Wealthier divorcees who find themselves with large sums in their bank accounts following settlements will be protected in the event of bank failure under new EU regulations.
Currently only the first £85,000 in accounts are guaranteed by the government if the bank should fail for any reason. Under the recently agreed EU regulation, deposits of up to £500,000 will be protected, the Daily Mail reports. However, the protection will only apply if the bank account holders can show the money is a “short term” balance, resulting from such one-off events as a divorce settlement or house sale.
According to the paper, the scheme could enter English law around 2015.