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Awareness of FSCS needs boosting, say MPs

Awareness of FSCS needs boosting, say MPs

Category: Money

Updated: 15/05/2012
First Published: 15/05/2012

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Better information about the Financial Services Compensation Scheme (FSCS) would improve public confidence in their savings, MPs have said.

Currently, savers' money is completely covered up to £85,000 by firms who are part of the FSCS, with all of the UK 's major providers part of the scheme.

It means that savers would get their money back in the unlikely event that a provider went out of business.

But there are worries that not enough is being done to make people aware of the initiative – despite a recent advertising campaign.

Almost 80% of MPs surveyed in a ComRes poll for the compensation scheme supported requiring firms to tell people about FSCS protection when selling relevant products and services.

In addition, 77% of MPs from across the political spectrum agreed financial services firms should have to display information about FSCS prominently in branch or at the point of sale.

It is a widely held view that the FSCS is vital to ensure public confidence in financial services, with only 4% of MPS saying they disagreed.

But there a recognition that more must be done to make the public more aware of the scheme

"FSCS makes an important contribution to consumer confidence and MPs recognise the important work we do to protect consumers," Mark Neale, chief executive of the scheme, said.

"Interestingly, MPs also agree that the industry needs to do more to make people aware of the protection FSCS provides, particularly in branch and at the point of sale.

"We are working with the industry on the next phase of our consumer awareness programme, including providing clear sign posting of FSCS in banks, building societies and credit unions.

"We hope the industry will embrace this work which will benefit consumers and firms alike."

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