RCI Bank to get FSCS protection.

edited 20 December 2018 at 1:29PM in Budgeting & Bank Accounts
5 replies 1.2K views
soulsaversoulsaver Forumite
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edited 20 December 2018 at 1:29PM in Budgeting & Bank Accounts
Good news?
In preparation for UK's planned exit from EU..

Dear Mr Soul Saver

"We are proposing to transfer the business of RCI Bank UK branch to a new UK limited liability company which will be called RCI Bank UK Limited and which will be a wholly owned bank subsidiary of RCI Banque SA, our parent company.

Please be assured that this process will not affect your day to day banking experience with us. Your money will remain protected.

Your deposits are currently protected by France’s Fonds de Garantie des Depôts et de Resolution (FGDR).

Customers who have eligible deposits with the UK Branch are protected up to a total of €100,000 by the FGDR and are not protected by the UK Financial Services Compensation Scheme (the "FSCS").

Any deposits you hold above the €100,000 limit are not covered. The protection covers each customer, not each account.

For joint accounts, each customer is protected up to €100,000, so up to €200,000 between them.

The €100,000 protection offered by the FGDR equates to approximately £89,000 but this is subject to exchange rate fluctuations.

Following the implementation of the Scheme, all customers will be covered by the FSCS.

The FSCS provides most customers, including private individuals and small businesses (which includes companies, as long as they meet the "small company" criteria set out in the relevant Companies Act) with assurance that up to £85,000 of money deposited with an authorised deposit taker will be protected if the bank becomes unable to repay money deposited with it."

Replies

  • Edi81Edi81 Forumite
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    The need
    To set up a company in the UK rather than a branch post Brexit.

    UK banks will be doing the same with their European operations.

    No change overall as cash will still be protected but now via the FSCS rather than the french equivalent.
  • soulsaversoulsaver Forumite
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    Edi81 wrote: »
    The need
    To set up a company in the UK rather than a branch post Brexit.

    UK banks will be doing the same with their European operations.

    No change overall as cash will still be protected but now via the FSCS rather than the french equivalent.

    Well you could be forgiven for thinking that's 'no change', but lots of people on here didn't/don't use RCI (even when it's been near the top easy access rate) because it's not covered by FSCS... even though covered by the French equiv.
  • masonicmasonic Forumite
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    soulsaver wrote: »
    Well you could be forgiven for thinking that's 'no change', but lots of people on here didn't/don't use RCI (even when it's been near the top easy access rate) because it's not covered by FSCS... even though covered by the French equiv.
    Indeed. A compensation scheme that is tried and tested and has never failed to pay out to UK residents is certainly preferable to the passport scheme, which, at the last test (Icelandic banks), only paid out claims from the locals.
  • UxbUxb
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    Edi81 wrote: »
    The need
    To set up a company in the UK rather than a branch post Brexit.

    UK banks will be doing the same with their European operations.

    No change overall as cash will still be protected but now via the FSCS rather than the french equivalent.

    As I've said before on here IF such an eventuality ever took place good luck in getting money out of the French (or any foreign) government.
    They'd have no problem in compensating the locals of course...
    There would have been all sorts of delaying tactics they might have tried.
    First would be to require the form to be filled in in French. Then require some sort of ID certification to be done to accompany the form - except this could only be done by a French approved legal notary of which there were none in the UK - or only available in person in London.
    So its all good news that its now under the FSCS
  • SystemSystem Forumite
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    Uxb wrote: »
    As I've said before on here IF such an eventuality ever took place good luck in getting money out of the French (or any foreign) government.
    They'd have no problem in compensating the locals of course...
    There would have been all sorts of delaying tactics they might have tried.
    First would be to require the form to be filled in in French. Then require some sort of ID certification to be done to accompany the form - except this could only be done by a French approved legal notary of which there were none in the UK - or only available in person in London.
    So its all good news that its now under the FSCS

    You'd just need jellied eels and Morris dancing for your Petite Angleterre claim :D
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