Depositor Compensation Scheme publishes first funding strategy, SoFA, for 2025 implementation.

The Depositor Compensation Scheme (DCS) has published its first funding strategy, the Statement of Funding Approach (SoFA), as a crucial step towards implementing DCS in mid-2025. The SoFA provides a five-year cost estimate and funding strategy for the DCS, aiming to protect eligible depositors in case of deposit taker failure. The strategy sets a target fund size of 0.8% of protected deposits and uses international practice to predict a consistent, forward path of levies.