That's a massive jump and possibly more Brexit gamesmanship
Alongside the EU, the UK financial regulator sets a compensation amount for people who lose money when firms go bust, say a bank. The limit used to be £85k but that was revised down in the 5 yearly review. The lower amount was due to an adjustment in the currency vs the EU limit set.
Not they've announced they are looking into raising it to £1m. That is a huge jump and well way up and beyond what would be on offer in Europe. If it fully encompasses foreign investors then that's a big insurance for folks who park their money over here.
Here's the reasons;
FCA want the scheme to better reflect risks
Wants to widen scope of scheme in asset management
Wants to include Lloyds of London in a retail scheme
Scheme must not be first line of defence
