FSCS - Financial Services Compensation Scheme

harveydavies

Can anyone tell me or point me in the right direction please?

The Bank Of England indicated in 2014 that as of the 1st July 2015 the compensation scheme would rise from £85,000 to £1 million. Is this going to be implemented or were these rule changes rejected?

dunstonh

It was a suggestion and only for short term cash holdings (such as inheritance whilst deciding what to do with it). I believe 6 months was the timscale discussed.

Reaper

It is only for temporary savings meaning for no longer than 6 months, for example money from a house sale waiting for your next house purchase to go through.

http://www.choose.net/money/guide/news/fscs-protection-increased-1million.html

harveydavies

Do you know if these suggestions are going to be implemented though - I am only looking at short term and cannot find anywhere that indicates if these new rules will be implemented as of 1st July 2015.

TakeCareOfThePennies_2

harveydavies wrote: »

Do you know if these suggestions are going to be implemented though - I am only looking at short term and cannot find anywhere that indicates if these new rules will be implemented as of 1st July 2015.

Actually, I think you'll find its not the Bank of England, but the Brussel Sprouts you've got to thank for this one !

What the Bank of England is talking about is the UK's implementation of the Deposit Guarantee Scheme Directive published by our Brussels masters.

The Directive talks about “temporary high balances”.

I suspect the July date you might be referring to is the date when DGSD is enshrined in UK law, but again that would need to be checked.

I will see if I can find a link to the directive itself and its UK implementation update this post.

UPDATE:

Directive 2014/49/EU of the European Parliament and of the Council of 16 April 2014 on deposit guarantee schemes
http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32014L0049&from=EN

The bank of england consultation paper on 2014/49/EU
http://www.bankofengland.co.uk/pra/Pages/publications/cp/2014/cp2014.aspx

The Deposit Guarantee Scheme Regulations 2015
http://www.legislation.gov.uk/uksi/2015/486/pdfs/uksi_20150486_en.pdf

The last item says "Coming into force in accordance with regulation 1(2) and (3)".

You can find 1(2) and (3) in the same document. Ultimately that should answer your question.

Bank of England Statement of Policy (April 2015)

http://www.bankofengland.co.uk/pra/Documents/publications/sop/2015/fscsdgs.pdf

(see part 5)