Deposit insurance United Kingdom

 

 


The Financial Services Compensation Scheme is a "statutory fund of last resort" in the United Kingdom, set up under the Financial Services and Markets Act 2000 to compensate customers of "authorised financial services firms" in the event of their insolvency. It consolidated previous compensation schemes into one combined scheme. The scheme covers deposits, insurance policies, insurance brokering, investments, mortgages and mortgage arrangement.

 

Country Savings limit Coverage Valid since Deposit insurance organization Comments and previous amounts
United Kingdom GBP 50,000 100% October 7, 2008 Financial Services Compensation Scheme Amount raised from 35,000 to GBP 50,000 effective October 7, 2008. Before October 1, 2007 coverage was 100% of the first GBP 2,000 and 90% between 2,000 and GBP 35,000

 

 

 

The FSCS is the compensation fund of last resort for customers of authorised financial services firms. If a firm becomes insolvent or ceases trading we may be able to pay compensation to its customers

How to check you’re covered

The Financial Services Compensation Scheme (FSCS) is the official body that can pay you compensation if your financial services provider fails – known as being ‘in default’. In simple terms, that means we can pay you compensation if your financial services provider or advisor goes into default and you lose money as a result.

Limits apply to how much compensation we may be able to pay, and those limits vary between different types of financial products. For us to pay you compensation, your provider must be authorised by the Financial Services Authority (FSA).

The FSCS is an independent body set up by government under the Financial Services and Markets Act 2000. Financial services providers fund the FSCS and the compensation we pay.

This simple three-step guide explains the protection that the FSCS can provide for your money, and what limits apply to the compensation we can pay. It’s good to check that your money is covered now so that you know in advance what would happen in the unlikely event that something goes wrong with your financial services provider. Some examples of financial services providers are banks, building societies, credit unions, insurance providers and independent financial advisors.

The information in this guide provides a broad overview of the scope of FSCS’s protection. You should still talk to your financial services provider(s) or advisor to discuss FSCS coverage in relation to your specific products and services.

Click on below link to check you’re covered. http://fscs.org.uk/

 

 

Compensation limits

  Percentages Maximum Compensation
Deposits 100% of the first £85,000 per person per firm

(for claims against firms declared in default from 31 December 2010). 100% of the first £50,000 per person per firm (for claims against firms declared in default from 7 October 2008).

£85,000
Investments 100% of the first £50,000 per person per firm

(for claims against firms declared in default from 1 January 2010).

£50,000
Mortgage advice and arranging 100% of the first £50,000 per person per firm

(for claims against firms declared in default from 1 January 2010).

£50,000
Insurance Business

(e.g. pensions, life assurance, home and travel)

90% of the claim with no upper limit. Compulsory insurance is protected in full. Unlimited
General insurance advice and arranging

(for business conducted on or after 14 January 2005).

90% of the claim with no upper limit. Compulsory insurance is protected in full. Unlimited

 

 

 

 


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