| Author (Corporate) | European Commission: DG Communication |
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| Series Title | Press Release |
| Series Details | IP/10/918 (12.7.10) |
| Publication Date | 12/07/2010 |
| Content Type | News |
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As part of its work creating a safer and sounder financial system, preventing a future crisis and restoring consumer confidence, the European Commission on 12 July 2010 proposed changes to existing European rules to further improve protection for bank account holders and retail investors. Furthermore, the Commission has launched a public consultation on options to improve protection for insurance policy holders, including the possibility of setting up Insurance Guarantee Schemes in all Member States. For bank account holders, the measures adopted mean that in case their bank failed, they would receive their money back faster (within 7 days), increased coverage (up to €100,000) and better information on how and when they are protected. For investors who use investment services, the Commission proposed faster compensation if an investment firm fails to return the investor's assets due to fraud, administrative malpractice or operational errors, while the level of compensation is to go up from €20,000 to €50,000. Investors will also receive better information on when the compensation scheme would apply and get better protection against fraudulent misappropriations where their assets are held by a third party - such as in the recent Madoff affair. The proposals, fully in line with the EU's commitments under the G20, are now passed to the European Parliament and the Council of Ministers for consideration. |
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| Source Link | Link to Main Source http://europa.eu/rapid/pressReleasesAction.do?reference=IP/10/918&format=HTML&aged=0&language=EN&guiLanguage=en |
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| Subject Categories | Business and Industry |
| Countries / Regions | Europe |
