Financial Services Compensation Scheme
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.
Contents |
[edit] Compensation limits
| Percentages | Maximum Compensation | ||
|---|---|---|---|
| Deposits | 100% of the first £85,000 per person per firm
(for claims against firms declared in default from 31 December 2010). |
100% of the first £50,000 per person per firm
(for claims against firms declared in default from 7 October 2008). |
£85,000 |
| 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 |
[edit] References
- "What if Northern Rock goes bust?". BBC News. 14 September 2007. http://news.bbc.co.uk/1/hi/business/6994746.stm. Retrieved 15 September 2007.
- "FSCS - Consumer home page - What we cover - Eligibility rules - Compensation Limits". FSCS. http://fscs.org.uk/what-we-cover/eligibility-rules/compensation-limits/. Retrieved 13 February 2010.
- "FSCS - Consumer home page - What we cover - Questions and Answers". FSCS. http://fscs.org.uk/what-we-cover/questions-and-answers/. Retrieved 13 February 2010.
[edit] See also
[edit] External links
- Financial Services Compensation Scheme
- List of Banks and License Holders from http://www.thisismoney.co.uk
- New limits for Financial Services Compensation Scheme
- The section of the Financial Services and Markets Act 2000 setting out the scheme
 |
This economics or finance-related article is a stub. You can help Wikipedia by expanding it. |
