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Business Banking Accounts ? Fscs/santander Related

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Got a request yesterday from Cater Allen who I bank with (Part of Santander)

Apparently due to new FSCS regulations they have to get more details of all 'small' businesses that may or may not be covered by the FSCS scheme - in the event of a Bank defaulting. :ph34r:

They required the info by 8 December. 6 days to turnaround. New regulations apparently come in on 31 Dec this year. You can write in or just go online and input basic details of your business turnover etc..

Anyone else business banking with any other banks had this ? Had a look at the FSCS website and could not find any recent news stories or anything.

I am thinking a few possibilities:

(1) FSCS have put out this request with little time to implement. Every bank is rushing to do it before the deadline.

(2) Cater Allen are just behind the curve with this and other Banks have this well in hand.

(3) Something a bit more worrying....

Any thoughts ?

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No.

Maybe you are running a private account they suspect is a business and they want to confirm and charge you properly....business class if you will...bigger seat, better food, double the cost.

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Just checking to see if you qualify for FSCS deposit cover in time for the Eric Cantona inspired European Bank Run on December 7th that might kill the banking system. ;) Very thoughtful of them.

Edited by General Congreve

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No.

Maybe you are running a private account they suspect is a business and they want to confirm and charge you properly....business class if you will...bigger seat, better food, double the cost.

No - this went out to Business Accounts. I have a Business Account.

Just checking to see if you qualify for FSCS deposit cover in time for the Eric Cantona inspired European Bank Run on December 7th that might kill the banking system. ;) Very thoughtful of them.

I hope not !!

Just seems exremely rushed - does it not ? 7 days to get back to them ?! Extremely unusual. Or maybe just massively inefficient.

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No - this went out to Business Accounts. I have a Business Account.

I hope not !!

Just seems exremely rushed - does it not ? 7 days to get back to them ?! Extremely unusual. Or maybe just massively inefficient.

It does seem rushed and seems to me like the FSCS is worried about ponying up when the inevitable happens and a bank that is too big to bail finally fails. Looks like his is just an emergency process/hurdle they have instigated to try and take some of the potential liability the FSCS face off the books. No doubt some small businesses will be too busy to process this request within 7 days and will unfortunately find themselves not covered by the FSCS when the SHTF. Result, major savings in deposit cover for a government that can't afford the guarantee anyway.

Edited by General Congreve

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It does seem rushed and seems to me like the FSCS is worried about ponying up when the inevitable happens and a bank that is too big to bail finally fails. Looks like his is just an emergency process/hurdle they have instigated to try and take some of the potential liability the FSCS face off the books. No doubt some small businesses will be too busy to process this request within 7 days and will unfortunately find themselves not covered by the FSCS when the SHTF. Result, major savings in deposit cover for a government that can't afford the guarantee anyway.

It sounds to me as if it is rushed by Cater Allen, not by Santander. I have a business account with Santander and received a similar letter around a month ago, so plenty of time to reply.

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It sounds to me as if it is rushed by Cater Allen, not by Santander. I have a business account with Santander and received a similar letter around a month ago, so plenty of time to reply.

Fair point, if that's the case. Still many small businesses are appalling with their admin, so this process could easily still be a FSCS get-out ruse, as many businesses will fail to respond, or file under 'do later' and forget.

Case in point: I once did some work for a guy who hadn't submitted his self-assessment earnings for two financial years and was getting his pants fined off every month. He moaned to me about his nagging wife being on his case about it, way to run a business! Then again, as you'd expect, he over paid me handsomely for my work, so can't complain about him as a person. :D

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It does seem rushed and seems to me like the FSCS is worried about ponying up when the inevitable happens and a bank that is too big to bail finally fails. Looks like his is just an emergency process/hurdle they have instigated to try and take some of the potential liability the FSCS face off the books. No doubt some small businesses will be too busy to process this request within 7 days and will unfortunately find themselves not covered by the FSCS when the SHTF. Result, major savings in deposit cover for a government that can't afford the guarantee anyway.

That would be the worrying aspect - although the email below puts it in a better light.

It sounds to me as if it is rushed by Cater Allen, not by Santander. I have a business account with Santander and received a similar letter around a month ago, so plenty of time to reply.

So Cater Allen may just be useless. Oh well. :D

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It does seem rushed and seems to me like the FSCS is worried about ponying up when the inevitable happens and a bank that is too big to bail finally fails. Looks like his is just an emergency process/hurdle they have instigated to try and take some of the potential liability the FSCS face off the books. No doubt some small businesses will be too busy to process this request within 7 days and will unfortunately find themselves not covered by the FSCS when the SHTF. Result, major savings in deposit cover for a government that can't afford the guarantee anyway.

the FSCS doesnt pony up anything.

the member banks pay it all with annual fees and a call off if required.

My banks havent asked me for any more details due to FSCS changes.

In fact, if they do, they can go fish. I dont have to conform to FSCS regs, the banks do.

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Could someone explain the rules re FSCS and business accounts? is it the standard 50k for businesses too?

Say, for arguments sake a business has 50 staff & their business account provider goes bust a week before the staff are due to be paid. would this mean they wouldn't be able to pay the staffs wages?

to CCC - my business banks with barclays, haven't had any requests for info.

Edited by Reck B

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Got a request yesterday from Cater Allen who I bank with (Part of Santander)

Apparently due to new FSCS regulations they have to get more details of all 'small' businesses that may or may not be covered by the FSCS scheme - in the event of a Bank defaulting. :ph34r:

They required the info by 8 December. 6 days to turnaround. New regulations apparently come in on 31 Dec this year. You can write in or just go online and input basic details of your business turnover etc..

Anyone else business banking with any other banks had this ? Had a look at the FSCS website and could not find any recent news stories or anything.

I am thinking a few possibilities:

(1) FSCS have put out this request with little time to implement. Every bank is rushing to do it before the deadline.

(2) Cater Allen are just behind the curve with this and other Banks have this well in hand.

(3) Something a bit more worrying....

Any thoughts ?

I take it you don't have a facility with them ?

If you did, they'd already know everything about you.

What info did they want ?

p.s. I'm a nosey sod :D

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Could someone explain the rules re FSCS and business accounts? is it the standard 50k for businesses too?

Say, for arguments sake a business has 50 staff & their business account provider goes bust a week before the staff are due to be paid. would this mean they wouldn't be able to pay the staffs wages?

to CCC - my business banks with barclays, haven't had any requests for info.

certainly wont get a payout within the week.

I think there is a definition of what a small business is in the FSCS blurb...big business doesnt get the same cover.

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the FSCS doesnt pony up anything.

the member banks pay it all with annual fees and a call off if required.

My banks havent asked me for any more details due to FSCS changes.

In fact, if they do, they can go fish. I dont have to conform to FSCS regs, the banks do.

Fair enough, however, if a collapse does come to pass I imagine it'll be the taxpayer ponying up to give the banks, or the insolvency administrator's, the money for the call off, i.e. the taxpayer refunding himself. There's certainly not enough money in the system to cover a chain of collapses and that is what is likely to happen if one bank is allowed to go down, because it'll a bank runs all over the shop.

Edited by General Congreve

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Could someone explain the rules re FSCS and business accounts? is it the standard 50k for businesses too?

Say, for arguments sake a business has 50 staff & their business account provider goes bust a week before the staff are due to be paid. would this mean they wouldn't be able to pay the staffs wages?

to CCC - my business banks with barclays, haven't had any requests for info.

Nothing at all ? So just Santander and Cater Allen confirmed so far. I can see a pattern there..:ph34r:

I take it you don't have a facility with them ?

If you did, they'd already know everything about you.

What info did they want ?

p.s. I'm a nosey sod :D

No they wouldn't !! How many people you employ - what your turnover is, value of assets etc...

You don't need that sort of info to open a business bank account. Unless something has changed.

certainly wont get a payout within the week.

I think there is a definition of what a small business is in the FSCS blurb...big business doesnt get the same cover.

Yep - definition of a 'small' business is based on a few simple questions. As mentioned above. Turnover, staff etc..

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Fair enough, however, if a collapse does come to pass I imagine it'll be the taxpayer ponying up to give the banks, or the insolvency administrator's, the money for the call off, i.e. the taxpayer refunding himself. There's certainly not enough money in the system to cover a chain of collapses and that is what is likely to happen if one bank is allowed to go down, because it'll a bank runs all over the shop.

I think the limit is something like 4.3bn in a year for all claims.

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what is a small business...from the FSCS website

A limited company would be treated as having a claim, and hence protection in its own right up to the £50,000 limit, if it fell within the definition of a "small company". A company qualifies as a "small company" under the provisions of section 247 of the Companies Act 1985 (which still applies to any company whose financial year commences before 6 April 2008) if it fulfils two of the following three criteria:

  • it has a turnover of not more than £5.6 million;
  • it has a balance sheet total of not more than £2.8 million; and
  • it has not more than 50 employees.

Similarly, a company qualifies as a "small company" under the provisions of section 382 of the Companies Act 2006 if it fulfils two of the following three criteria:

  • it has a turnover of not more than £6.5 million;
  • it has a balance sheet total of not more than £3.26 million; and
  • it has not more than 50 employees.

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Can I suggest you don't use the links in that email to get to a screen to input your details.

That would be the wise decision. :lol:

Was a letter anyway directing you to their normal site.

All above board just thought it a little strange. And so far it seems that only Banks owned by Santander are requesting this for the apparent deadline.

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  • 311 Brexit, House prices and Summer 2020

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