Financial Services Compensation Scheme (FSCS)

    0
    281
    FSCS

    The Financial Services Compensation Scheme (FSCS) is an independent body in the UK, set up under the Financial Services and Markets Act 2000, to provide a free service to consumers that have allegedly been wronged by a financial firm or institution.

    In contrast to the Financial Ombudsman Service, the FSCS handles complaints against FSA-authorised firms in the event that the firm has become insolvent and unable to pay compensation.

    The FSCS primarily supports private customers and small firms — special terms apply to larger companies. After the FSCS finds a financial services firm unable, or likely to be unable, to pay a claim against it, it is able to pay compensation to consumers instead, as the UK’s statutory fund of last resort.

    - Advertisement -

    The scheme covers deposits, insurance policies, insurance brokering, investments, mortgages and mortgage arrangements.

    Further reading

    Financial Services Compensation Scheme website

    - Advertisement -