Financial Services Compensation Scheme & Financial Ombudsman Service

Financial Services
Compensation Scheme (FSCS)

The Financial Services Compensation Scheme (FSCS) acts as a fund of last resort for customers of UK authorised financial service firms.  The FSCS does not cover the Channel Islands or The Isle of Man, although some exceptions exist for insurance claims.

FSCS compensates customers of financial firms that have stopped trading or who do not have sufficient assets to pay claims made against it, being ‚Äėin default‚Äô.¬† The FSCS only pays compensation for financial loss.¬† The FSCS is free to consumers and is independent of government and the financial industry.¬† The FSCS covers firms authorised by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA).

The FSCS covers the following products, the actual level of compensation depends on the basis of your claim. Compensation limits are per person per firm, and per claim category (listed below).  The maximum levels of compensation are:

  • Investments: most types of investment business are covered for up to a maximum of ¬£85,000.
  • Pensions: most types of pension business are covered for up to a maximum of ¬£85,000.
  • Insurance: most types of insurance contacts are covered for 90% of the claim, without any upper limit.
  • Mortgages: advising and arranging is covered up to a maximum of ¬£85,000.

For further information, please refer to their website http://www.fscs.org.uk/ or download the FSCS leaflet.

Financial Ombudsman
Service (FOS)

The Financial Ombudsman Service (FOS) may be able to help you if you have cause to complain regarding the sale of a financial product or service.

In the first instance, you should raise your concerns or complaint with the business you are unhappy with and give them the opportunity to try and put things right.  A business has up to 8 weeks to resolve any matter raised.

If a business does not answer your concerns within eight weeks or you are unhappy with what they say, then you can then refer the matter to FOS.

You can also email FOS at¬†[email protected]¬†or make¬†general enquiries online. Alternatively, you can ring FOS on 0300 123 9 123 or 0800 023 4567 between 8am to 8pm Monday to Friday, and from 9am to 1pm on Saturdays.

For further information, please refer to their website http://www.financial-ombudsman.org.uk/ or download their helping you resolve your complaint and how we deal with your complaint guides.

We are highly recommended

Hear from Andrew’s Clients