“The incentives toward risk taking remain essentially unchanged from pre-crisis times….Over time I suspect the industry will be treated like and eventually become public utilities”
FDIC Vice Chairman Thomas hoeing on the failure of regulation to eliminate the systemic risk in the banking System, April 2013.
If you are looking for the single most effective addition to your business or personal banking then it must be Crisis Deposit Assurance. CDA is a contract that is used to provide capital guarantees to cash deposits without the usual bank risks or the expense of a normal insurance type contract. There is a full capital guarantee from the outset and the initial charge is recouped over the first 12 months by way of a guaranteed Minimum return credited to your account on a daily basis.
Crisis Deposit Assurance is not designed to replace your current banking arrangements and is certainly not a suitable alternative to a current account. However for medium term cash deposits it’s now looked upon as almost mandatory in providing Certainty with Security by ‘annexing’ part of your banking.
Governments offer a limited amount of deposit protection to individuals but Corporations and Trustees etc. do not usually benefit from any deposit protection at all. They, and individual depositors with large amounts, are expected to organise their own system of security and this can normally only be achieved by opening multiple accounts with different financial institutions to spread the risk.
Diversification will not provide the safeguards or guarantees that are necessary, and the reality is that in these increasingly difficult times Crisis Deposit Assurance has now become the only way for larger depositors to fully safeguard their deposits. As a result of this it is rapidly gaining momentum throughout Europe and is considered the single best practice for holding medium term cash deposits.
In a nutshell:
For companies, trusts, provident funds, pension funds and individuals, it is easy to see why cash deposits should be held in CDA. If you are a company director or CFO then you would find it refreshingly easy to justify why you use this method to manage your cash deposits.
For Trustees (particularly of Provident Funds) it provides you with diversification and safety you are expected to provide to protect against Bank Bail Ins & Collapse.
If you are a Corporate services provider, Crisis Deposit Assurance is something you will be increasingly asked for and is a ‘bolt on’ to any services you provide. You should certainly be making sure that you are the first to offer it to your existing clients as well as using it to attract new clients.If you are a family office looking after clients wealth then it is an essential part of their overall ‘portfolio’ and should feature in any financial planning.
We believe the financial crisis is far from over and if you are responsible for any cash management it makes absolute sense to contact FTA now to discuss Crisis Deposit Assurance:
Crisis Deposit Assurance is available to clients throughout Europe, the Middle East & Russia with the minimum deposit being €250,000. It is underwritten by a major Insurer with a history exceeding 150 years. FTA do not handle clients money.
Contact FTA now:[contact_form lang=en]