FSCS (Financial Services Compensation Scheme)

The Financial Services Compensation Scheme (FSCS) is a UK organization that protects consumers if financial firms, like banks or insurance companies, fail. If a firm cannot pay back customers’ money due to insolvency, the FSCS steps in to provide compensation, typically up to a set limit. This ensures that individuals do not lose all their savings or investments if their financial provider collapses. The scheme covers various financial services, including banking, insurance, and investments, offering reassurance and stability to consumers by backing the safety of their money within regulated firms.