FSA: Banks must display deposit protection details

15 December 2011

Banks in the UK are set to have to clearly show savers how much compensation they will be entitled to receive should their institution fail in the future.

Under new proposals unveiled today (14 December) by the Financial Services Authority (FSA), it will become compulsory for financiers of all types to "prominently display" this information both online and in branches.

This, the regulatory body stated, forms part of the attempts of it and the Financial Services Compensation Scheme to enhance levels of assurance among consumers in relation to the banking industry.

The new rules dictate that all lenders must inform consumers they are entitled to deposit protection up to the sum of £85,000 ($131,000).

Hector Sants - chief executive officer of the FSA, which operates under the Financial Services and Markets Act 2000 - observed: "It is vitally important that customers have confidence in the banking system."

By Asim Shah

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