What is the FSCS
The Financial Services Compensation Scheme (FSCS) is the UK’s statutory Deposit insurance and investors compensation scheme for customers of authorised financial services firms. This means that FSCS can pay compensation if a firm is unable, or likely to be unable, to pay claims against it.
Set-up by parliament and funded by the financial services industry, FSCS is a completely independent and free service. The FSCS can only pay compensation if the firm responsible was regulated at the time of providing a service or product. Firms authorised by the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) pay the FSCS an annual levy which funds the cost of running the service. This allows the FSCS to pay out compensation to eligible claimants. The updated levy for 2021/22 is £833m.
What Firms Are Covered?
The FSCS maintains a database of failed firms. This can be viewed here.
Limits of Cover
There are limits to what you can be awarded depending on the type of claim you wish to make and when the firm failed.
|Date Firm Failed||Pension Provider Fails||SIPP Operator Fails||Bad Pension Advice including pension transfers||Bad Investment Advice|
|If the firm failed after 01st Apr 2019
|100% of your claim, with no upper limit||up to £85,000 per eligible person, per firm.||up to £85,000 per eligible person, per firm.||up to £85,000 per eligible person, per firm.|
|If it failed between 03 Jul 2015 and 31st Mar 2019||100% of your claim, with no upper limit.||up to £50,000 per eligible person, per firm.||up to £50,000 per eligible person, per firm.||up to £50,000 per eligible person, per firm|
|If it failed between 01st Jan 2010 and 02nd Jul 2015||90% of your claim, with no upper limit||up to £50,000 per eligible person, per firm.||up to £50,000 per eligible person, per firm||100% of the first £30,000 and 90% of the next £20,000 up to £48,000 per eligible person, per firm|
If you have been a victim of bad pension or investment and the firm has failed, we can help you. Call our specialist Pensions team today or complete our easy online questionnaire to see if you are eligible to claim.Apply Now