Brexit and FSCS protection

The Financial Services Compensation Scheme (FSCS) provides compensation and protection to customers of financial services firms that have failed.

Whether the UK’s exit from the EU affects your FSCS protection will depend on the type of financial services in question and where you and your provider are based. Until the final shape of the deal outlining the UK’s exit from the EU has been agreed by Parliament there are some details that are yet to be finalised.

You can see our Brexit FAQs below. We will update these and add to them as we get more information. So, if you can’t find the answer to your question please check back here later.

 

I’m based in the UK (or EEA) and use a UK bank/building society/credit union. Will FSCS continue to protect my money after Brexit on 29 March 2019?

Yes. UK- or EEA-based customers with UK authorised banks, building societies and credit unions are currently FSCS protected and will continue to be FSCS protected after the UK’s exit from the EU.

I’m based in the UK (or EEA) and use a UK bank/building society/credit union. Will FSCS continue to protect my money after Brexit?

Yes. UK- or EEA-based customers with UK authorised banks, building societies and credit unions are currently FSCS protected and will continue to be FSCS protected after the UK’s exit from the EU.

I’m a UK national based in the EEA who banks with an EEA firm. Will I still be protected after Brexit?

More than likely, although not by FSCS. UK nationals based in the EEA who bank with EEA-authorised firms should not see their deposit protection change – they are currently covered by EEA protection schemes and should continue to be covered by them post-Exit.

Please visit www.efdi.eu/full-members for a full list of EEA protection schemes to check with the relevant one regarding whether you will continue to be protected.

I’m a UK national based in the EEA who banks with an EEA branch of a UK firm. Will I still be protected after Brexit?

If a deal is not reached, when the UK withdraws from the EU the UK will become a ‘third-country’ in relation to the EU. This means that following the UK’s exit, FSCS protection will cease and instead you will be protected by the EEA scheme in that country but only if it protects ‘third country’ branches.

You will need to check with the relevant EEA Scheme whether you are protected. Please visit www.efdi.eu/full-members for a full list of EEA protection schemes.

I’m based in the UK and I’m a customer of an EEA-authorised investment firm here in the UK (i.e., an inbound passported-in EEA investment firm). Will I continue to be protected after Brexit?

Yes, as long as you have a protected claim under FSCS’s rules (e.g. you are an eligible claimant and the investment product is of a type that is protected) and the EEA investment firm has a branch in the UK (or is a certain type of fund manager that is passporting services to the UK but does not have a branch in the UK). UK based customers of such firms are currently protected by the relevant EEA scheme.

If a deal is not reached in relation to the UK’s withdrawal from the EU, FSCS protection will be temporarily extended to eligible customers of these firms through a Temporary Permissions Regime. This is to provide certainty to UK customers.

Will the FSCS deposit protection limit of £85k be affected by or revised after Brexit?

There are no plans to revise the FSCS protection limits.