Temporary rules allowing separate compensation cover for customers with deposits in two merging building societies are set to be extended.
The FSA today proposes to allow individual cover until December 2010. The rule was due to expire in September this year. It also proposes a cover extension for customers of a building society which merges with a subsidiary of another mutual society, and for customers whose deposits are transferred from a failed firm to another deposit taker where they already have an account. The rules were introduced following concerns customers with savings in two merging societies could find their combined investment exceeded the £50,000 maximum deposit protection limit for the Financial Services Com...
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