The Financial Services Compensation Scheme (FSCS) is the UK's
statutory fund of last resort for customers of authorised financial
services firms. This means that FSCS can pay compensation if a firm
is 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.
FSCS covers business conducted by firms authorised by the Financial Services Authority
(FSA), the independent watchdog set up by government to
regulate financial services in the UK and protect the rights of
consumers. European firms (authorised by their home state
regulator) that operate in the UK may also be covered. FSCS
protects:
- deposits;
- insurance policies;
- insurance broking (for business on or after 14 January
2005);
- investment business; and
- mortgage advice and arranging (for business on or after 31
October 2004).
The FSCS operates different levels of compensation according to
the type of investment involved.
Deposits
- £50,000 per person (for claims against firms declared in
default from 7 October 2008).
- 100% of the first £50,000.
Investments
Mortgage advice and arranging
- £50,000 per person (for business conducted on or after 31
October 2004).
Long-term insurance (e.g. pensions and life assurance)
- Protection for 90% of the claim with no upper
limit.
General insurance
- Unlimited.
- Compulsory insurance (e.g. third party motor): 100% of the
claim. Non-compulsory insurance (e.g. home and general): 90%
of the claim with no upper limit.
General insurance advice and arranging
- Unlimited (for business conducted on or after 14 January
2005).
- 100% of the claim. Compulsory insurance is protected in
full.
Firms that went into default prior to 1 January 2010
Please note that all the above limits apply to firms that went
into default on or after the 1st of January 2010. For claims
against firms that went into default prior to this date the old
FSCS limits still apply. The old limits are very similar to those
described above. The FSCS webpage has more details.
Contact the FSCS
Financial Services Compensation
Scheme
7th Floor
Lloyds Chambers
Portsoken
Street
London
E1 8BN
Telephone: 020 7892
7300 or 0800 678 1100
Email: enquiries@fscs.org.uk
Website: www.fscs.org.uk
Publications
Copies of the
following publications are available from the FSCS.
- How we can help
- Claiming compensation
- What to do if you are not happy
- A guide to the different roles of the FSA, FOS and FSCS
