UK - The Financial Services Authority (FSA) has published the final rules for a Financial Services Compensation Scheme (FSCS) that will come into effect on December 1, 2001.
Once enforced, the scheme will fully replace eight existing arrangements that provide compensation if a firm collapses owing money to investors, depositors or policyholders.
The framework for the new scheme follows consultation with industry and consumer groups.
Currently transitional arrangements - the transfer of claims and funding from the different schemes into the FSCS - are being discussed so that the FSCS may pay compensation for activities before December 1, 2001.
The FSA is also consulting the limit to be set on FSCS management expenses from December 1, 2001 to March 31, 2002. Comments on this consultation should reach the FSA by October 4.
By Janet Du Chenne
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