Frequently Asked Questions
Regulatory Information - Financial Services Compensation Scheme (FSCS)
The Financial Services Compensation Scheme (FSCS) is the UK's statutory compensation scheme for customers of authorised financial services firms. This means that the FSCS provides compensation if a company ceases trading and is unable, or likely to be unable, to pay claims against it.
FSCS is a non profit independent body, set up under the Financial Services and Markets Act 2000 (FSMA). Is it funded by a levy on "authorised financial services firms". The FSCS is free to consumers and, since 2001, has paid out more than £26 billion to more than 4.5 million people. It covers insurance policies, insurance brokering, deposits, mortgages and mortgage arrangement and investments.
It is worth noting that this facility is available only when a firm is regulated by the UK’s financial watchdog the FCA. Back