MSE News: Chancellor called to prevent 'absurd' savings protection cut

alanq

le_loup wrote: »

We used to have protection for £30K until that dreadful EU made us put it up to 100K Euro.

Before Northern Rock crashed compensation was 100% of the first £2,000 then 90% of the next £33,000. £31,700 max.

This was later raised to 100% of £50,000 before being raised again to 100% of £85,000 to match EU €100,000 requirement.

hra_2

Here is the actual legislation hopefully to clarify (the latest amendment) with the definition of "affected person" in 57.15 with no mention of a 2014 cut-off:

http://www.bankofengland.co.uk/pra/Documents/publications/ps/2015/ps1815instr1562.pdf

It sounded from the post-consultation document (2.12) that the legislation (in their view) prevented them from "grandfathering" all the pre-existing deposits as opposed to some of them. That would have left them with 3 regimes: pre Jul 2014, Jul 2014-Jul 2015 (with the overhead of withdrawals) and post Jul 2015. And of course the limit could change again.

polymaff

hra wrote: »

It sounded from the post-consultation document (2.12) that the legislation (in their view) prevented them from "grandfathering" all the pre-existing deposits as opposed to some of them. That would have left them with 3 regimes: pre Jul 2014, Jul 2014-Jul 2015 (with the overhead of withdrawals) and post Jul 2015. And of course the limit could change again.

The EU legislation leaves the treatment of pre-Jul 2014 up to individual member states. The BoE / PRA document I quoted sits neatly on the fence. I've asked BoE / PRA to come off the fence.

Not holding my breath, though...