Darling's White Paper leaves charities' funds at risk, says CAF

Treasury's City regulation plans are 'a missed opportunity to help'

The Government's new plans for regulation of the City are a missed opportunity to protect charitable funds, according to the Charities Aid Foundation.

Chancellor Alistair Darling published the Treasury White Paper Reforming Financial Markets on Wednesday, but John Low, chief executive of the Charities Aid Foundation, said charities would still be at risk from bank failures.

Thirty five per cent of the 280 charities previously polled by CAF said they were unclear about the protection given to charity funds by the current Financial Services Compensation Scheme, which provides compensation in the event of banking failures. Only 32 per cent were clear.

"Government should act now and introduce a separate depositor class for charities," said Low. "A recent survey showed that only a third of charities think the Financial Services Compensation Scheme is clear about the protection it offers them."

CAF said it had written to the Chancellor twice about the security of charitable funds but had not received a reply to either letter.

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