Is your bank ready for these changes?
How can you benefit from the new regulation and what are the penalties for failing to comply? |
Following the global economic downturn, various EU Governments have provided blanket guarantees on all bank deposits to maintain confidence in their financial systems. Here in the UK the Financial Services Authority (FSA) proposals and the EC Deposit Guarantee Scheme Directive (DGSD) each assume that if a retail deposit taker in default is able to rapidly pay affected customers compensation to an agreed limit, there will be less likelihood of a ‘run on the banking system’ and ‘consumer hardship’.
The aspiration, rationale and the implementation time frame are the same although the detailed objectives differ, however by 31 December 2010 banks must have in place a ‘fast payout’ system, and for the FSA this means within 7 days and the DGSD requires payment within 20 days. There is also the issue of raising the depositor’s limit to €100,000 by the end of 2010 – currently standing at €50,000. Since this sum is still under consideration by the EU, this is a perfect opportunity for senior executives from the UK banks to hear from key industry spokespeople about what exactly these changes are and how they will affect the financial institutions.
The EBF Breakfast Briefing is an exclusive networking event for key decision makers within the banking industry. It will provide invited delegates the golden opportunity to discuss the impacts this latest regulation will have on their business and to find out how customer confidence can be improved through successful management of CRM systems. Delegates will be able to listen to top knowledge providers as well as take part in the Q&A Panel Discussion.
