Changes to FSCS Limits – Action Required

On April 1st some of the FSCS compensation limits are increasing. While we hope that none of your customers will ever need to claim you must ensure any documents, templates or websites reflect the changes.

Depending on terminology your Proposition / Disclosure / Terms of Business will have the limits in them and so may websites and suitability reports etc.

Briefly, the maximum payment for investment business is still 100% of any claim but the cap is increasing from £50,000 to £85,000.

Similarly, the maximum payment for mortgage business is still 100% of any claim but the cap, again, is increasing from £50,000 to £85,000.  

Other non-investment insurance limits are unchanged.

And for debt management firms the maximum payment is still 100% of any claim but the cap is increasing from £50,000 to £85,000.

The current COMP 10 rules can be accessed here and if you want to change the date:

  • Click on ‘Show Timeline’;
  • Select a date of 01st April 2019 or beyond;
  • And remember to reset the date after. 

Important Note: ATEB news is intended to provide general information ONLY. The content, including any views expressed or guidance provided, does not replace the need to comply fully with FCA Rules and Guidance. Unless you have discussed news article content with ATEB, and specifically how it relates to your circumstances, then ATEB disclaims all liability and responsibility and actions arising from any reliance placed upon it. For the avoidance of doubt therefore, any reliance you place on such information without our consultation is at your own risk.

ATEB Compliance offers compliance and regulatory advice.

ATEB Suitability provides report writing software for the financial services market.

Our View

Enhanced limits are always good for clients, however keep an eye on the levy!

Firms need to ensure all relevant documents and websites reflect the changes.

Advisers need to know about the changes

Action Required By You

  • Update all relevant documents and websites – search for ‘fscs’;
  • Ensure advisers know about the changes;
  • Contact ATEB if you need further clarification or assistance.

About the Author

Technical Manager - Often referred to as the Oracle or the Sage, Alistair has a wealth of financial services experience. He is our go-to Technical Manager and enjoys nothing more than a complicated conundrum. Feel free to test his renowned knowledge by getting in touch.

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