Rules
On 24 July 2009, the Financial Services Authority (FSA) published Policy Statement 09/11 on banking and compensation reform. This policy statement sets out the new measures for Faster Payout, including requirements for deposit takers.
The requirements go beyond producing a Single Customer View (SCV) - they also provide a specific set of "faster payout rules" to help ensure compensation can be paid within a target of seven days in the event a deposit taker fails. Implementation including the SCV deadline is on 31 December 2010.
New rules include:
- A requirement on deposit takers to maintain an SCV to give the FSCS the information it needs to achieve a faster payout in the event of a failure
- Simplifying the FSCS eligibility for depositors claims
- Moving to gross payout to depositors (ie set off will no longer apply)
- New disclosure requirements on deposit takers to provide information about the FSCS to their customers
On 6 November 2009, the FSA published Policy Statement 09/18 setting out the SCV verification requirements on deposit takers.
The FSA SCV Verification Policy Statement sets out new reporting requirements governing pre-implementation, implementation and ongoing verification of the SCV requirements. These tables set out the different reporting requirements that apply for deposit takers.
Key points to note include:
Threshold
There is a threshold below which the electronic submission of the SCV is not required. While deposit takers with less than 5,000 eligible accounts can opt out of the electronic requirements, these deposit takers will still need to be able to supply the relevant SCV information.
Deposit takers with less than 5,000 accounts can, from 6 December 2009, notify the FSA if they do not intend to comply with the electronic SCV requirements.
Senior management
The FSA has clarified previous references to 'senior management sign-off' and indicated that they expect relevant SCV reports are to be signed off on behalf of the board.
The FSCS will continue to work with trade associations and will respond to questions received in relation to the new rules.
SCV Timeline:
| Key Date | Milestone |
|---|---|
| 31 July 2010 | Deposit takers to complete pre-implementation report |
| 31 December 2010 | SCV implementation deadline |
| 31 January 2011 | Deposit takers to produce SCV and Implementation report |
| 31 July 2011 | Verification by the FSCS of firms' SCV and sign-off |