The Financial Services Compensation Scheme is a compensation fund for authorised financial services firms in the UK, protecting savings, insurance, investments and mortgages. If a firm becomes insolvent or ceases trading, the Scheme may be able to provide compensation.
You can find more detailed information about the scheme and what it means for you by clicking on the following links:
FSCS Website
We are covered by the Financial Services Compensation Scheme (FSCS) that was established under the Financial Services and Markets Act 2000. As a customer of Principality Building Society your account(s) with us are covered by the Financial Services Compensation Scheme, unless you are:
- A large company
- A large partnership
- A large mutual association
- A local, provincial or municipal authority
- A credit institution
- An overseas financial services institution
- A pension and retirement fund or a trustee of such a fund
- A government, or central administrative authority
- A firm within the Principality Building Society group
- A person holding 5% or more of the capital of Principality Building Society or of any firm in the group
- The auditors of Principality Building Society and its group
- A person considered responsible for the default of Principality Building Society which triggers the FSCS.
- A person whose claim arises from transactions relating to a conviction they have received for money laundering.
The FSCS only pays compensation for financial loss if a financial institution becomes insolvent or defaults on its obligations. The compensation limits are per person per firm.
Retail Deposits
Deposits made by private individuals and small businesses are protected by the FSCS. From 31 December 2010, the maximum level of compensation for bank and building society claims will be £85,000 per person and will be the maximum amount for the total of all deposit accounts held by the individual with us.
Mortgages
The maximum level of compensation for claims against firms declared in default is £50,000 per person per firm. A claim in respect of a mortgage would only cover claims such as for misselling or for recovering sums paid that were not due, for example.
Investments
For claims against firms in default, which are providers of investment products, FSCS cover is up to £50,000 per person. Principality Building Society does not provide either investment advice or investments but introduces customers to Aviva.
Insurance
Insurance advising and arranging is covered for 90% of the value of your claim (there’s no maximum amount).
Further information about the compensation scheme arrangements is available from the FSCS http://www.fscs.org.uk/.
