Investor compensation and redress

This overview is a guide to the Lexis+® UK Financial Services content within the 'Investor compensation and redress' sub-topic, with links to appropriate materials.

It considers the role and scope of the Financial Services Compensation Scheme (FSCS).

The two existing EU guarantee scheme directives, the Investor Compensation Schemes Directive (Directive (EC) 97/9) (ICSD) and the recast Deposit Guarantee Schemes Directive (Directive 2014/49/EU) (recast DGSD), require Member States to establish, respectively, investor and depositor protection schemes, offering minimum levels and scope of protection to customers of ICSD and DGSD firms.

Prior to the UK’s withdrawal from EU (‘Brexit’), the UK met these obligations through the establishment of the Financial Services Compensation Scheme (FSCS). (For the impact of Brexit, see below).

Where an authorised firm is unable to meet its liabilities to a customer, that customer may be able to claim compensation from the FSCS.

The FSCS is established under Part XV of the Financial Services and Markets Act 2000 (FSMA 2000) and, since Brexit, continues to have its legal basis in FSMA 2000. It is independent of both the Prudential

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