FSA to force banks to display consumer protection info

The Financial Services Authority (FSA) will force banks, building societies and credit unions to prominently display information to customers about the Financial Services Compensation Scheme (FSCS).

The move comes after FSCS research found consumer awareness of the scheme was extremely poor, despite a national TV ad campaign which cost £4m.

The regulator plans to make it obligatory for banks to display the information in all branches and on the websites of institutions.

In an attempt to improve consumer confidence, the FSA will force banks to state publicly: "Your deposits are protected up to £85,000 by the FSCS, the UK deposit protection scheme.

"Any deposits you hold above this amount are not covered."

Banks which are headquartered and authorized in the European Economic Area (EEA) but have branches in the UK will have to state that deposits held in them are not covered by the FSCS, and say which, if any, national scheme will protect their customers.

Hector Sants, chief executive of the FSA, said: "Consumers must understand how their money is protected and be clear about the limits.

"The posters and website notices we are going to be mandating will help to prompt consumers to get more information and to make informed decisions about how much money to deposit with one bank."