In its response to the joint Treasury, FSA and Bank of England consultation paper on financial stability and depositor protection, the IMA says the move would bolster confidence.
The British Bankers’ Association and the Association of British Insurers have rejected any need for a rise in the current Financial Services Compensation Scheme limit.
The IMA also stresses the need for banks and their audit committees to revalue their assets properly to ensure all the bad news is taken into account to allow confidence in those markets to be restored.
Director of wholesale Guy Sears says: “We have heard much about the problems the current crisis is causing the banks but we would like to hear equally vocal support for an enlarged, and easy to understand, compensation scheme for their depositors. The UK’s asset managers appear to be a lone voice calling for depositors’ interests to be put first.”