FSA publishes new rules for faster payout

24th July 2009

 

The Financial Services Authority today published its Policy Statement on banking and compensation reform. The FSCS welcomes the changes and believes they will contribute to improving consumer confidence.

Among the changes contained in Policy Statement 09/11 - Banking and Compensation Reform are:

  • a requirement on deposit takers to maintain a "single customer view" to give the FSCS the information it needs to achieve a faster payout in the event of a failure;
  • simplifying the FSCS eligibility requirements for deposit claims;
  • moving to gross payout to depositors; and
  • new disclosure requirements on deposit takers to provide information about the FSCS to their customers.

FSCS Chief Executive, Loretta Minghella, said: "We welcome the FSA Policy Statement, which marks the next phase of improvements to the FSCS that will benefit consumers. Both we and the industry have much to do to implement FSA's new rules. Once we have done so, it will be much easier for the FSCS to respond quickly should a deposit taker fail. That will be good news for consumers and will help to promote consumer confidence."

Jargon Buster

  • FSA

    Financial Services Authority, was previously the UK's regulator for the finance industry. It was replaced by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) on 1 April 2013.