FSCS publishes its 2019/20 Annual Report and Class Statements
The Financial Services Compensation Scheme (FSCS) helped over 258,000 customers to get their lives, families and businesses back on track during 2019/20.
In its Annual Report and Accounts and Class Statements published today (9 July 2020), FSCS outlines the vital work it carried out during the last financial year. FSCS provides a trusted compensation service for consumers, which also helps raise public confidence in the financial services industry.
- FSCS continued to assess claims fairly and efficiently, driving outstanding customer experience. The dedication of FSCS staff led to a customer satisfaction score of 79%.
- 98% of customers who came directly to FSCS did so using our online claims service, therefore receiving 100% of the compensation they were owed.
- FSCS worked hard to ensure the level of consumer awareness of the scheme continued to rise, achieving 80% awareness of FSCS or a compensation scheme during the year.
- FSCS paid a total of £527m in compensation to customers from levies raised on just over 49,000 regulated financial services firms.
- Through savings and efficiencies, FSCS achieved an eight per cent reduction in like-for-like claims handling costs, which helped to deliver more value for money for levy payers.
FSCS works hard to reduce levies by pursuing recoveries from the estates of failed financial services firms. Last year FSCS recovered over £50m from 88 estates to either offset levies or return to the industry. FSCS does this by looking to recover money where reasonably possible and cost-effective, claiming from the estates of failed firms as part of the insolvency process, and against professional indemnity insurers. FSCS may also seek to recover money from other third parties who contributed to customers’ losses.
FSCS put its data, insights and experience to good use by identifying over 100 potential phoenixing cases and referring them to the FCA. Because of these referrals, at least seven firms withdrew their applications for FCA authorisation.
This work is important to the financial services sector: for both consumers, who are protected from harm and the industry who pay the levy.
Caroline Rainbird, FSCS’s Chief Executive, said: “It is now just over a year since I joined FSCS and I want to pay tribute to my colleagues, for making sure that we put customers, levy payers and key stakeholders at the heart of everything we do. Their dedication and commitment have been, and continue to be, particularly evident during the coronavirus pandemic, which is a difficult and troubling time for us all.
“We have not lost a single day’s work since we went into lockdown in mid-March and this is an outstanding testament to the resilience of our staff and partners to continue to deliver business as usual.
“In 2019/20, FSCS helped over 258,000 customers who had suffered losses from 874 failed financial services firms, including some 137 firms which failed this year. It is vital we recognise that FSCS was only able to pay compensation because of the firms who paid our levy, together with the money that was recovered by FSCS.
“It is crucial that we continue to work with the industry to do what we can to help reduce compensation costs and avoid financial harm to consumers. We will continue to work with our stakeholders to make sure that we provide a trusted, fair and efficient compensation service that helps to build trust and confidence in the UK’s financial services industry.”
FSCS’s Annual Report and Accounts and Class Statements are available to download as pdfs from the Annual Report page.
James Tweed - t: 020 7375 8646
Catherine Goodier - t: 020 7375 8631
Notes for editors
Read more about the remit of FSCS on our Notes for editors page.