Financial Services Compensation Scheme
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.
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.
Compensation limits
|
Percentages |
Maximum Compensation |
Deposit insurance |
100% of the first £50,000 per person per firm
(for claims against firms declared in default from 7
October 2008). |
£50,000 |
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 |
The limit for bank based deposits will increase to 100,000
euros with effect from January 2011
External
links
-
Website: Financial Services
Compensation Scheme http://www.fscs.org.uk/
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