PRA consultation on FSCS temporary high balances coverage extension

Industry News | 09/07/20

The Prudential Regulation Authority (PRA) has published for consultation CP6/20, Financial Services Compensation Scheme – Temporary High Balances Coverage Extension. The paper sets out the PRA’s proposal to extend coverage under the Financial Services Compensation Scheme (FSCS) for Temporary High Balances (THB) from six months to twelve months from the date of deposit, or the first date the THB becomes legally transferrable to the depositor. THB coverage would revert back to six months from 1 February 2021. The consultation paper is relevant to retail financial consumers who are currently, or may become before 1 February 2021, THB depositors; to the FSCS; and to all PRA-authorised deposit takers. The consultation closes on 23 July 2020.