The industry regulator, the Financial Services Authority has ordered banks and building societies to bolster their reserves to build up their financial strength. The FSA recently undertook a review and found that some organisations could struggle if there were to be a significant shift in the markets.
Top Tip from -
In the event of insolvency of a bank you should be entitled to compensation from the Financial Services Compensation Scheme. The amount you get back should be 100% of the first £2,000 and 90% of next £33,000 (maximum £31,700). Bear the state of the markets in mind when investing and make sure you never have more than the relevant compensation amount with one institution.