The Financial Services Compensation Scheme (FSCS) will increase the claims limit for investors to €100,000 from January 2011.
Currently investors are only protected on deposits up to £50,000.
The new FSCS limit follows changes to European legislation, and will take effect from 31 December this year.
The FSA plan to issue a consultation in October on increasing the coverage limit to the equivalent in sterling of €100,000.
But a spokesperson for the FSCS says the increase will "almost certainly" go ahead.
Yesterday, the FSCS moved to deny press reports it planned to cut the compensation cover for investments.
The chairman doggedly tries to be amusing
'Profitability is almost a myth'
Active Wealth in liquidation
Cautious welcome for volatility
Report output options