The Banking Act 2009 includes a number of improvements in the operation of the FSCS, primarily aimed at a swifter payout of compensation to depositors. These include:
■ A new insolvency procedure for banks to ensure that depositors who are eligible for compensation under the FSCS receive prompt payment or have their accounts transferred to another financial institution whilst also providing for the winding up of the affairs of a failed bank in the interests of its creditors as a whole;
■ The FSA being able to collect information from a firm (and to share it with the FSCS) before default, so that the adequacy of a firm's systems to provide information to assess whether a payout is practical, and to prepare for compensation payments to be made, should a firm fail;
■ The FSCS being able to make payments to depositors based on the records of a bank;
■ The FSCS having access to immediate liquidity through borrowing from the National Loans Fund;
■ The inclusion of powers that would allow the introduction of pre-funding of the FSCS if it was considered appropriate to do so in the future.