The PRA has issued Consultation Paper 41/16: Deposit protection limit (CP41/16).
CP41/16 sets out the PRA’s proposal to reset the deposit protection limit at £85,000 as of 30 January 2017. However, the PRA also proposes a 5 month transitional period until 30 June 2017 for firms to implement changes to disclosure materials, advertising materials and Single Customer View and Continuity of Access systems to accurately reflect the new deposit protection limit. The PRA does not expect firms to send direct notification of the change in the deposit protection limit to depositors. However, once the proposals are finalised the PRA will expect firms’ staff to be aware of the new deposit protection limit and be able to communicate when the new limit becomes effective.
To reset the deposit protection limit, the PRA must amend rules within the Depositor Protection Part of the PRA Rulebook. The PRA also proposes to update Supervisory Statement 18/15: Depositor and dormant account protection (SS18/15), to provide further information on the PRA’s expectations in respect of the rule changes.
The proposed amendments to the Depositor Protection Part of the PRA Rulebook are contained in Appendix 1 of CP41/16 and the amendments to SS18/15 are contained in Appendix 2 of CP41/16.
The deadline for comments on the CP41/16 is 16 December 2016.
View PRA consults on increasing deposit protection limit, 21 November 2016