FSA confirms no change to payment limits
This follows a consultation by the FSA in which the majority of respondents supported the FSA’s proposal for no change to the limits. The recommendation was based on a review carried out during 2005 which found that:
– most claims or complaints are still well below the current maximum limits
– there is no evidence that consumer behaviour and market confidence are being significantly affected by current limits
– Financial Services Compensation Scheme (FSCS) limits significantly exceed EU minimum limits (currently £20,000) for deposits and investments
– FSCS limits are also generally higher than in other EU member states.
The current limits have been in force since the FSCS and the Financial Ombudsman Service started operating in December 2001 under the Financial Services and Markets Act 2000. The FSA plans to review the compensation and eligibility limits again in 2009.