FSCS claims: how to claim compensation when a regulated firm has failed
How to claim compensation when a regulated firm has failed
No win, no fee. Free initial assessment. We do the work while you get on with your life.
If a financial firm that advised you or looked after your money has gone under, you are not on your own, and you have not necessarily lost everything. The Financial Services Compensation Scheme, the FSCS, is the UK’s statutory safety net. When an authorised firm fails and can no longer put things right itself, the FSCS can step in and pay compensation in its place, up to £85,000 per eligible person, per failed firm for most investment, pension and advice claims.
We should not take it for granted. The FSCS is industry funded and free for consumers to use, and it has quietly rescued the finances of tens of thousands of ordinary people. In its 2025/26 financial year it paid around £267m in compensation to more than 14,000 customers, and recovered over £34m from the firms that failed. The year before, in 2024/25, it paid a record £327m to more than 32,600 people. That is close to £600m returned to consumers in two years alone. (Sources: FSCS Annual Report 2025/26 and 2024/25.)
How the FSCS claim process works
A claim runs through the same broad stages whether you do it yourself or ask us to do it for you. The difference is who carries the load.
Check the firm has failed
Confirm the firm is regulated and is in default, in liquidation or dissolved. We check the FSCS, the FCA Register and Companies House for you.
Identify your type of claim
Pension, investment, advice, mortgage or negligence. Knowing the right type matters, because it shapes the evidence and the loss calculation.
Gather the evidence
Statements, suitability reports and correspondence. We do the digging and write to providers where documents are missing.
Submit the claim
We put your claim to the FSCS with a clear account of what went wrong and the loss you suffered.
FSCS assesses it
The FSCS checks eligibility and calculates your loss. Complex cases, such as defined benefit pensions, take longer here.
Decision and payment
If your claim succeeds, the FSCS pays compensation up to the protection limit for your claim type.
Current FSCS protection limits (correct as at July 2026)
| What you are claiming for | FSCS protection limit |
|---|---|
| Investments (a failed investment firm) | Up to £85,000 per person, per firm |
| Pensions held with a failed SIPP operator | Up to £85,000 per person, per firm |
| Pension annuities and personal pensions from a failed regulated insurer (long-term insurance) | 100% of the claim, no upper limit |
| Advice and financial planning | Up to £85,000 per person, per firm |
| Mortgage advice | Up to £85,000 per person, per firm |
| Deposits and savings (a failed bank, building society or credit union) | Up to £120,000 per person, per firm (raised from £85,000 on 1 December 2025) |
Limits verified against the FSCS in July 2026. Deposit protection rose to £120,000 on 1 December 2025; the other limits were unchanged at that date. Always treat the FSCS website as the current authority.
We are strong supporters of the FSCS, and we want you to understand where it does and does not help, because a wasted application costs you time you may not have. Three things are worth being clear about before you start.
- The firm has to be regulated, and it has to have failed. The FSCS only pays where an FCA-authorised firm is in default. If the firm is unregulated, or still trading, the FSCS is not the route.
- If the firm is still trading, you go a different way. That is a complaint to the firm and, if you are not satisfied, the Financial Ombudsman, which can order the firm to pay redress. We cover that on our Firm and Financial Ombudsman claims page.
- You need to know what kind of claim you are making. A mis-sold pension, bad advice and professional negligence are treated differently. Getting the category right at the start saves months later. If you are not sure, that is exactly what our free assessment is for.
How long does an FSCS claim take?
Honestly, it varies, and the FSCS is not always consistent. Some straightforward claims are settled in under four months. Others, particularly complex cases that need detailed loss calculations, such as defined benefit pension transfer claims, can take far longer, sometimes running into years. We will give you a realistic expectation for your case rather than a number that sounds good, and we handle the chasing so you are not left waiting in the dark.
In the news
- FSCS pays out a record £327m in compensation to consumers in 2024/25. (Money Marketing)
- FSCS mortgage advice compensation rises to £1.6m in 2025/26. (Mortgage Solutions)
- FSCS declares a Sheffield wealth firm failed over pensions advice, some cases linked to the British Steel Pension Scheme. (Professional Adviser)
Which firms have failed?
We keep an individual page for every regulated firm that has been declared in default, each with a sourced timeline of what happened, drawn from the FSCS, the FCA Register and Companies House. If you know the firm involved, look it up on our claims by company directory to see its status and history. The claims we most often help with include mis-sold pensions, SIPP claims, investments, bonds, ISAs and bad advice from a financial adviser.
Frequently asked questions
The Financial Services Compensation Scheme is the UK’s statutory compensation scheme for customers of authorised financial services firms. It is independent and industry funded, and it pays compensation when a regulated firm fails and cannot meet the claims against it.
For a protected investment, pension or advice claim, the FSCS can pay up to £85,000 per eligible person, per failed firm. Deposits are protected up to £120,000, and pension annuities from a failed regulated insurer can be covered in full. The amount you receive depends on the loss you can evidence.
A firm may be in liquidation, dissolved, or formally declared in default by the FSCS. Tell us the firm’s name and we will check the FSCS, the FCA Register and Companies House and confirm its status for you.
The FSCS pays compensation when a firm has failed. The Financial Ombudsman handles complaints against firms that are still trading and can order them to pay redress. The right route depends on whether the firm is still in business.
It depends on the firm and the complexity of the claim. Some are settled in under four months; complex claims that need detailed calculations, like defined benefit pension transfers, can take considerably longer. We keep you updated at every stage.
Not sure which route is yours?
Higher awards, but cost and risk apply
Talk to us about your claim
If you think you lost money through a firm that has since failed, have a free, no obligation conversation with us. We will give you an honest view of where you stand and, if you want us to, take the work off your hands on a no win, no fee basis. Call 0800 041 8359 or make an enquiry and one of our team will get back to you.
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