There was discussion in the months that followed about the future of this core part of FSCS’s protection, and whether the current compensation limit is sufficient for consumers and businesses alike.
Beauchamp said the Prudential Regulation Authority confirmed an extension to the depositor protection rules at the end of March, so that customers of e-money and payment institutions are now better protected by FSCS in the event an underlying bank fails.
“Despite increased interest in the sector, we’ve had a relatively quiet year in terms of claims – with two Credit Union failures over the summer,” he said.
“These failures affected around 8,000 members and saw FSCS paying out approximately £1.5mn in compensation.”
sonia.rach@ft.com
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