The Financial Services Compensation Scheme (FSCS) paid out a complete of £327m in compensation to prospects last year.
Nearly 12,000 selections had been processed by the FSCS’s claims service, leading to £176m paid to prospects regarding investments, pensions and monetary recommendation.
More than 12,500 funds had been made to prospects of failed insurers, with compensation totalling £134m.
A key milestone for the year was the restoration of over £56m from the estates of failed monetary corporations and associated third events, representing 17% of the entire compensation prices.
The FSCS additionally noticed a 21% improve in claims selections in comparison with the earlier year.
FSCS’s chief government Martyn Beauchamp mentioned: “At FSCS, we’re centered on getting individuals and companies again on observe as shortly as attainable when monetary corporations fail.”
“I’m happy with our achievements over the course of the year. It highlights how very important our work is in constructing belief and confidence in monetary providers, and for selling development and stability within the UK’s wider financial system.”
These efforts had been complemented by enhancements to its programs, together with the introduction of a brand new digital funds portal for deposit taker prospects, which enabled some to retrieve their financial savings inside 24 hours of their agency coming into insolvency.
Beauchamp additionally emphasised the FSCS’s dedication to levy payers. “I’m additionally notably happy that our obligation to effectively pay compensation to prospects was matched equally by our duty to levy payers,” he added.
“In 2024/25, we secured greater than £56m in recoveries from these chargeable for inflicting monetary hurt to customers. This takes us to over £110m over the previous two years alone, with the bulk used to offset future levy prices for corporations.”
The FSCS mentioned the report highlights its continued efforts to strengthen its core capabilities and construct belief inside the monetary providers sector.
In May, the FSCS lower its levy for advisers for this year by £38m.
