Announcement of new permanent Financial Claims Scheme cap by the Treasurer

On 11th September 2011, Wayne Swan announced a new permanent cap for the Financial Claims Scheme (FCS) of $250,000 per person per institution to protect savings of 99% of Australian deposit accounts in full.

The new permanent cap of $250,000 will apply from February 2012 to depositors in all of Australia’s regulated banking institutions: credit unions, building societies and banks.

Established in October 2008, the Financial Claims Scheme’s purpose was to protect depositors of banks, building societies and credit unions as well as policyholders of general insurers from potential loss.

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Australian mutuals, represented by Abacus have welcomed the announcement and expressed a positive response.