Eligibility rules

To qualify for compensation you must be eligible under our rules. These rules are outlined in the FCA Handbook and in the PRA Rulebook on Depositor Protection and Policyholder Protection.

They detail which types of claim are eligible for compensation, and describe how much compensation we are allowed to pay. We must abide by these rules at all times.

Who is eligible?

  • We can pay compensation only when an authorised firm is in default. We will carry out an investigation to establish whether or not this is the case.
  • We can pay compensation only for financial loss and there are limits to the amounts of compensation we can pay
  • Private individuals are generally protected. However, other types of claimants, such as businesses and charities, may be eligible depending on the type of claim.  
  • The FSCS does not cover firms based in the Channel Islands or the Isle of Man, although there are some exceptions to this for insurance claims.

Useful links


The Financial Ombudsman Service is the official independent expert in settling complaints between consumers and financial businesses

Jargon Buster

Authorised firm

a company, unincorporated body, partnership or individual permitted to carry out a regulated activity by the FCA or the PRA. This term includes a mutual (unincorporated) organisation, for example a friendly society.


qualifying for compensation under Scheme rules.


The Financial Conduct Authority is the UK's regulator for the financial services industry. 

In default

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.