An insolvency lawyer’s guide to the Financial Services Compensation Scheme
An insolvency lawyer’s guide to the Financial Services Compensation Scheme

The following Restructuring & Insolvency guidance note provides comprehensive and up to date legal information covering:

  • An insolvency lawyer’s guide to the Financial Services Compensation Scheme
  • Brexit impact
  • Role and operation of the FSCS
  • Ranking of claims on insolvency

This Practice Note provides an overview of the role and operation of the Financial Services Compensation Scheme (FSCS) and the ranking of deposits protected by it in the waterfall of payments to creditors in the event of the insolvency of a relevant firm.

For further detail on the FSCS, the following Practice Notes can be found in Lexis®PSL Financial Services:

  1. The Financial Services Compensation Scheme

  2. Financial Services Compensation Scheme (FSCS)—the qualifying conditions for compensation

  3. Financial Services Compensation Scheme (FSCS)—automatic assignment or subrogation of rights

  4. Financial Services Compensation Scheme (FSCS)—payment or rejection of compensation, and

  5. Financial Services Compensation Scheme (FSCS)—funding

Brexit impact

As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an implementation period, during which it continues to be subject to EU law. References to exit day in many Brexit SIs are to be read as reference to IP completion day (Implementation Period completion day, defined in clause 39 as 31 December 2020 at 11.00 pm) (unless that provision is expressly disapplied by the SI in question). For further details, see News Analysis: Brexit—impact of the Withdrawal Agreement and European Union (Withdrawal Agreement) Act 2020 for R&I lawyers and Brexit Bulletin—key updates, research tips and resources.

The Deposit Guarantee Scheme and Miscellaneous Provisions (Amendment)