The Financial Services Compensation Scheme (FSCS) has revealed it paid a total of £527m in compensation to customers from levies raised on just over 49,000 regulated financial services firms during 2019/20.

In its Annual Report and Accounts and Class Statements, the FSCS said it helped over 258,000 customers to get their lives, families and businesses back on track.

The FSCS also suggested that 98% of customers who went directly to the FSCS did so using its online claims service, receiving 100% of the compensation they were owed.

The regulator said it works hard to reduce levies by pursuing recoveries from the estates of failed financial services firms. Last year, the FSCS recovered more than £50m from 88 estates to either offset levies or return to the industry.

“In 2019/20, FSCS helped over 258,000 customers who had suffered losses from 874 failed financial services firms, including some 137 firms which failed this year,” FSCS chief executive, Caroline Rainbird, commented.

“It is vital we recognise that FSCS was only able to pay compensation because of the firms who paid our levy, together with the money that was recovered by FSCS.

“It is crucial that we continue to work with the industry to do what we can to help reduce compensation costs and avoid financial harm to consumers. We will continue to work with our stakeholders to make sure that we provide a trusted, fair and efficient compensation service that helps to build trust and confidence in the UK’s financial services industry.”

Share Story: