Depositor protection

The Australian Government has been considering introducing a financial claims compensation scheme for retail depositors in a failed authorised deposit-taking institution for some time.

In the UK from 1 October 2007, should a bank, building society or credit union go into default the Financial Services Compensation Scheme  will be able to pay compensation to 100% of the first £35,000 per person.

On 11 October 2007, HM Treasury, the Financial Services Authority and the Bank of England, issued a discussion paper Banking Reform - Protecting Depositors on reforming the framework to protect depositors.