FSCS backs Tripartite proposals for strengthening compensation framework

1st July 2008

The proposed changes to UK arrangements to deal with banks in difficulty, laid out in a consultation document published by the Tripartite authorities today, will do much to strengthen consumer protection and market confidence, the Financial Services Compensation Scheme said today (1 July 2008).

Chief Executive, Loretta Minghella said: "The FSCS has been working closely with HM Treasury, the Financial Services Authority and the Bank of England on these wide ranging proposals for banking and compensation reform. We believe they will help to ensure we are in a better position to protect depositors, by paying compensation more quickly if a bank fails."

"The issues outlined in the consultation document are complex and finding the right solutions to the outstanding questions will be vitally important. We encourage people to respond to the consultation to make sure this is achieved."

The consultation document entitled, Financial stability and depositor protection: further consultation was published by the Tripartite authorities today. Copies are available from the Treasury website.