To qualify for compensation you must be eligible under our rules. These rules are outlined in the FCA and the PRA Handbook.
They detail which types of claim are eligible for compensation, and describe how much compensation we are allowed to pay. We must abide by these rules at all times.
The main points are:
- We can pay compensation only when an authorised firm is in default. We will carry out an investigation to establish whether or not this is the case.
- We can pay compensation only for financial loss and there are limits to the amounts of compensation we can pay.
- The FSCS was set up mainly to assist private individuals, although smaller businesses and smaller charities are also covered.
- Larger businesses and larger charities are generally excluded, although there are some exceptions to this for deposit and insurance claims.
- The FSCS does not cover firms based in the Channel Islands or the Isle of Man.