PRA confirms increase in FSCS cover

PRA has issued a policy statement confirming it will increase the deposit protection limit provided by the FSCS to £85,000 from 30 January 2017. This is an increase from £75,000 to reflect currency fluctuations that occurred following the UK’s referendum vote to leave the EU. Firms must make all changes to customer-facing materials required to implement the new deposit limit as soon as practicable after 30 January 2017 and in any event on or before 30 June 2017. Firms should also train their customer-facing staff to answer questions from customers about the change in the deposit limit, regardless of when a firm’s written materials are amended, by 30 January 2017 or as soon as practicable after 30 January 2017.

PRA has published the new rules to implement this change, and a revised version of its supervisory statement on depositor and dormant account protection