The FSCS and the Consumer

The Financial Services Compensation Scheme (FSCS) is the UK's statutory fund of last resort for customers of authorised financial services firms.

This means that FSCS can pay compensation if a firm is unable, or likely to be unable, to pay claims against it. FSCS is an independent body, set up under the Financial Services and Markets Act 2000 (FSMA).

Services from the FSCS are free to consumers.

It is important to note that the FSCS is the "fund of last resort" if you are entitled to compensation you must first claim against the firm that originally arranged the product, investment etc. It is only if they can not meet your claim or have gone out of business and are declared in default by the FSCS can the FSCS then consider your claim.

You can read more about the FSCS here where there is also a link to the FSCS web site