FSA bids to speed up compensation scheme

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The FSA wants consumers to be compensated within seven days of a bank collapsing as part of proposals to reform the Financial Services Compensation Scheme (FSCS) .

It estimates the changes, if implemented, will cost around £930m to set up and maintain, with ongoing annual costs of around £4m, for deposit-taking firms. Chief executive Hector Sants says the FSCS proved robust and efficient during last year's troubles but believes improvements can be made. The paper explores ways of reducing the time it takes for depositors to receive compensation in the event of a bank's failure. The FSA recommends simplifying eligibility for compensation to include all private individuals and small organisations, as well as making gross payments, which ignore any...

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