How do firms know that FSCS is paying compensation only for eligible claims?
The FSCS pay compensation in line with its rules, which are made by us, and each claim is judged on its merits. The FSCS will only pay compensation where an actual loss has occurred and it does not pay compensation for market performance alone. It carries out extensive investigations when considering claims, including gathering information from investors, advisers and product providers. The FSCS’s internal Quality Assurance Department continuously reviews whether the Scheme’s policies and procedures are being properly followed. The work of this department is itself reviewed periodically by auditors.
