Financial Services Compensation Scheme
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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. The scheme covers deposits, insurance policies, insurance brokering, investments, mortgages and mortgage arrangement.
[edit] Compensation Limits
| Percentages | Maximum Compensation | |
|---|---|---|
| Deposits | 100% of the first £35,000
Note: for deposit claims against firms declared in default before 1 October 2007, the maximum level of compensation is £31,700 (100% of £2,000 and 90% of the next £33,000). |
£35,000 |
| Investments | 100% of the first £30,000 and 90% of the next £20,000 | £48,000 |
| Mortgage advice and arranging | 100% of the first £30,000 and 90% of the next £20,000 | £48,000 |
| Long term insurance
(e.g. pensions and life assurance) |
100% of the first £2,000 and 90% of the remainder of the claim | Dependent on claim |
| Compulsory insurance
(e.g. motor) |
100% of claim | Dependent on claim |
| Non Compulsory insurance
(e.g. home & travel) |
100% of the first £2,000 and 90% of the remainder of the claim. | Dependent on claim |
| General insurance advice and arranging | 100% of the first £2,000 and 90% of the remainder of the claim.
Note: Compulsory insurance is protected in full |
Dependent on claim |
[edit] References
- What if Northern Rock goes bust?. BBC News (2007-09-14). Retrieved on 2007-09-15.
- FSCS - Consumer home page - Consumer Key Facts - Limitations of the scheme - Compensation Limits. FSCS. Retrieved on 2007-10-05.
- FSCS - Consumer home page - Consumer FAQs about FSCS - Deposit claims FAQs. FSCS. Retrieved on 2008-03-18.
[edit] External links
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