Media Centre
Press release
BSA WELCOMES INCREASE IN FSCS LIMIT TO £50,000
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Contact: Rachel Le Brocq Date: 3 Oct 2008 |
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Commenting on the FSA’s announcement, Adrian Coles, Director-General of the BSA said:
“We welcome today’s announcement that the level of compensation for savers will increase from £35,000 to £50,000 on Tuesday. This will mean that at least 97% of building society savers are fully covered by the Financial Services Compensation Scheme.
“We are pleased also that the Tripartite Authorities have again repeated their commitment to “do whatever is necessary to maintain financial stability and protect depositors”.
“It is good that this new limit is to be implemented so quickly. The financial services market is changing rapidly and there is no room for uncertainty or lack of clarity for consumers.
“It is sensible to have a longer term debate about whether the limit should be higher still, the speed with which compensation payments are made and the legal basis of the coverage. We also think that there should be a debate about whether building societies’ and banks’ payments into the compensation scheme should somehow be risk-related.”
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CONTACT: Rachel Le Brocq
DIRECT LINE: 020 7520 5905
NIGHT/WEEKEND: 07773 489644
EMAIL: rachel.lebrocq@bsa.org.uk
The Building Societies Association (BSA) represents all 59 building societies in the United Kingdom. Building societies have total assets of over £360 billion and, together with their subsidiaries, hold residential mortgages of £250 billion, more than 20% of the total outstanding in the UK. Societies hold about £230 billion of retail deposits, accounting for more than 20% of all such deposits in the UK. Building societies also account for about 38% of all cash ISA balances. Building societies employ over 51,500 full and part-time staff and operate through more than 2,000 branches.
Photographs of Adrian Coles are available from the BSA press office, or from the Association’s website at www.bsa.org.uk or Headlinemoney www.headlinemoney.co.uk
