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<p>The Deposit Guarantee Scheme Directive (DGSD) is a single market measure to ensure
that depositors are entitled to the same level of protection wherever they deposit
their money, and that UK firms are not competitively disadvantaged in relation to
firms in other EEA jurisdictions.</p><p> </p><p> </p><p> </p><p>As a result of the
current strength of the pound in relation to the euro, it has been necessary for the
Prudential Regulation Authority to review the sterling coverage limit. However, the
Government has taken action to ensure that UK depositors are not exposed to a sudden
reduction in the level of protection they receive.</p><p> </p><p> </p><p> </p><p>
</p><p> </p><p>HM Treasury has laid a statutory instrument to ensure that depositors
who are currently entitled to £85,000 of protection from the Financial Services Compensation
Scheme will continue to be until 31 December 2015.</p><p> </p><p> </p><p> </p><p>This
will ensure that there is sufficient time available for depositors to be made aware
of the changes, and to take such steps as they feel necessary to manage their financial
affairs appropriately in light of this change. More than 95% of UK retail depositors
are expected to remain unaffected by the change to the coverage limit.</p><p> </p><p>
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