Who operates the Financial Services Compensation Scheme (FSCS)?

The Financial Services Compensation Scheme (FSCS) is operated primarily by the Financial Conduct Authority (FCA) alongside the Prudential Regulation Authority (PRA). The FSCS provides compensation to consumers if a financial service provider is unable to meet its obligations, such as in cases of failure or insolvency.

The FCA is responsible for regulating financial firms and protecting consumers, while the PRA focuses on promoting the safety and soundness of banks and financial institutions. Together, they oversee the operation and management of the FSCS, ensuring that it effectively fulfills its purpose of consumer protection within the financial services sector.

Understanding the roles of these two regulatory bodies highlights their importance in maintaining confidence in the financial system, as they work to safeguard customer deposits and investments.