The FSCS is the UK's compensation fund of last resort for customers of authorised financial services firms. We may pay compensation if a firm is unable, or likely to be unable, to pay claims against it. This is usually because it has stopped trading or has been declared in default.
We are independent of the government and the financial industry, and were set up under the Financial Services and Markets Act 2000, becoming operational on 1 December 2001 (although we still cover claims from before this date). We do not charge individual consumers for using our service.
The FSCS covers business conducted by firms authorised by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA), the independent watchdogs 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.
The FSCS protects:
As a fund of last resort there are limits to what the FSCS can do, and to the amounts of compensation the Scheme can pay. Our rules set out the protection FSCS can provide. These form part of the FCA Handbook of rules and guidance, and can be found under Redress, Compensation. The FSCS does not cover the Channel Islands or The Isle of Man.