PRA is consulting on extending coverage under the FSCS for temporary high balances in bank accounts, in response to Covid-19. PRA feels it would be appropriate to cover the balances (on up to £1m) for 12 months from the date of deposit or the date on which the balance becomes legally transferable to the depositor. PRA proposes it would revert back to 6 months from 1 February 2021.
PRA would not require firms to update their customer information sheets to reflect the change, but, if they do, they would have to change them back again before 1 February 2021.
PRA seeks comments by 23 July.