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Consumer awareness of deposit protection is important in maintaining consumer confidence and financial stability. The regulator wants to ensure that consumers are aware of the protection that applies to the deposits they hold in banks, building societies and credit unions if their deposit taker fails. Consumers also need to know the limits of that protection so they can make informed decisions.
So to complement and strengthen existing compensation disclosure requirements aimed at raising consumer awareness, the FSA has strengthened the disclosure requirements. The regulator will now require deposit takers prominently to display stickers and posters in branches and on websites (in electronic form) explaining the compensation arrangements.
In this Policy Statement, the FSA gives its feedback on the responses it received to its consultation on this and explains its new requirements.
This Policy Statement should be read by all deposit takers operating in the UK, including banks, building societies and credit unions. It will also be of interest to consumers and consumer representative groups.
All deposit takers must comply with the rules by 31 August 2012, with the exception of Northern Ireland credit unions who are expected to comply with these rules at the same time as they become subject to other FSA disclosure rules.