| Author (Person) | Tait, Nikki |
|---|---|
| Series Title | Financial Times |
| Series Details | 12.7.10 |
| Publication Date | 12/07/2010 |
| Content Type | News |
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As part of its response to the economic and financial crisis, the European Commission adopted a package on 12 July 2010 to boost consumer confidence in financial services by improving protection for insurance policy holders, bank account holders and investors in the EU. + A proposal to improve deposit-guarantees in European banks: Deposit guarantee schemes ensure that bank account holders get their savings back in case of bank failure. Currently, there are 40 such schemes operational in the 27 EU countries. Sometimes, schemes are different even within the same country. The Commission is now coming forward with proposals to ensure that all banks throughout the EU will provide a uniform level of protection to depositors. Furthermore, the Commission's proposal will ensure faster payouts in case of bank failure, better information to account holders and sound financing of the schemes. + A proposal to enhance EU investor compensation schemes: Investor compensation schemes aim to protect investors against the risk of losses in the event of an investment firm's inability to repay money or return assets held on behalf of their clients. Currently there are 39 Investor Compensation Schemes in 27 Member States for investors with varying levels of protection. In order to ensure an adequate level of protection in the whole EU, the Commission will propose minimum rules on how these protection schemes should function. The aim is to bring more clarity to the current system faster payouts, a higher level of compensation and better information for investors. + A White Paper on Insurance Guarantee Schemes: Insurance Guarantee Schemes (ISG) provide last-resort protection to consumers when insurers are unable to fulfil their contractual commitment, offering protection against the risk that claims will not be met in the event of a failure of an insurance company. Currently, with no common EU rules on ISG in place, only 12 of the 27 Member States operate one or more such schemes. The White Paper will set out ideas for a coherent framework in the EU on IGS in order to remedy existing loopholes and inequalities. |
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| Subject Categories | Business and Industry |
| Countries / Regions | Europe |
