The FSA has proposed setting the new FSCS deposit compensation limit for investors at £85,000 - but says it may revise this figure if the euro-sterling exchange rate deteriorates.
The new sterling limit, set out in today's quarterly consultation paper, will take effect from 31 December and follows on from the increase in the euro maximum amount to €100,000 after changes to European legislation. Although the change does not come into effect until December, the regulator says it has a statutory obligation to consult on the proposed rules beforehand and, as such, calculated the sterling amount based on the rate of exchange on 1 October. Using the Bank of England's daily spot rate, €100,000 equated to £86,971 on 1 October. The FSA then rounded off this figure to th...
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