The depositors’ compensation scheme is being reviewed, Treasury Minister Alfred Cannan has confirmed.

He told the House of Keys that an internal review of the current regulations had concluded that the current scheme needs updating.

An initial consultation document has been issued to get the views of the public, the banking industry and any other interested bodies on ’key overarching policy proposals’, he said.

These will establish a framework for a revised depositors’ compensation scheme and there will be further consultation on revised draft regulations.

The current consultation is open until March 24.

’Treasury would welcome all comments to help shape the future of this important piece of legislation,’ Mr Cannan told MHKs.

Douglas North MHK David Ashford said in the initial consultation it stated that Treasury had reached the conclusion that current levels of compensation remain appropriate .

He asked how that conclusion was reached, when currently the levels of compensation in the island are £50,000 while the UK increased theirs on January 30 to £85,000.

Mr Cannan replied: ’All relevant points, and exactly why we are undertaking a proper review.’