The Financial Services Compensation Scheme
Produced in partnership with Honor Levy of LexisNexis

The following Financial Services practice note produced in partnership with Honor Levy of LexisNexis provides comprehensive and up to date legal information covering:

  • The Financial Services Compensation Scheme
  • Administration of the FSCS
  • Making a claim
  • Obligations for regulated firms
  • Participation
  • Passporting firms
  • Disclosure
  • Single Customer View and Continuity of Access
  • Obtaining compensation—the different regimes
  • Deposit claim
  • More...

The Financial Services Compensation Scheme

BREXIT: 11pm (GMT) on 31 December 2020 (‘IP completion day’) marked the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. Following IP completion day, key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see: Brexit and financial services: materials on the post-Brexit UK/EU regulatory regime.

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

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