Compensation claims against collapsed investment firms and home finance brokers will be 100% protected up to a £50,000 limit from the beginning of next year, the FSA confirmed today.
Currently, claimants are covered for 100% of the first £30,000 and 90% of the next £20,000, an arrangement the regulator described as "confusing".
Insurance claimants, including general, life and pure protection, will also receive 90% protection with no upper limit. Currently it is 100% of the first £2,000 and 90% of the remainder.
"The changes will help consumers understand and have confidence in the protection provided by the FSCS," FSA managing director of retail markets Jon Pain says.
Putting the tech into protection
Square Mile’s series of informal interviews
Fallout from Haywood suspension
Launching later in 2019
£80bn funds under calculation