Compensation rules and eligibility
You can claim compensation from FSCS if a financial firm has failed and all of the following apply: the firm was authorised, it carried out a regulated activity for you, you lost money, and it owes you a legal liability.
These rules are set by UK regulators and determine who can claim compensation and when a claim is eligible.
This page was last reviewed 4 June 2026.
Eligibility at a glance
- The firm has failed and cannot pay claims (this is called being “in default”).
- The firm was authorised by the FCA or PRA when you used it.
- The firm carried out a regulated financial activity for you (a financial service supervised by the FCA or PRA).
- You have suffered a financial loss.
- The firm owes you a legal liability (for example, where the firm gave negligent advice or broke FCA rules).
- The firm has not failed.
- The activity was not regulated.
- You have not lost money.
- The firm does not owe you a legal liability.
How eligibility is decided
- Who can receive compensation.
- Which firms are covered.
- Which activities and products are protected.
- How eligibility is assessed.
Who can claim
We can consider claims from:- Individuals
- Some charities
- Certain trustees
- Smaller businesses
Large businesses are usually excluded, although there are some exceptions for deposits and insurance.
Important limitations
- Not all financial products and services are protected
- You may need to complain to another firm first if we think they are responsible
- We assess every claim individually.
If you are not eligible, we will explain why and may direct you to other organisations that can help.
Frequently asked questions
Dates regarding historical claims
- For investment claims, if a claim relates to business conducted before 28 August 1988, we are unlikely to be able to help. This is the date when these activities were first protected by an investor compensation scheme in the UK.
- For mortgage advice and arranging, we will only be able to help if a claim relates to business conducted on or after 31 October 2004. These activities were not protected by FSCS before this date.
- For claims relating to insurance intermediaries, we will only be able to help if a claim relates to business conducted on or after 14 January 2005. These activities were not protected by FSCS before this date. If a claim relates to travel insurance where the policy is sold alongside a holiday or other related travel, we will only be able to help if the claim relates to business conducted on or after 1 January 2009.
- Slightly different rules apply for claims against an insurer or a bank that was insolvent before FSCS became operational (1 December 2001), or for claims against an investment firm that was declared in default before FSCS became operational. These claims are covered by the rules governing the separate compensation schemes that existed before that date.
- FSCS will handle the claim. FSCS became the single compensation scheme on 1 December 2001, replacing former schemes.
Check your money is protected
Use our bank and savings protection checker to find out whether your money is FSCS protected. Simply enter a few details and we’ll tell you how much of your money may qualify for FSCS protection if your provider went out of business, or what other steps you need to take to check this.
You can also check the FCA’s Financial Services Register. The Financial Services Register will give you more information about the financial firm you’re using and what they are regulated to do.
When you are considering a financial product, the provider should be able to tell you if it qualifies for FSCS protection.
Pension protection guide
Bank & savings protection checker
See how much of your bank, building society or credit union account is protected.