Financial Services Compensation Scheme (FSCS)
The UK's statutory fund of last resort that compensates consumers when authorised financial firms fail, covering deposits up to £85,000 and investment claims up to £85,000.
Also known as: FSCS
Last reviewed: 10 June 2026
The Financial Services Compensation Scheme provides protection to consumers of UK-authorised financial firms that become insolvent and cannot meet their obligations. It is funded by a levy on all FCA-authorised firms. For bank deposits, FSCS covers up to £85,000 per person per banking group (£170,000 for joint accounts). Certain temporary high-balance situations — such as house sale proceeds — are covered up to £1 million for six months.
For investment claims, FSCS covers up to £85,000 per person for bad advice or mis-selling by an FCA-authorised firm. For insurance, the limit is generally 90% of the claim. The scheme does not cover the performance of investments (i.e., losses from market falls), nor losses where the firm was not FCA-authorised — which is why dealing with authorised firms is so important.
From a fraud perspective, FSCS is relevant where an authorised firm acts as the vehicle for the scam (e.g., a pension liberation scheme operated through a regulated firm) or where victims were mis-sold high-risk investments. FSCS coverage is not available for losses in purely unauthorised scams — another critical reason to verify FCA authorisation before investing.
Examples
- A consumer has £75,000 in savings at a UK bank that goes bust; the FSCS pays the full amount within seven days.
- Victims of mis-sold SIPPs administered by an insolvent IFA firm claim up to £85,000 each from the FSCS.