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

Copyright © 2025 LexisNexis
Produced in partnership with Honor Levy of LexisNexis
Practice notes

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

Copyright © 2025 LexisNexis

Produced in partnership with Honor Levy of LexisNexis

Practice notes
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This practice Note covers the conditions necessary for the payment of compensation to a person by the Financial Services Compensation Scheme (FSCS).

This covers rules relating to:

  1. •

    who may claim compensation

  2. •

    from whom they can claim, and

  3. •

    what they can claim for

There are different regimes under the FSCS compensation scheme system for deposit claims, non-deposit claims and insurance policyholder protection. The Prudential Regulation Authority (PRA) is the relevant authority for rules relating to claims concerning deposits and insurance provision, whereas the Financial Conduct Authority (FCA) is responsible for other types of financial activity covered by the FSCS.

The relevant corresponding rules are found in the COMP sourcebook of the FCA Handbook and in the Depositor Protection and Policyholder Protection parts of the PRA Rulebook.

Compensation paid to eligible claimants

Claims under COMP

In relation to those claims coming within the ambit of the FCA, compensation may be paid out by the FSCS to an eligible claimant (subject to COMP 11 (Payment of compensation)) if the FSCS is satisfied

Honor Levy
Honor Levy

LexisNexis

Honor previously worked as a solicitor in the Enforcement Division of the Financial Conduct Authority (FCA). Whilst at the FCA, she also worked as an investigator in many regulatory investigations, specialising in investigating breaches of the FCA’s rules and regulations by retail firms and their directors. Prior to joining the FCA, Honor was an associate in the General Commercial Litigation department at SJ Berwin LLP, handling a wide range of litigation cases, including representing financial institutions and directors who were subject to regulatory investigations and enforcement actions.

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
COMP definition
What does COMP mean?

money-purchase'>contracted-out money purchase scheme.

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