Charity protection offered by government scheme "unclear"
Charities
16th June 2009
It is not clear what level of protection is provided to charity funds under the Financial Services Compensation Scheme, it has been suggested.
According to a poll of organisations by the Charities Aid Foundation (CAF), 35 per cent of charities have found that the initiative is unclear about the level of cover offered and a further 34 per cent neither agreed, nor disagreed with the statement.
Just 32 per cent understood the level of protection the scheme provided and CAF chief executive John Low has called for charities to be allocated a separate depositor class.
"There is confusion around the classification of wholesale and retail depositors, with charities unsure as to whether they are eligible for compensation or indeed the levels of compensation offered," he explained.
Many UK agecies are currently waiting for a response from the Treasury to the House of Commons Treasury select committee after a report by MPs called for full compensation for charities affected by the collapse of Icelandic banks.
An independent body, the FSCS is intended to provide customers of authorised financial services firms with compensation if companies are unable or unlikely to pay claims against them.
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