The £85,000 limit, eligible claims, and the gaps that leave most fraud victims unprotected — a comprehensive guide to FSCS protection for UK investors.
What the FSCS Covers
The Financial Services Compensation Scheme (FSCS) protects eligible UK investors up to £85,000 per authorised firm if that firm fails. Coverage applies to deposits with UK-authorised banks, investments with FCA-authorised investment firms, and insurance policies with FCA-authorised insurers.
The Critical Gap: Fraud vs. Firm Failure
The FSCS covers firm failure — not fraud. If you invest with an FCA-authorised firm and that firm goes bust, the FSCS may compensate you. If you invest with an unauthorised firm (including most crypto platforms and many forex brokers), the FSCS does not apply. This gap leaves the majority of investment fraud victims without FSCS protection.
What Is NOT Covered
- Losses from bad investment decisions or market movements
- Investments with unauthorised firms
- Losses above the £85,000 limit
- Investments in unregulated products (most crypto, many CFDs)
How to Make a Claim
Visit fscs.org.uk and submit a claim online. You will need your account details, evidence of your investment, and the firm’s details. Claims are typically processed within six months. There is no fee to make a claim — be wary of claims management companies that charge upfront fees.
Alternative Routes
If the FSCS does not apply, consider: the Financial Ombudsman Service (for complaints against authorised firms), Section 75 claims (for credit card payments), chargeback claims (for debit card payments), and civil litigation.