Single Customer View for Faster Payout
The Financial Services Authority (FSA) has introduced new rules for the Financial Services Compensation Scheme (FSCS) and deposit takers (i.e. banks, building societies and credit unions), which, once implemented, will see eligible depositors (i.e. individuals and small businesses) compensated more quickly in the event that a deposit taker fails.
The FSA aims to ensure that the FSCS can pay compensation to eligible depositors of the failed deposit taker firm quickly and effectively. From 31 December 2010, the Deposit Guarantee Schemes Directive (DGSD) will require that deposit guarantee schemes (i.e. the FSCS in the UK) pay out compensation within 20 business days of the default of a deposit taker.
A key element of these reforms is the requirement on deposit takers to develop a capability to generate a 'single customer view'. The SCV should put the FSCS in the position where it has the information required in order to make a fast payout, with a payout target of seven days from default and in any event within DGSD timeframes.
The FSCS intends to work with trade bodies, FSA, deposit takers and suppliers to ensure that firms are able to provide the SCV information in a format which is readily transferable to and compatible with the FSCS systems.
Questions and Answers
The FSCS plans to produce a series of documents answering questions we have received since the FSA's announcement.
Latest News
We also intend to keep stakeholders informed of events and news that are relevant to the SCV programme.