FSCS helped over 250,000 customers with £527m in compensation

The Financial Services Compensation Scheme (FSCS) paid out £527 million and helped a total of 258,119 customers during the year, 79 per cent of whom were satisfied with the job performed by the regulator.

As part of its annual report, the FSCS summarised that it continued to assess claims fairly and efficiently, driving outstanding customer experience. The dedication of FSCS staff led to a customer satisfaction score of 79%.

98% of customers who came directly to FSCS did so using our online claims service, therefore receiving 100% of the compensation they were owed.

Through savings and efficiencies, FSCS achieved an eight per cent reduction in like-for-like claims handling costs, which helped to deliver more value for money for levy payers.

FSCS says that it works hard to reduce levies by pursuing recoveries from the estates of failed financial services firms.

Last year FSCS recovered over £50 million from 88 estates to either offset levies or return to the industry. It also put its data, insights and experience to good use by identifying over 100 potential phoenixing cases and referring them to the FCA. Because of these referrals, at least seven firms withdrew their applications for FCA authorisation.

Caroline Rainbird, FSCS’s Chief Executive, said “It is now just over a year since I joined FSCS and I want to pay tribute to my colleagues, for making sure that we put customers, levy payers and key stakeholders at the heart of everything we do. Their dedication and commitment have been, and continue to be, particularly evident during the coronavirus pandemic, which is a difficult and troubling time for us all.”

“We have not lost a single day’s work since we went into lockdown in mid-March and this is an outstanding testament to the resilience of our staff and partners to continue to deliver business as usual.”

“In 2019/20, FSCS helped over 258,000 customers who had suffered losses from 874 failed financial services firms, including some 137 firms which failed this year. It is vital we recognise that FSCS was only able to pay compensation because of the firms who paid our levy, together with the money that was recovered by FSCS.”

“It is crucial that we continue to work with the industry to do what we can to help reduce compensation costs and avoid financial harm to consumers. We will continue to work with our stakeholders to make sure that we provide a trusted, fair and efficient compensation service that helps to build trust and confidence in the UK’s financial services industry.”