FSCS compensation limit raised wef 1/2/2017

[GarraGee]

Got this message in an email from my Bank, but nothing yet on the FSCS site.

Limit to back to £85000.

https://www.fscs.org.uk/what-we-cover/c ... it-limits/

GG

[GarraGee]

Also mentioned on Martin Lewis' site:

http://www.moneysavingexpert.com/savings/safe-savings

HTH

GG

[PinkDalek]

Got this message in an email from my Bank, but nothing yet on the FSCS site.

Limit to back to £85000.

https://www.fscs.org.uk/what-we-cover/c ... it-limits/

GG

As you say, the FSCS page you reference has yet to be updated. However, this news item, dated 16 January 2017,confirmed the change wef 30 January 2017:

https://www.fscs.org.uk/news/2017/janua ... er-update/

In more detail with regards to the Consultation which commenced last year:

http://www.bankofengland.co.uk/pra/Page ... vings.aspx

[gryffron]

Well the EU rules are €100k minimum are they not? So presumably the GBP limit must change as the exchange rate shifts. Which means by my reconning £85k is still a few quid short. Another rise soon?

gryff

[PinkDalek]

Well the EU rules are €100k minimum are they not? So presumably the GBP limit must change as the exchange rate shifts. Which means by my reconning £85k is still a few quid short. Another rise soon?

gryff

This https://www.fscs.org.uk/what-we-cover/q ... t-changes/ seems to be out of date in parts but it includes:

When will the limit be reviewed again?

The directive requires the PRA to review the limit every five years. The limit of £75,000 [PD edit: now £85,000] is unlikely to change before then, unless there are unforeseen events such as significant currency fluctuations. The PRA is required to review the FSCS limit every 5 years, and will manage any future changes in a way that seeks to minimise disruption for depositors.

[gryffron]

unless there are unforeseen events such as significant currency fluctuations.

From your link:
"it is now necessary for those Member States that convert the limit into their national currency to review the existing coverage level, using exchange rates prevailing on 3 July."

So we have an annual review based on currency rates at that date. At least as long as we remain in the EU. Although I suspect it is more likely than not, that we will continue to comply with their banking regs for future market access.

gryff

[PinkDalek]

unless there are unforeseen events such as significant currency fluctuations.

From your link:
"it is now necessary for those Member States that convert the limit into their national currency to review the existing coverage level, using exchange rates prevailing on 3 July."

So we have an annual review based on currency rates at that date. At least as long as we remain in the EU. Although I suspect it is more likely than not, that we will continue to comply with their banking regs for future market access.

gryff

I missed that but the 3 July may refer to the 2015 review when I think the revised directive was effective. The year 2015 being mentioned in some but not all of the (when opened) Q&As, such as this one:

Why didn’t the PRA make an earlier announcement?

The recast DGSD specifically requires a review on 3 July 2015. It was not possible to undertake a review before this date or to announce any measures until the review has taken place and any appropriate measures were agreed.

It is confusing and I haven't found anything to say it has to be reviewed annually but I imagine the full detail will be somewhere!

[greygymsock]

It is confusing and I haven't found anything to say it has to be reviewed annually but I imagine the full detail will be somewhere!

the limit is normally supposed to be reviewed every 5 years (IIRC - but certainly not as often as every year). the cut to £75k followed a normal review. the increase to £85k comes from a special review, which they can decide to do when the GBP:EUR exchange rate has changed significantly.