Should I Use a Deposit Protection Scheme?

FSCS --- Financial Services Compensation Scheme. According to the Financial Markets and Services Act of 2000, the Financial Services Regulatory Authority (FSA) established the Financial Services Compensation Scheme (FSCS) in 2001. It states that once a UK company is approved to operate in the UK by the Financial Services Authority (FSA), which performs financial regulatory activities, the company automatically becomes a member of the Financial Services Compensation Scheme Limited (FSCS).

Financial Services Compensation Scheme

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FSCS --- Financial Services Compensation Scheme. Under the Financial Markets and Services Act 2000, the United Kingdom

The British investment and deposit protection system was first established as a deposit protection scheme under the Banking Act 1979. The current deposit insurance scheme in the United Kingdom is a sub-program of the Financial Services Compensation Scheme (FSCS) established by the Financial Services Authority (FSA) of the Financial Institutions and Services Act (FSMA 2000) in 2001. The Financial Services Authority (FSA) combines the original deposit protection plan with the Construction Industry Association Investor Protection Plan (IPS) established by the Building Association Act 1986, the Investor Compensation Plan (ICS) established by the Financial Services Act 1986, The Insured Person Protection Act (PPS) and the Friendship Association Protection Plan established by the Insured Person Protection Law are merged to form the Financial Services Compensation Plan (FSCS), which is managed by the Financial Services Authority (FSA).

When a member of a Financial Services Compensation Scheme (FSCS) encounters a problem and is facing bankruptcy, compensation will be paid to depositors or investors. The compensation amount can be as high as 85,000 pounds (750,000 yuan). ^[1] Client funds are fully protected.