UK Financial Services Compensation Scheme (FSCS)

The scope of the Financial Services Compensation Scheme covers FCA/PRA authorised businesses

Organization Profile

The full English name of FSCS is the Financial Services Compensation Scheme, the UK Financial Services Compensation Scheme.
When a company is unable to pay its due debts, the FSCS can be activated to compensate customers. FSCS coverage is for companies regulated by the FCA and PRA, but also for EU companies operating in the UK.
FSCS is to help individuals and small businesses, generally excluding large businesses (except in special circumstances).

Claim Process

FSCS encourages applicants to submit claims online through a simple and fast way.
Submit a claim online at:
Online claim submission process:
Step 1 Prepare all required documents for claiming
FSCS is unable to process claims and has difficulty obtaining company records on behalf of applicants until it has received the information required for the claim.
Claim all required information:
1. Identification information; such as: ID card, passport, driver's license, EU passport;
2. Financial products and proposal documents: financial product proposals and historical transaction records from the company must be submitted, and account application forms and customer consent forms can be submitted at the same time;
3. The applicant's bank information, so that the compensation can be sent to the applicant later.
NOTE: All legible scanned copies are accepted;
Step 2 Submit a claim
1. Confirm whether the applicant can make a claim;
2. Create an FSCS claim account, which is convenient for applicants to submit claim materials and check the progress of claims;
3. Answer the questions and complete the claim application; the questions include why to apply for a claim, upload the required information for the claim, and sign the electronic version of the claim application.
If the applicant successfully submits the claim, FSCS will send an email to inform the applicant that the claim has been received.

Limits of compensation

UK FSCS has indemnity limits for various types of financial activities, as follows:
Savings business: £85,000/person/company
Note: From 3 July 2015, the FSCS provides protection for short-term high value deposits with banks, building societies and credit unions of £1m.
Investment business: £50,000/person/company
Housing finance business (e.g. mortgages and arrangements): £50,000/person/company
Insurance business: no upper limit; long-term insurance: 100% compensation; compulsory insurance, professional insurance and injury, disease insurance: 100% compensation; other insurance: 90% compensation, no upper limit
General Insurance Advice and Arrangement: 90% indemnity, no limit

Claim Processing Time

UK FSCS has different processing times for different financial product businesses, as follows:
Bank, construction industry, credit union savings business: 7-20 working days
Other businesses (including investment firms, insurance companies, mortgages): within 6 months


1. What is FSCS?
The full name of FSCS in English is the Financial Services Compensation Scheme, which is translated as the British Financial Services Compensation Scheme and is known as the "last rescue fund" for British companies.
The FSCS is an independent body established under the Financial Services and Markets Act 2000. It is responsible for indemnification of insolvent companies regulated by the FCA and the PRA (Prudential Regulation Authority).
If a financial firm cannot or is likely to be unable to pay compensation, the FSCS compensates the clients of those financial firms.
FSCS is independent from FOS, which handles disputes or complaints between operating companies and their customers.
FSCS provides free services to individual customers.
2. How do we know if a company is covered by FSCS compensation?
It can be confirmed in the following 2 ways:
1. FCA's inquiry website:
2. Call FCA: 0800111 6768
3. What if we have a complaint against a company that is still operating?
A: First you should contact the company directly. If you are not satisfied with the company's response, you can contact the UK FOS.
4. How does FSCS confirm whether it can help customers solve the compensation problem?
Answer: Confirmed by the type of financial product and the amount of compensation. First, FSCS confirms whether the company is regulated, and then looks at the type of financial product.
5. Does FSCS charge a fee?
A: There is no charge. FSCS is a not-for-profit and independent organisation established under the FSMA. FSCS does not charge individuals a fee. If you see someone representing FSCS and asking for a fee, be cautious.
6. How long does it take for FSCS to process compensation?
A: It depends on the type of compensation. Compensation for savings businesses is usually 7-20 business days; compensation for other businesses (such as investment firms, insurance brokers and mortgage brokers) is within 6 months.
7. Why is there a limit on compensation?
A: The FSCS regulations dictate what types of claims are eligible for compensation and limit how much compensation we can pay. The protection that FSCS can provide is limited.
Compensation is provided if you suffer financial loss from investing under a UK regulated company. FSCS can only compensate for economic losses. For example, compensation paid for investment claims takes into account your financial situation, assuming you did not invest.
8. Does the FSCS compensation include the profits the company promises to customers?
A: Not included. FSCS only pays compensation for economic loss. FSCS is not responsible for promised profits etc.
9. If a company goes bankrupt before FSCS takes over compensation matters, will the client be compensated?
Answer: No. The current FSCS regulations apply only after the FSCS takes over the indemnity matter and are not responsible for the situation before that.
10. Why is a company no longer operating but FSCS is told it cannot help with claims?
A: There is a good chance that the company has assets to satisfy your claim. If the company is still operating, you should contact the company as soon as possible to file a claim; if the claim fails, you can seek legal advice or contact the Citizens Advice Bureau. UK FOS has the potential to help you meet your claim.
11. Who is eligible to file a claim with FSCS? Is it okay for a company or charity?
A: Generally, individuals are eligible to make all types of claims. However, there are stricter rules governing the types of claims that businesses, charities, etc. can make.
Once a company becomes insolvent or defaults, the FSCS determines eligibility and will look at the relevant rules for different types of claims (eg investments, deposits, insurance). Even if the individual is eligible for compensation, the applicant must file a claim with the defaulting company. Claims vary depending on the type of deposit, investment or insurance claim.
Most types of claimants are eligible for compensation deposits. But there are some exceptions, such as where the claimant is a regulated financial services company or a public institution.
Under the COMP rules, large businesses are generally unable to claim compensation unless they meet any exceptions.
Eligibility for a claim does not change just because it is charitable. FSCS will determine eligibility according to the relevant laws of charities. For example, large corporate charities are often able to make deposit claims but not investment claims.
12. Which companies are protected by the FSCS?
A: A company regulated by the FCA or PRA, or an EU company operating in the UK.
13. What types of financial enterprise assets are protected by the FSCS?
A: Banks and building societies, credit unions, insurance, property finance (including mortgage advice), investments, pensions, charities, etc.

Related Links

UK FSCS online claim submission address:
UK Financial Conduct Authority FCA:
UK Financial Ombudsman FOS:
UK business registration information query address:
UK FCA regulated entity inquiry address:
British Insurance Association:
Chartered Certified Accountant (ACCA):
Chartered Financial Advisor (APFA):

Contact information

Tel: 44 0800 678 1100/ 020 7741 4100 (UK time: 8:30--17:30 except holidays)
Email: [email protected]
Address: Financial Services Compensation Scheme, 10th Floor, Beaufort House, 15 St Botolph Street, London EC3A 7QU

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