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What is the FSCS?
The Financial Services Compensation Scheme, or FSCS, is the UK’s official compensation scheme for customers of authorised financial firms. It exists to protect you if a bank, building society, insurer, investment firm or other regulated financial business fails.
If a firm goes bust and cannot return your money or meet its obligations, the FSCS may step in to pay compensation. It is funded by the financial services industry, not by individual customers.
The FSCS is there as a safety net. It does not cover every financial product, but it can provide important protection for eligible claims.
What can the FSCS cover?
The FSCS may cover bank deposits, insurance claims, investments, mortgages, pensions and certain debt management or financial advice issues. The exact protection depends on the type of product and the circumstances of the firm’s failure.
For bank and building society deposits, the current limit is usually up to £85,000 per person, per authorised firm. For joint accounts, the limit is typically £170,000 in total, as each account holder is protected separately.
Investment and insurance claims can have different limits and rules. It is worth checking the FSCS website to see whether your specific product is covered before you make a claim.
Who can claim compensation?
You may be able to claim if you were a customer of a UK-authorised firm that has failed or is unable to pay. This includes individuals, some businesses and, in certain cases, charities or small partnerships.
You do not usually need to pay a fee to make a claim. In many cases, the FSCS will contact eligible customers directly once a firm has been declared in default.
If you are unsure whether you qualify, you can search for the firm on the FSCS website. This will help you check if the business is protected and whether a claim is possible.
How do I claim compensation?
Start by gathering your account details, policy documents, statements and any letters from the failed firm. These documents can help prove what you were owed and speed up the process.
You can make a claim online through the FSCS website. The form will ask for details about the firm, the product and your contact information, and you may need to upload supporting evidence.
After you submit your claim, the FSCS will review it and tell you if you are eligible. If it agrees to pay compensation, the money is usually sent directly to you.
What should I do if a firm fails?
If you think a financial firm has collapsed, act quickly but do not panic. Check whether it is authorised by the Financial Conduct Authority or Prudential Regulation Authority, and then look up the firm on the FSCS website.
Keep all emails, letters and statements safe, and avoid making payments or sharing personal details unless you are sure the request is genuine. If you have money with a bank or building society, you may also want to spread larger balances across different authorised firms to reduce risk.
The FSCS is an important backstop, but it is not a substitute for checking a firm’s status before you invest or open an account.
Frequently Asked Questions
FSCS compensation claim is a request for compensation through the Financial Services Compensation Scheme when an authorised financial firm fails and cannot return your money or assets. The FSCS may pay compensation up to certain limits depending on the type of product and the circumstances of the claim.
You may be eligible for FSCS compensation claim if the firm was authorised by the Financial Conduct Authority or Prudential Regulation Authority, the firm has failed or is unable to pay, and your loss is covered by the FSCS rules. Eligibility depends on the product, the timing of the failure, and your status as an individual or business.
FSCS compensation claim may cover deposits, investments, insurance, pensions, mortgages, and certain forms of financial advice or intermediation. Coverage depends on whether the product and the firm fall within FSCS protection rules.
The amount payable in FSCS compensation claim depends on the product type. For eligible deposits, the limit is usually up to 85,000 pounds per person per bank or building society, while other categories may have different limits. Check the current FSCS limits for the relevant product.
To make an FSCS compensation claim, you usually complete an online claim form or follow FSCS instructions after the firm fails. You may need to provide personal details, account information, evidence of your loss, and any documents showing what you held with the firm.
The time for an FSCS compensation claim varies by case complexity, the type of product, and how quickly information can be verified. Some claims are paid within weeks, while others may take months if records are incomplete or the failure is complex.
For an FSCS compensation claim, you may need statements, contracts, policy documents, account numbers, payment records, identification, and any correspondence with the failed firm. The FSCS may ask for additional evidence if needed to assess your claim.
Usually, FSCS compensation claim is available only when the firm is unable to pay or is declared in default by the FSCS. If the firm is still operating, you may need to complain to the firm first and use the Financial Ombudsman Service if appropriate.
Yes, joint accounts can be included in FSCS compensation claim, but the compensation limit is generally applied to each eligible account holder separately. This means each person may be protected up to the relevant limit for their share, subject to FSCS rules.
FSCS compensation claim may cover investment losses only in specific situations, such as when a regulated firm has failed and the loss is eligible under FSCS rules. It does not normally cover losses caused simply by market movements or poor investment performance.
FSCS compensation claim can cover some pension-related losses, especially where a regulated firm has failed and the activity falls within FSCS protection. The level of protection depends on the pension type, the firm involved, and whether the loss is attributable to a protected activity.
Yes, some businesses can make FSCS compensation claim if they meet the eligibility criteria and the product is covered. Protection limits and eligibility can differ for companies, partnerships, and charities compared with individual consumers.
After you submit an FSCS compensation claim, the FSCS reviews the information, checks the firm’s status, and verifies whether the claim is covered. If accepted, payment is usually made directly to you or to your account, depending on the case.
Yes, if your FSCS compensation claim is rejected, you can ask the FSCS to review the decision if you have new information or believe an error was made. You may also seek independent advice about any further options if you disagree with the outcome.
Yes, an FSCS compensation claim is free to make. The FSCS does not charge consumers for submitting a claim, and you should be cautious if a third party asks for a fee to handle your claim.
No, you do not usually need a solicitor or claims company to make an FSCS compensation claim. Most people can submit a claim directly to the FSCS themselves using the information and documents they already have.
Yes, FSCS compensation claim can cover eligible deposits held with a failed bank or building society that is protected by the scheme. The standard deposit protection limit is usually applied per eligible person, per authorised institution.
Yes, you can still make an FSCS compensation claim if you previously complained to the firm. If the firm has failed or is unable to respond, the FSCS may step in to assess and pay eligible claims.
If you cannot find records for FSCS compensation claim, contact the FSCS and provide any information you do have, such as the firm’s name, account numbers, dates, and approximate amounts. The FSCS may be able to verify details using its own records or request further evidence.
To check the status of FSCS compensation claim, you should use the contact details or online portal provided by the FSCS after submission. You may need your claim reference number and personal details to receive updates on progress.
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