Scrutiny review to explore financial protections for bank customers
Scrutiny
28 July 2025
A Scrutiny Panel will review the level of compensation available to individuals with savings, as part of contingency measures for rare cases of bank insolvency after calling in draft proposals to transfer oversight of the scheme to the Jersey Resolution Authority.The Economic and International Affairs Scrutiny Panel called in the proposition, put forward by the Minister for External Relations, during the States Meeting held on 8 July 2025 after Members adopted the draft Law in principle.
Both under the current and proposed law, up to £50,000 can be awarded to each eligible account when compensation is due. The maximum level of compensation has not changed since it was introduced in 2009.
The Panel is disappointed that the opportunity to review and update the limit had not been taken during the formation of the law, despite inflation increasing by 67% since 2009. The Panel is also aware that the equivalent scheme in the UK limits compensation to £85,000 per depositor, and there are proposals to increase it further.
The review will consider whether the limit should be increased and the potential impacts of altering the limit, including the effect on Jersey’s competitiveness and the funding of any changes.
Deputy Montfort Tadier, Chair of the Panel, said: ‘An argument that has been presented to rationalise the current compensation limit is that it is in line with those set in Guernsey and the Isle of Man, and that it is appropriate and proportionate for the size of the Island. However, the Panel is aware that other small jurisdictions such as Gibraltar allow for compensation limits of €100,000 which, once converted, would put it more on par with the UK. We feel this leaves savers in Jersey at a disadvantage over their counterparts in other jurisdictions and feel that further consultation on the limit would have been useful in this matter. The Panel acknowledges that any increase to the compensation limit would have an impact on how the scheme is funded, which is why we are seeking the views of Islanders and professionals in this matter.’
The Panel wants to hear from members of the public, especially those with savings of £50,000, regarding the current levels of compensation available. Submissions can be made via email ([email protected]) or through the States Assembly website. The Panel will also hold a public hearing with the Minister for External Relations as part of the review process.
The Panel will present its findings and recommendations to the States Assembly ahead of further States debate on the draft Law which is due to take place in September.
More information about the review can be found via the Panel’s page on the States Assembly website.
