Depositor Protection

Enhance depositor protection across banking licences

The European Deposit Guarantee Schemes reimburse a depositors up to a set limit whose bank has failed thereby protecting a part of savers wealth from bank failures. This additionally provides confidence in the financial sector, helping to alleviate panic withdrawals from banks, which in turn help to avoid banking crises and financial contagion. 

The Financial Services Compensation Scheme (FSCS) is the UK’s statutory fund of last resort for customers of financial services firms. This means that the FSCS can pay compensation to consumers if a financial services firm is unable, or likely to be unable, to pay claims against it. The FSCS is an independent body, set up under the Financial Services and Markets Act 2000 (FSMA). It does not charge individual consumers for using the service.

The FSCS covers business conducted by firms authorised by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA), the independent watchdogs set up by government to regulate financial services in the UK and protect the rights of consumers. European firms (authorised by their home state regulator) that operate in the UK may also be covered. The FSCS only pays compensation for financial loss. Compensation limits are per person per firm, and per claim category.

If a provider/firm is authorised by the UK financial services regulators then depositors will have access to the Financial Ombudsman Service and to the FSCS. You can find out whether a firm is authorised by using the Financial Services Register.

Cascade allows for eligible clients to optimise their cash holdings up to this limit across available banking licenses. This enables clients to protect their cash better, providing benefits should any market downturn place financial institutions at risk.

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