What is the position for people who have multiple accounts with banks that are subsidiaries of another bank?
For people who hold multiple accounts in banks that are part of a larger group, if each of the banks is separately authorised by the Financial Services Authority: • FSCS would pay compensation up to the limit of £50,000 per person, per authorised institution. If each of the banks is not separately authorised but is covered by the parent company’s authorisation: • FSCS would pay compensation up to the limit of £50,000 once, irrespective of how many different institutions a person held accounts with. If you have a question about how a bank or building society is authorised, please contact the Financial Services Authority Consumer Contact Centre on 0845 606 1234.
We have received some enquiries about how we would apply the compensation limits to people who hold multiple accounts in banks that are part of a larger group. If each of the banks is separately authorised by the FSA: • FSCS would pay compensation up to the limit of £50,000 per person, per authorised institution. If each of the banks is not separately authorised but is covered by the parent company’s authorisation: • FSCS would pay compensation up to the limit of £50,000 once, irrespective of how many different institutions a person held accounts with.
