FSCS and FOS
Related external information
Financial Services Compensation Scheme (FSCS)
The FSCS became operational on 1 December 2001 when the Act came into force. The FSCS covers claims against firms where they are unable, or likely to be unable, to pay claims against them. In general this is when a firm is insolvent or has gone out of business.
The FSCS has the power to compensate consumers in the event of the failure of any firm authorised under the Act (or any participating EEA firm), and covers insurance companies, deposit-takers and investment firms.
The FSCS has appointed us to act as its agent to collect relevant data, raise and issue any levies and collect all payments due on its behalf. This avoids duplication and reduces costs to firms. The majority of firms are liable to pay FSCS fees, but exemptions may be obtained in certain circumstances.
FSCS Levy calculation notes [ PDF ]
FSCS Exemption Notice [ PDF ]
FSCS Exemption Guidance [PDF]
CP06/2: Regulatory fees and levies 2006/07
Handbook Notice 53 [PDF] – see FSCS management expenses levy limit 2006/07
Other relevant information
Fees Manual Chapter 6 – FSCS levy
Discussion Paper 06/1: FSCS funding review
Financial Ombudsman Service (FOS)
The FOS provides a mechanism for resolving disputes, which is a simple, informal and accessible alternative to the courts. The FOS’s compulsory jurisdiction covers complaints against authorised firms about their regulated activities and certain specified other financial services activities.
It is provided free of charge to complainants. The FOS's decisions are based on what is 'fair and reasonable' and are binding on firms if a complainant accepts them.
FOS Exemption Notice [ PDF ]
FOS Exemption Guidance [ PDF ]
CP06/2: Regulatory fees and levies 2006/07
PS06/2: Regulatory fees and levies 2006/07 including feedback on CP06/2
Other Relevant information
Fees Manual Chapter 5 – FOS levy
Discussion Paper 06/2: FOS compulsory jurisdiction: funding review