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.
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