FSCS Electronic Transfer of Compensation

The current arrangements for the calculation of FSCS liabilities of individual authorised firms were introduced in April 2013.  The FSCS is divided into five broad classes, which are allocated between providers and intermediaries.  The deposit class has a single contribution group comprising all banks, building societies and credit unions.

The deposit protection limit under FSCS increased to £85,000 from 30 January 2017.

The PRA are carrying out working to allow for the issuing of compensation to eligible depositers by electronic transfer, as well as by cheque. 

The BSA has welcomed this proposed change and sees the addition of electronic transfer of compensation as a positive change for customers as well as instilling further confidence in our financial system. Our full response can be found here.