The Financial Services Compensation Scheme (FSCS) is the UK’s compensation fund of last resort for customers of authorised financial services firms.
This means the FSCS might pay compensation if a financial services firm (such as an insurance company) is unable, or likely to be unable, to pay claims against it.
The FSCS is an independent body. If something goes wrong, the FSCS operates different levels of compensation according to the type of investment involved. They protect:
- insurance policies (this includes any annuity you might have bought with a pot of money from a pension scheme)
- insurance broking (for business on or after 14 January 2005)
- investment business
- mortgage advice and arranging (for business on or after 31 October 2004).
The FSCS might compensate you if:
- you were a customer of a company or individual authorised by the FCA
- the company or individual has gone out of business; and you’ve lost money as a result.
There are limits to the amount the FSCS will pay.
It doesn't charge consumers for using their service.
The FSCS don’t cover workplace pensions that are trust-based schemes. If you’re contributing to, or have contributed to, a workplace pension scheme (which is not a salary-related scheme) and are concerned about the security of your pension pot, contact the employer or the trustees.