Building society depositors will benefit from twice as much protection in the event of a merger after the FSA revised its rules.
Recent turmoil in financial markets has resulted in a number of small societies merging with larger rivals, and the FSA is concerned some customers are losing their deposit security. Previously, if a customer held accounts with two different building societies, they would benefit from deposit protection of up to £100,000. However, if the two societies merge, depositors would only receive a total of £50,000 of guarantees. The FSA has changed the rules governing the Financial Services Compensation Scheme (FSCS) members to retain their full deposit protection from both societies in the e...
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