Changes to FSCS cover

The deposit protection limit relates to the combined amount in all the eligible depositors’ accounts with the bank, including their share of any joint account, and not to each separate account.

For joint accounts each account holder is treated as having a claim in respect of their share.

In some cases, an eligible deposit that’s categorised as a ‘temporary high balance’ (for example, as a result of a house sale, inheritance, or insurance payment) may be protected to a higher limit for 6 months after the amount has been credited to your account, or from the moment when such eligible deposits become legally transferable. This applies from 3 July 2015. The FSCS website has further details.

Exclusions from protection

A deposit is excluded from protection if:

(1) The holder and any beneficial owner of the deposit have never been identified in accordance with money laundering requirements. For further information, contact your bank, building society or credit union.

(2) The deposit arises out of transactions in connection with which there has been a criminal conviction for money laundering.

(3) It is a deposit made by a depositor which is one of the following:

• credit institution
• financial institution
• investment firm
• insurance undertaking
• reinsurance undertaking
• collective investment undertaking
• pension or retirement fund¹
• public authority, other than a small local authority.

(4) It is a deposit of a credit union to which the credit union itself is entitled.

(5) It is a deposit which can only be proven by a financial instrument² unless it is a savings product which is evidenced by a certificate of deposit made out to a named person and which existed in the UK, Gibraltar or a Member State of the EU on 2 July 2014.

(6) It is a deposit of a collective investment scheme which qualifies as a small company³.

(7) It is a deposit of an overseas financial services institution which qualifies as a small company⁴.

(8) It is a deposit of certain regulated firms (investment firms, insurances undertakings and reinsurances undertakings) which qualify as a small business or a small company⁵ refer to the FSCS for further information on this category.

(9) It is not held by an establishment of a bank, building society or credit union in the UK or, in cases of a bank or building society incorporated in the UK, it is not held by an establishment in Gibraltar.

For further information about exclusions, refer to the FSCS website at www.FSCS.org.uk

¹Deposits by personal pension schemes, stakeholder pension schemes and occupational pension schemes of micro, small and medium sized enterprises are not excluded.

²As listed in Part I of Schedule 2 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, read with Part 2 of that Schedule.

³Under the Companies Act 1985 or Companies Act 2006

⁴See footnote 3

⁵See footnote 3

The FSCS aims to repay your eligible deposits (up to the compensation limit) within 7 days, and is required to do so within 10 working days – with some exceptions.

If you have any questions regarding the change in the compensation limit, please contact FSCS.

Post

Financial Services Compensation Scheme
10th Floor Beaufort House
15 St. Botolph Street
London
EC3A 7QU

Phone

0800 678 1100

Email

ict@fscs.org.uk

Website

fscs.org.uk