FSCS announces higher protection limits of £85,000 for some products and services

People in the UK have even more financial protection than before from today (Monday 1 April).

The Financial Services Compensation Scheme (FSCS) limit has been raised to £85,000 for more of the financial products it covers. This follows an FCA consultation on FSCS’s funding arrangements.

As well as protecting deposits up to £85,000 in banks, building societies and credit unions, the higher FSCS limits cover investments, mortgage advice, life and pensions advice, debt management and long-term care insurance.

Here is the full list of products to which the new limits apply:

  • Investment provision is now £85,000 per person per firm, up from £50,000.
  • Investment intermediation is now £85,000 per person per firm, up from £50,000.
  • Home finance intermediation is now £85,000 per person per firm, up from £50,000.
  • Life and pensions intermediation is now £85,000 per person per firm, up from £50,000.
  • Debt management is now £85,000 per person per firm, up from £50,000.
  • Long-term care insurance is now 100% of the claim per person per firm, up from £50,000.

Customers of firms that are declared to have failed (in default) before 1 April 2019 will be covered up to the previous £50,000 limits. The new limits apply to claims against firms that fail on or after 1 April 2019.

Mark Neale, FSCS Chief Executive, says:

“Increasing our limits for the wide range of products and services that we cover further strengthens financial confidence and means people will have protection for more of their money.

“People can be assured that if they lose money as a result of the failure of their investment provider or adviser, their mortgage adviser, their debt management provider, or their long-term care insurer, FSCS can now provide a higher level of protection.”


Media enquiries

James Tweed

T: 020 7375 8646

Anthony Ozimic

T: 020 7375 8638

E: publicrelations@fscs.org.uk


Notes for Editors

FSCS is the UK's statutory compensation scheme for customers of authorised financial services firms. It was set up by Government in 2001 and is funded by the financial services industry. FSCS protects deposits, investment business, home finance (mortgage) advice, general insurance, insurance broking and debt management. FSCS can pay for financial loss if a firm is unable, or likely to be unable, to pay claims against it. The following limits apply:

  • Deposits: £85,000 per person per authorised deposit-taker (for claims against firms declared in default from 30 January 2017). For more details visit our Deposit Limits
  • Investments and home finance: £85,000 per person per firm (for claims against firms declared in default from 1 April 2019). For more details visit our Investment Limits and Home Finance Limits
  • General insurance advice and arranging claims: 90% of the claim is protected with no upper limit. Compulsory insurance is 100% (for business conducted on or after 14 January 2005). For more details visit our Insurance Limits
  • Debt management: £85,000 per person per firm (for claims against firms declared in default from 1 April 2019). For more details visit our Debt Management

FSCS is an independent body, set up under the Financial Services and Markets Act 2000 (FSMA), and does not charge individual consumers for using its services. 

Declaring a firm in default

Before FSCS can pay compensation, it must be satisfied that a firm does not have sufficient assets to meet claims. It describes this as being ‘in default’. The Scheme will declare a firm in default if:

  • it has received at least one claim; and
  • it is satisfied that the firm is unable (or likely to be unable) to pay claims against it.

FSCS is required to do this before it can pay compensation to eligible claimants.

Declaring a firm in default allows consumers who believe they may have lost money as a result of their dealings with that firm to apply to the Scheme. 


Authorised firms

Dealing with a Financial Conduct Authority (FCA) or Prudential Regulation Authority (PRA) authorised firm gives consumers access to the Financial Ombudsman Service (FOS) and FSCS. Consumers can check that the firm they are dealing with is authorised by using the FCA’s Financial Services Register found here: http://www.fca.org.uk/firms/systems-reporting/register


Broadcast media

An ISDN line is available if you are interested in arranging a radio interview with FSCS’s CEO. Please get in touch with our public relations team at publicrelations@fscs.org.uk to arrange a suitable time and date.