The FSA has published a consultation paper looking at the implications of non-EEA national depositor preference regimes which prioritise the claims of home-country depositors over those of depositors outside the home country if a firm becomes insolvent.

The proposed new FSA rules would prohibit firms from non-EEA  countries that operate such regimes from accepting deposits through a UK branch, unless measures are introduced to eliminate the disadvantage to UK depositors caused by the subordination of their claims in favour of home country depositors.

It is intended that the new rules will be in place by January 2013, with a compliance deadline of January 2015.