The Financial Claims Scheme (FCS) is one way in
which the Federal Government has responded to the current economic
client.
On 17 October 2008, the FCS, which is designed to enhance the
stability of Australia's financial system, was introduced by
the Federal Government when the following Acts received royal
assent: Financial System Legislation Amendment (Financial
Claims Scheme and Other Measures) Act 2008 (FSLA
Act), Financial Claims Scheme (General Insurers) Levy
Act 2008 (GI Act), and Financial Claims
Scheme (ADIs) Levy Act 2008 (ADIs Act).
The FCS is designed to provide depositors with authorised
deposit taking institutions (ADIs) (this can be a
bank, building society or credit union) timely access to funds when
an ADI is failing or distressed including by introducing a
three-year full guarantee for deposits in ADIs. It is also designed
to provide compensation to eligible policyholders with claims
against a failing general insurer. The FCS also seeks to
