anymore -True?

lotto-dreamer

Is this true? :eek:

I can't find anything more about this - but I've just seen a comment on Have Your Say on BBC website:

"Depositors' money is no longer guaranteed up to £50,000.

Take a look at the Government's new policy statement issued last month to the Financial Ombudsman (in connection with Equitable Life compensation). No guarantees now apply where the fault lies with the management, the market, or due to regulatory failure - like, in every case."

Link to where comment is posted
http://newsforums.bbc.co.uk/nol/thread.jspa?sortBy=2&forumID=6116&edition=1&ttl=20090228074324&#paginator

BUT,Is there a thread or article relating to this anywhere on MSE or elsewhere?

ahai1

This is utter rubbish. The Equaitable Life would not have qualified in the first place as it is not like a bank, building society or a credit union.

lotto-dreamer

ahai1 wrote: »

This is utter rubbish. The Equaitable Life would not have qualified in the first place as it is not like a bank, building society or a credit union.

Hopefully, this is rubbish. I found it worrying though.

ahai1

Of course as it has not even been on the news.

JP45

ahai1 wrote: »

This is utter rubbish. The Equaitable Life would not have qualified in the first place as it is not like a bank, building society or a credit union.

It is, as ahai1 says, utter rubbish. The £50k compensation for UK bank and building society savings is still in force. It was never intended to cover Equitable Life.

ahai1

One of the things is that people are needlessly panicing. Just because it says something on a forum should not be taken as gospel. Also the majority of people are alright if they have savings less than £50,000. Also if the the worst were to happen the government will most likely pay out on any UK mainland account (England, Wales, Scotland and Nothern Ireland) over the £50,000 to stop panic.

zaksmum

God. As if we didn't have enough to worry about!

Robert_Sterling_3

...............................................UNTRUE

dunstonh

Its complete rubbish. Eq Life would not have been covered under the FSCS deposit protection scheme. It is covered under the FSCS insurance scheme. However, the issues with Eq Life are not linked to the FSCS but to the liability of the Govt to culpable.

Had Eq Life actually failed totally, then the FSCS would have kicked in.

ahai1

What liabilities does FSCS have for the insurance scheme?

dunstonh

insurance (which will be annuities, endowments, investment bonds and pensions (not SIPPs unless they are using insured funds)) comes under the insurance FSCS protection which is 100% of first £2000 and 90% of the rest with no upper limit.