The Centre for Policy Studies, a leading think tank, is claiming that compensation schemes for deposits held in banks has created ‘moral hazard’ and prevented the institutions taking responsibility for lax risk controls (Investment Management Bristol). It goes on to say that it has enabled banks to raise cheap finance by believing that the government will ultimately become responsible for the deposits. At present, the Financial Services Compensation Scheme pays out up to £75,000 per person per institution if the bank is unable to meet its obligations. This was reduced at the beginning of the year from £85,000 to fall in line with EU law. The report coincides with news that the UK has finally recouped all the money it spent bailing out Icesave customers when it collapsed in 2008. The treasury have said the final tranche of £740m will be used in part to pay down the national debt.
Investment Management Bristol
If you would like to speak with one of our Independent Financial Advisors and potentially receive financial advice, please contact us on 0117 923 7652. We are based in Clifton, Bristol but we are happy to service clients from across the UK and we provide free initial meetings at our client’s convenience.
Churchill Wealth Management Limited is located at 13 Alma Vale Rd, Bristol BS8 2HL, United Kingdom.
About Us: Churchill Wealth Management is a team of independent financial advisors/financial advisers (IFAs) based in Clifton, Bristol. We provide independent financial advice, including pension advice, investment advice, inheritance tax planning and protection/insurance advice.