Deposit protection debate continues

Three options have emerged in discussions about limits on depositor protection under the Financial Services Compensation Scheme (FSCS), following the January 2008 consultation “Financial stability and depositor protection”, issued by the tripartite authorities but no consensus exists on whether the existing maximum of £35,000 should be retained, raised by a fixed amount or an upper limit abandoned altogether. An increase to £50,000 per person per bank has, however, been widely discussed and the prospect of per brand compensation is also under consideration.