Eligibility and Claims Process

To qualify for compensation investors need to be eligible under our rules, which are made by the FCA and the PRA. We have a duty to our levy payers to ensure that we only pay compensation for eligible claims.

For investment claims FSCS provides protection, for example:

  • for loss arising from bad investment advice, poor investment management or misrepresentation
  • when an authorised investment firm goes out of business and cannot return investments or money

Investments covered include: stocks and shares; unit trusts; futures and options; personal pension plans; and long-term investments such as mortgage endowments.

FSCS conducts a full review of each claim to make sure it is eligible for compensation. For example, for negligence claims we will establish whether bad advice has been given and calculate whether the consumer has made a financial loss. If the advice is not found to have been unsuitable, or if no loss has been suffered, no compensation can be paid.

This work involves liaison with third parties, such as product providers and formerly authorised firms, to enable us to look at client files and other information relevant to determining whether a claim is eligible for compensation.

We also follow guidance provided by the regulator where applicable, for example in considering pensions review and mortgage endowment claims, and we liaise with the FOS on their approach to handling claims. The work of our claims teams is reviewed by our Quality Programme Unit.

To claim compensation investors need to fill in and return an application form that we send to them. We also need to see any papers the firm sent the investor about the investments.

Compensation limits

For claims against investment firms, FSCS can pay up to £50,000 in compensation per person per firm.

How to claim

About the FSCS

Click here to find out more about the FSCS, its role, its operations and its personnel.


The Financial Conduct Authority website includes a searchable database of all firms authorised and regulated by the FCA and the Prudential Regulation Authority (PRA).


The Financial Ombudsman Service is the official independent expert in settling complaints between consumers and financial businesses

Jargon Buster

  • Eligible

    qualifying for compensation under Scheme rules.
  • FCA

    The Financial Conduct Authority is the UK's regulator for the financial services industry. 

  • FOS

    Financial Ombudsman Service, for complaints or claims against firms that are still trading.
  • Investment

    a financial product in which money can be invested to earn interest or profit (although the value of investments can go down as well as up).
  • Pensions Review

    a review to assess financial loss for those people wrongly sold personal pensions between 29 April 1988 and 30 June 1994. Mis-selling occurred when people who would have been financially better off at retirement in their employer's pension scheme were advised to leave or not to join their employer's pension scheme, or where they transferred pension benefits from a previous employer's scheme and took out a personal pension plan instead.