BSA welcomes FSA’s proposal to extend separate deposit protection limits
Commenting on the FSA’s announcement today that they intend to extend until December 2010 rules which allow separate compensation cover for customers with deposits in two merging building societies (see note 1), Brian Morris, Head of Savings Policy at the BSA, said:
“Today’s announcement is a welcome, sensible move and means members of societies that have merged, or whose deposits have been transferred to another society, will continue to enjoy the same levels of protection as if the merger or transfer had not occurred.
“It would not be appropriate if moves, such as mergers, designed to reassure and protect members led to a reduction in the levels of FSCS protection for members who have savings in both entities.”
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Notes to editors
1.The FSA also proposes a similar extension for customers of a building society which merges with a subsidiary of another mutual society and for customers whose deposits are transferred from a failed firm to another deposit taker where they already have an account.
2. The FSA’s press release can be viewed here http://www.fsa.gov.uk/pages/Library/Communication/PR/2009/072.shtml
3. The Building Societies Association (BSA) represents all 53 building societies in the United Kingdom. Building societies have total assets of £395 billion and, together with their subsidiaries, hold residential mortgages of almost £250 billion, more than 20% of the total outstanding in the UK. Societies hold over £240 billion of retail deposits, accounting for more than 20% of all such deposits in the UK. Building societies also account for about 37% of all cash ISA balances. Building societies employ over 51,500 full and part-time staff and operate through more than 2,000 branches.
4. Photographs of Brian Morris are available from the BSA press office, from the Association’s website at www.bsa.org.uk or Headlinemoney www.headlinemoney.co.uk
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