FSCS protects consumers when financial services firms fail [or go bust]. It’s the compensation scheme for customers of UK authorised financial services firms. Since 2001 we’ve helped millions of people and paid out billions of pounds.
We can compensate customers if a firm has stopped trading or does not have enough assets to pay claims made against it. We call this being ‘in default’.
To find out if a firm is already in default, visit our search for companies in default page. You can still make a claim if the firm is not listed.
What do we cover?
We cover business conducted by firms authorised by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA).
The FCA and the PRA are the UK’s independent financial watchdogs set up by government to regulate UK financial services and protect consumers’ rights. We may cover European firms authorised by home state regulators working in the UK.
FSCS protects the following:
- investment business,
- home finance (for business from 31 October 2004),
- insurance policies, and
- insurance broking for business from 14 January 2005. We also protect connected travel insurance where companies such as travel firms and holiday providers sell the policy alongside a holiday or other related travel for business from 1 January 2009.
- debt management.
The Scheme was set up under the Financial Services and Markets Act 2000 and became active on 1 December 2001. We still cover claims from before this date.
FSCS is free to consumers and is independent of government and the financial industry.
Are there protection limits?
The FCA and the PRA govern our protection and set our compensation limits and rules. The PRA’s rules cover claims related to deposits and life and general insurance policies. These rules are in the Depositor Protection and Policyholder Protection sections of the PRA Rulebook.
The FCA’s rules cover claims related to the other types of business we have mentioned above and can be found in the Redress section of the FCA Handbook.
FSCS does not cover the Channel Islands or The Isle of Man, although some exceptions exist for insurance claims.
money placed in a bank or similar institution to earn interest or for safe-keeping.
The Financial Conduct Authority is the UK's regulator for the financial services industry.
A firm unable, or likely to be unable to pay claims against it. This will generally be because it has stopped trading and has insufficient assets to meet claims, or is in insolvency.
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).