UK Financial Services Compensation Scheme (FSCS)


UK Financial Services Compensation Scheme (FSCS)..

The Financial Services Compensation Scheme (FSCS) is the United Kingdom’s compensation fund of LAST RESORT for customers of AUTHORISED financial services firms.

The FSCS may pay compensation if a listed company is unable, or likely to be unable, to pay claims against it. Normally because the company has stopped trading or has been declared in default.

The main maximum levels of compensation are:

Bank Deposits per private individuals or small businesses, for each Financial Institution: £85,000

Investments (1) per individual, for each Financial Institution: £50,000

The FSCS protects:

deposits,
insurance policies,
insurance broking (for business on or after 14 January 2005), including connected travel insurance where the policy is sold alongside a holiday or other related travel (e.g. by travel firms and holiday providers) (for business on or after 1 January 2009);
investment business, and
home finance (for business on or after 31 October 2004).

(1) Investments

FSCS provides protection if an authorised investment firm is unable to pay claims against it. For example:
for loss arising from bad investment advice, poor investment management or misrepresentation;
when an authorised investment firm goes out of business and cannot return investments or money.
Investments covered include: stocks and shares; unit trusts; futures and options; personal pension plans and long-term investments such as mortgage endowments.

Source:
FSCS

Channel Islands: Jersey and Guernsey.

Banks in Jersey participate in the Jersey Bank Depositors Compensation Scheme.
Banks in Guernsey participate in the Guernsey Bank Depositors Compensation Scheme.

These Schemes offer protection for eligible deposits of up to £50,000

Full details at:


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