FSCS protection extended from 31 October
About the Financial Services Compensation Scheme:
The Financial Services Compensation Scheme (FSCS) is the UK’s statutory fund of last resort for customers of financial services firms. This means that FSCS can pay compensation to consumers if a financial services firm is unable, or likely to be unable, to pay claims against it. This will usually be because it is insolvent. FSCS is an independent body, set up by law. The service is free to consumers.
FSCS was set up under the terms of the Financial Services and Markets Act 2000 and became the UK’s single financial services compensation scheme from 1 December 2001.
There are limits to the amounts of compensation the Scheme can pay. For mortgage claims, and for claims relating to advice and arranging of long-term care insurance products, the limit will be £48,000 (100% of the first £30,000 and 90% of the next £20,000).