Update- Financial Claims Scheme (FCS) The new Financial Claims Scheme (FCS) will commence on Wednesday, 1st February 2012 and will provide a permanent guarantee for deposits with an authorised deposit taking institution (ADI) incorporated in Australia such as Australian banks, building societies, credit unions and foreign subsidiary banks. Warning, the FCS does not apply to branches of foreign banks, specialist credit card institutions, providers of purchased payment facilities or interest bearing investments in institutions that are not ADIs supervised by APRA. FCS will provide a permanent guarantee of up to a total of $250,000 in deposits that each depositor has with an ADI which is a reduction from the current up to $1,000,000 per depositor per institution. The change to the new FCS means that for term deposits that existed on 10th September 2011 and mature/rollover on or after 1st February 2011 the existing $1,000,000 guarantee will apply until maturity or 31 December 2012, whatever occurs first. While for term deposits made after 10th September 2011 the $1,000,000 cap will apply up until 1st February 2012 when the new $250,000 cap commences. At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me via ‘Contact Us’ at www.newealth.com.au or to call me on +61 2 9267 2322.
6th-October-2011 | 
