Financial Services Compensation Scheme: Changes to the Compensation sourcebook

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The Financial Services Compensation Scheme (FSCS) is the UK’s statutory compensation fund of last resort. It can provide compensation to customers of authorised financial services firms when a firm is unable to, or likely to be unable to, meet the costs itself. A well-funded, sustainable and effective compensation scheme is vital for consumer confidence, from which all financial services firms benefit.

This Consultation Paper (CP) proposes some relatively minor changes to some of the rules in our Compensation sourcebook (COMP) that govern the operation of the FSCS.

We propose:
• An increase in the non-investment (general and pure protection) insurance mediation.
• Compensation limit in relation to some types of insurance from 90% to 100%.
• Changes to the eligibility of occupational pension schemes trustees to claim on the FSCS.
• Changes to make express reference to how the compensation rules apply where a successor firm is in default or to assist the FSCS in handling claims.