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Deposit protection No increase needed

Responding to the joint consultation released today outlining proposals to strengthen the current framework for financial stability and depositor framework, Stephen Haddrill, Director General of the ABI (Association of British Insurers) commented:

"The recent Treasury Select Committee's report established that there is consensus on a number of points about the UK's deposit protection scheme. The Committee argued, and we strongly agree, that the case has not been made for increasing the compensation limit above the current £35,000, which covers around 98% of savers.

"We will also continue to argue that any cross-subsidy between different parts of the financial services industry would increase the risk that difficulties in one sector could be passed onto others, leading to a wider loss of confidence. It is good that the FSA now appears to be prepared to review its new arrangements."

"All sides agree that reforms should enable payments to depositors to be made much more quickly than is possible at present. This paper sets out some useful ideas, and we will consider it in detail and respond to the consultation."

Last updated 01/07/2016