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Building Societies Investor Protection Scheme |
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Building Societies Investor Protection SchemeA scheme set up to give limited protection to people with share and/or deposit accounts in authorised building societies which fail. Building societies are regulated and supervised by the Financial Services Authority and this scheme was replaced by the Financial Services Compensation Scheme (FSCS) in December 2001. In the case of an authorised building society being wound up there is a provision to pay compensation of 90% of a person's shares and/or deposits up to a set maximum.Similar MatchesInfant industry protectionInfant industry protectionProtection of a newly established domestic industry that is less productive than foreign producers. If productivity will rise with experience enough to pass Mill's and Bastable's tests, there is a second-best argument for protection. The term is very old, but a classic treatment may be found in Baldwin (1969). Second-best argument for protectionSecond-best argument for protection1. Any argument for protection that can be countered by pointing to a different and less distortionary policy that would achieve the same desired result at lower economic cost. 2. An argument for protection to partially correct an existing distortion in the economy when the first-best policy for that purpose is not available. For example, if domestic production generates a positive externality and a production subsidy to internalize it is not available, then a tariff may be second-best optimal. Foreign investment argument for protectionForeign investment argument for protectionThe use of protection to attract FDI from abroad. It does work, since much FDI has been motivated by firms trying to get behind a tariff wall to sell their products. In an otherwise nondistorted economy, however, the cost in terms of more expensive goods is higher than the benefit from additional capital. Noneconomic objectives argument for protectionNoneconomic objectives argument for protectionThe view that a restriction on imports may serve a purpose outside of conventional economic models. Unless that purpose is itself the restriction of trade, then this is a second-best argument, since changes in output, consumption, etc. can be achieved at lower economic cost in other ways. Securities Investor Protection CorporationSecurities Investor Protection CorporationIn the US, a non profit organisation which provides insurance for cash and securities in customer accounts held by approved brokerage firms. Brokers and dealers registered with the Securities and Exchange Commission are obliged to be members of SIPC. In the event that such a firm fails, investors are covered up to a maximum of $500,000 of which no more than $100,000 can be cash. Further SuggestionsTariff protectionhome responsibilities protection Intellectual property protection Domestic distortions argument for protection Effective protection protection applied Safeguards protection Protection Downside Protection Consumer Credit Protection Act of 1968 loan protection policy Labor standards argument for protection Protectionism Exchange rate protection Effective rate of protection Self-sufficiency argument for protection Deposit Protection Scheme Investor Protection Scheme Payment protection insurance Administered protection Nominal rate of protection Actual protection rate Fairness argument for protection Domestic content protection Marine Mammal Protection Act |
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