The FSA's announcement today to improve the protection for deposits available under the Financial Services Compensation Scheme has been welcomed by the Consumer Panel.

John Howard, Chairman of the Financial Services Consumer Panel said:

"Guaranteeing 100% of the first £35,000 held on deposit is a sensible first step in giving consumers more confidence in the safety of their savings. We are pleased that the Treasury and the FSA are also considering changing the upper limit. We believe that the present £35,000 guarantee is too low but recognise that any increase in the guarantee will need to be funded, and are conscious that consumers are likely to bear at least part of that cost. So a balance needs to be struck between a sensible upper limit and the total cost of the scheme. We look forward to contributing fully to further consultations with the Government and the FSA."

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MEDIA ENQUIRIES

1. The FSA established the independent Financial Services Consumer Panel in December 1998 to advise its Board on the interests and concerns of consumers and to report on the FSA’s performance in meeting its objectives. The Consumer Panel has statutory status.
   
   
2. The emphasis of the Panel’s work is on activities that are regulated by the FSA, although it may also look at the impact on consumers of activities outside but related to the FSA’s remit. More information about the Panel's work is available on this website.
   
   
3. The Consumer Panel brings together a wide range of relevant experience. This includes financial services regulation, working with vulnerable consumers, consumer protection, consumer education, front-line money advice, legal expertise, competition policy, public policy analysis, market research and media.
   
   
4. There are currently twelve members of the Panel as listed below (for further information on individual members, see the Panel's website – www.fs-cp.org.uk)

John Howard (Chairman)
Adam Phillips (Vice Chairman)
Kay Blair
Michael Chapman
Stephen Crampton
Caroline Gardner
Jenny Hamilton
Tony Hetherington
Nick Lord
David Metz
Lindsey Rogerson
Carol Stewart