Regulatory Update: FSCS Deposit Protection Limit Rising to £120,000 – Key FSCS SCV Reporting Changes for Banks and Deposit Taking firms

Under the new rules, joint accounts will still be protected per individual, meaning each holder is covered up to £120,000, giving a combined protection of £240,000.
Banks will need to ensure accurate depositor mapping in their SCV files to avoid misreporting account ownership proportions.

While the underlying file formats are unlikely to change, the internal logic, threshold validations, eligibility rules, and THB tagging criteria absolutely will.

This means banks must ensure their systems can:

• apply new limit checks
• reflect revised PRA rules
• flag new validation thresholds
  Macro Global’s v25 SCV Alliance updates take care of all these changes automatically.

If a failure occurs before 1 December, the current £85,000 limit still applies.
The new £120,000 limit only applies to failures occurring on or after the effective date.
Banks must ensure their SCV systems can handle both thresholds during the transition window.

THB cover will increase from £1 million to £1.4 million, offering enhanced protection for major life events such as:

• property sales
• inheritance
• divorce settlements
• redundancy payments
• insurance payouts

THBs continue to be protected for six months from the date the funds are deposited.

Most customers will not need to resubmit documents, but banks must prepare for enhanced scrutiny.

Evidence such as:

• property completion statements
• probate documents
• settlement agreements
• insurance payout letters
  must be captured cleanly and retained properly for FSCS review.
  SCV Alliance v25 introduces structured THB documentation mapping for this.

Yes, but the rules stay the same.
If multiple trading names operate under a single PRA-authorised entity, the £120,000 limit applies to the combined total, not per brand.
Banks must ensure their SCV logic aggregates across connected brands correctly — commonly a weak point in legacy SCV systems.

Yes. The new FSCS thresholds mean banks must adjust:

• SCV file generation to reflect the £120k limit
• eligibility and aggregation logic
• THB categorisation and supporting evidence
• audit, reconciliation, and validation cycles

Institutions relying on manual or legacy SCV systems will need to take particular care to avoid FSCS regulatory compliance risks.

Absolutely. SCV Alliance v25 and the updated SCV Forza are already being enhanced to support:

• the new £120k FSCS limit
• the revised £1.4m THB protection
• improved eligibility tagging
• updated regulatory reporting logic
• future-proof configuration and audit intelligence

These updates will be delivered well before the December 2025 deadline, ensuring seamless compliance for all customers.