Protection on FSCS claims increases

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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. [email protected] IFAonline

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