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Government Guarantee

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Government Guarantee

Strict Australian regulation protects your deposits with LCU.

LCU meets the same strict standards as all Australian banks, building societies and credit unions under the Banking Act with oversight by the Australian Prudential Regulation Authority (APRA).

APRA’s rules on safety and capital apply to all banks, building societies and credit unions to the same high standards.

What is the Financial Claims Scheme (the deposit guarantee)?

The Financial Claims Scheme (FCS) is an Australian Government scheme that provides protection and quick access to deposits in banks, building societies and credit unions in the unlikely event that one of these financial institutions fails.

Under the FCS, certain deposits are protected up to a limit of $250,000 for each account holder at any bank, building society, credit union or other authorised deposit-taking institution (ADI) that is incorporated in Australia and authorised by the Australian Prudential Regulation Authority (APRA).

The FCS can only come into effect if it is activated by the Australian Government when an institution fails. Once activated, the FCS will be administered by the Australian Prudential Regulation Authority (APRA).

In an FCS scenario, APRA would aim to pay the majority of customers their protected deposits under the Scheme within seven calendar days.

For more information Visit the APRA website - Financial Claims Scheme