The FSA has confirmed that the new deposit compensation limit for the UK increased from £50,000 to
£85,000 per person, per authorised firm, effective from 31 December 2010. This is the Sterling equivalent of the €100,000 deposit compensation limit which came into force in all European Economic Area (EEA) member states at the end of 2010.
Further changes coming into effect on 31 December 2010 are:
• Fast payout rules, with a target of a seven day payout for the majority of claimants and the remainder
within the required 20 days
• Gross payout, which protects customers by ring fencing their deposits if they have savings and loans
with the same firm. Currently, any outstanding loan or debt would be deducted from any
compensation.
This new pan European requirement replaces the existing UK arrangement which has been in place since
2009, and which allowed for separate compensation cover for customers with deposits in two merging
building societies
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