Building-in protection is a better alternative.(Brief article)

Financial Adviser,  December, 2007  

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The Investment Management Association has made a brave call for state guaranteeing of all deposit accounts in banks and other saving institutions. Apart from clearly demarcating where deposit protection should end - separating out investments from ordinary savings accounts - there is also a clear need to limit any such protection.

In the current financial climate, the principle is already established, with the nationalisation of the crisis-ridden Northern Rock deposit accounts.

But there is no compelling reason why taxpayers should provide any such protection, having already ...

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