The PRA is required by the Deposit Guarantee Schemes Directive (DGSD) to recalculate the Financial Services Compensation Scheme (FSCS) deposit protection limit every five years and set it at a sterling amount equivalent to EUR 100,000.
The new limit was set by the PRA on 3 July 2015 at £75,000. However, HM Treasury has set out legislation to maintain the previous limit of £85,000 until 31 December 2015 for depositors who were previously protected by the FSCS and continue to be protected (including individuals and small companies). The DGSD also extends deposit protection to some categories of depositors that were not previously protected by the FSCS, such as large corporates. The new limit of £75,000 applied to these newly protected depositors from 3 July 2015.
Also from 3 July 2015, depositors with temporary high balances are covered up to £1 million for six months from the date on which the money is transferred into their account, or the date on which the depositor becomes entitled to the amount, whichever is later. For insurance policyholders, the PRA has changed the insurance limits for FSCS compensation to increase protection for policyholders in the event of an insurer failing. This increases the limit to 100% of cover for all long term policies, for professional indemnity insurance and claims arising from death or incapacity.
View PRA announces changes to depositor and policyholder protection, 3 July 2015