FSCS & FOS

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 ‘in default’.  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:

  • Deposits: £85,000 per person, per firm.
  • Investments: £50,000 per person, per firm.
  • Home Finance (e.g. mortgage advice and arranging): £50,000 per person, per firm.
  • Insurance policies: Protects 90% of other types of claim with no upper limit. Claims under compulsory insurance, professional insurance and certain claims for injury, sickness or infirmity of the policyholder are protected at 100%.
  • General insurance advice and arranging: Protects 90% of the claim with no upper limit. Compulsory insurance is 100%.

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 8 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 webiste http://www.financial-ombudsman.org.uk/ or download their helping you resolve your complaint and how we deal with your complaint guides.