The following Financial Services guidance note Produced in partnership with Honor Levy, financial services consultant provides comprehensive and up to date legal information covering:
The Financial Services Compensation Scheme (FSCS) came into force on 1 December 2001 (although still covers claims from before that date) and is established under Part XV of the Financial Services and Markets Act 2000 (FSMA 2000). It is a statutory compensation scheme of last resort for customers of firms authorised by the Financial Conduct Authority (FCA) or the Prudential Regulation Authority (PRA). The FSCS is funded by levies placed on authorised firms and is independent of the FCA, the PRA and the government. It does not charge claimants for using its service. Since 1 April 2013, the PRA and the FCA have been jointly responsible for the rule making and oversight of the FSCS, and the three bodies entered into a memorandum of understanding (MOU) detailing how they will cooperate in carrying out their functions with regard to the compensation scheme. The MOUs can be read here (PRA/FSCS) and here (FCA/FSCS). Detailed compensation scheme rules can be found in the following ancillary Practice Notes:
Financial Services Compensation Scheme (FSCS)—the qualifying conditions for compensation
Financial Services Compensation Scheme (FSCS)—payment or rejection of compensation
Financial Services Compensation Scheme (FSCS)—automatic assignment or subrogation of rights
Financial Services Compensation Scheme (FSCS)—funding
The role of the FSCS is to compensate certain persons, usually individuals or small firms, if a firm has stopped trading or does not
**excludes LexisPSL Practice Compliance, Practice Management and Risk and Compliance. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
Take a free trial
0330 161 1234