ABI: Deposit protection: No increase needed
Responding to the joint consultation released today outlining proposals to strengthen the current framework for financial stability and depositor framework, Stephen Haddrill, Director General of the ABI (Association of British Insurers) commented:
“The recent Treasury Select Committee’s report established that there is consensus on a number of points about the UK’s deposit protection scheme. The Committee argued, and we strongly agree, that the case has not been made for increasing the compensation limit above the current £35,000, which covers around 98% of savers.
“We will also continue to argue that any cross-subsidy between different parts of the financial services industry would increase the risk that difficulties in one sector could be passed onto others, leading to a wider loss of confidence. It is good that the FSA now appears to be prepared to review its new arrangements.”
“All sides agree that reforms should enable payments to depositors to be made much more quickly than is possible at present. This paper sets out some useful ideas, and we will consider it in detail and respond to the consultation.”
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Notes for Editors
1. Enquiries to:
Alan Leaman 020 7216 7440 (Mobile: 07957 482 330)
Malcolm Tarling 020 7216 7410 (Mobile: 07776 147 667)
Jonathan French 020 7216 7392 (Mobile: 07958 330 480)
Erfan Hussain 020 7216 7411 (Mobile: 07712 841 184)
Kelly Ostler 020 7216 7415 (Mobile: 07968 364 302)
2. The ABI is the trade association for Britain’s insurance industry. Its nearly 400 member companies provide over 94% of the insurance business in the UK. It represents insurance companies to the Government, and to the regulatory and other agencies, and is an influential voice on public policy and financial services issues. ABI member companies hold up to a sixth of all investments traded on the London Stock Exchange, on behalf of millions of pensioners and savers.
3. An ISDN line is available for broadcasts.
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