Consumer Key Facts

What is FSCS?

FSCS is an independent body and was created under the Financial Services and Markets Act 2000 (FSMA). It became operational on 1 December 2001 when FSMA came into force. Our service is free to consumers.

We 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. We describe this as being in default.

What we cover

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).

How we are funded

FSCS is funded by levies on authorised firms.

Where FSCS fits in

If you have a complaint or claim against a firm that is still trading, you should contact that firm directly. If your complaint is not resolved you can contact the Financial Ombudsman Service. If the firm has stopped trading and has insufficient assets to pay your claim, you can contact FSCS.

Limitations of the Scheme

As a fund of last resort there are limits to what FSCS can do and to the amounts of compensation the Scheme can pay.

Questions

If you have any questions about FSCS please look at our Frequently Asked Questions (FAQs) or contact us.