FSCS scope extends to EEA policyholders

Europeans who take out general insurance and long-term policies with local branches of UK firms will be afforded the same levels of protection as UK policyholders under new proposals by the Financial Services Authority. In a consultation paper to discuss changing the rules, the FSA said inconsistencies in its application of the Financial Services Compensation Scheme (FSCS) had been brought to its attention by the European Commission which was concerned that the compensation scheme treats UK and EEA policyholders differently.