But where does the money come from?
It can't have escaped your attention that a bank or two has failed in the last three months. You will recall from the last update that your deposits are now guaranteed up to £50,000. But who guarantees them? And where does the money come from?
Unlike as most people think, it is not the government that digs deep into its pocket to protect you when a bank fails. It is the Financial Services Compensation Scheme (FSCS). The scheme is run by the FSA, which collects contributions to the scheme from all those who are registered with the authority each year, to meet the claims on failed banks.
If only we could keep all of the fees we charge! But, alas, a proportion of all fees is paid into the FSCS to protect your money - we knew you'd feel sorry for us!
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FSA Statement
Wealth and Tax Management Independent Financial Planners is the trading name of Byrne Williams Limited which is authorised and regulated by the Financial Services Authority. Company registered number 2020674. Registered in England and Wales. Registered address: 1 The Willows, Mill Farm Courtyard, Stratford Road, Beachampton, Milton Keynes, MK19 6DS
