On October 3, the UK Financial Services Authority (FSA) increased the compensation limit for bank deposits from £35,000 ($61,000) to £50,000 ($87,000) and joint bank accounts will be eligible to claim up to £100,000 ($174,000). The increase took effect on Tuesday, October 7.
The FSA also published CP08/15 Financial Services Compensation Scheme: Review of limits consultation paper on further reforms. The consultation considers whether the compensation limit should be raised further,how the UK Financial Services Compensation Scheme pays compensation, and the basis upon which bank deposits are covered. The consultation also sets out proposals to improve the overall scheme and to ensure consistency with respect to compensation limits for the investment, insurance and home finance sectors.
The consultation closes January 5, 2009.