However let us break down the figure. So £26 billion divided by 11years = £2.3 billion
The FSCS is funded by levies on the participating companies. The scheme receives over 250 million pounds per year in annual and interim levies. The maximum the FSCS is allowed to levy is 4.1 billion pounds, according to data from wikipedia, so the rest is covered by the Bank of England.
So according to FSA.org.uk website in Q&A Section 7 it states that:
The length of time a claim takes to process will depend upon a number of factors, like the type and complexity of a claim, and the level of information we need to gather from other sources. Some of these factors may be entirely outside our control, but we are still able to provide general guidelines for each claim type.
How long will it take? The length of time each claim takes to process depends on a number of factors, some of which are entirely outside the FSCS's control, but we will try to process your claim within the following timeframes: Claims against deposit takers The FSCS will aim to pay compensation in the majority of cases within seven days of a bank, building society or credit union failing. Any remaining claims, which are likely to be more complex, will be paid within 20 working days. Claims against all other companies The FSCS tries to resolve all claims against Investment firms, Insurance Brokers, and Mortgage Brokers within six months of receipt of your correctly completed Claim Application Form, or within six months of the company being declared in default (whichever is later).
MORE than 19,000 savers made investments totalling £350 million into Keydata-branded plans, mainly in 2006 and 2007, where the money was passed on by Keydata, which went into administration last year, to a Luxembourg company called Lifemark. The plans, mainly five-year terms, promised either regular income or rolled-up growth and were sold by intermediaries such as Norwich & Peterborough Building Society. Keydata went into administration in June 2009 and Lifemark entered provisional liquidation in Luxembourg five months later.
It is a fact that customers have been waiting for their funds more than 6 months.
So for example if Barclays Bank Plc, HSBC, Lloyds Bank, etc. will default the FSCS will cover your deposits, investments within 7 working days!
I doubt that FSCS will be able to cover even half of the deposits within 7 days or even lets say a month. What about numbers, Royal Bank of Scotland serves over 25 million customers in the UK, Barclays Bank Plc. serves more than 15 million same figure goes for HSBC with over 15 million customers in the UK, so you want to tell us that FSA and Bank of England will cover all the funds? Yes, there is the possibility that they will cover the funds but only after devaluing the pound, and i doubt that it will be done within a month or so unless people will revolt. We all remember london riots of 2011 following the death of Mark Duggan which we have seen on the TV last year with buildings and other properties burning.
So, as i have already mentioned in my previous YouTube videos that all these schemes regarding compensations is an illusion just to keep the public calm. What needs to be done and implemented is that people running all those ponzi schemes should be punished and sent to prison with lengthy sentences handed down to them by judges.
Not like what we see on the news regarding MF Global (which has no clue where the money is) or fixing of Libor by Barclays Bank, or HSBC laundering drug cartels money, or Standard Chartered Bank by helping Iranian regime with over 60,000 transactions and funds of £250 billion going through the bank and others. We didn't see anyone doing the term, did we?
My advice will be to keep it simple in order to be successful, if you have funds within different financial institutions try to diversify them overseas especially try to go east because this is where the growth is. You all probably heard that you should not keep all your eggs in one basket but i will ask/ challenge you what if all your different baskets are carried in one hand?!
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