News Change to Financial Claims Scheme
First Option Credit Union has greeted changes to the Financial Claims Scheme with open arms after an announcement made yesterday by the Australian Government.
The changes see a new permanent cap of $250,000 being imposed on all depositors to nationally regulated banking institutions. The new cap takes effect in February 2012 when the current cap of $1 million will be removed.
The current $1 million cap has been under review since May 2011 and according to Abacus (Credit Union industry body) was only established due to widespread economic uncertainty in late 2008.
The announcement of the changes has been viewed as a positive reflection of the state of Australia’s banking institutions.
"Today's announcement is a vote of confidence in the strength and stability of Australia's banking institutions, including Credit Unions," said Louise Petschler, Abacus CEO.
For more information please download the Abacus Fact Sheet.
