PRA proposes restoring £85,000 FSCS deposit protection

Limit was reduced last year

Carmen Reichman
clock • 1 min read

The Bank of England's Prudential Regulation Authority (PRA) is consulting on restoring the £85,000 limit of protection from the Financial Services Compensation Scheme (FSCS) on bank deposits following a dramatic fall in the value of the pound after Brexit.

The regulator changed the protection limit from £85,000 to £75,000 last July as part of a regular review. Following the Brexit vote in June, however, the value of the pound plunged against the euro. Therefore restoring the limit of deposit protection was intended to provide a "measure of memorability and consistency", the PRA said. The FSCS protects consumer savings and investments in the event of a firm's failure. According to EU regulations, non-euro member states of the European Union are required to adjust their deposit protection limits every five years to the equivalent of €1...

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