Financial Services Compensation Scheme

Financial Services Compensation Scheme

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Under the terms of the FSCS if a company is to qualify for the scheme it has to be regarded as not large per s382 CA 2006. Quite confusingly 'not large' means anything other than a small company, i.e two out of three of turnover <£6.5m net, total assets or liabilities <£3.26m and <50 employees.

So any company which is medium or large for the purposes of CA 2006 doesn't therefore qualify for the protection of the FSCS. Is there anything preventing the formation of a new subsidiary company which will simply hold the deposits and earn interest thereon? As long as it remains within the above thresholds it seems like it would it qualify for the FSCS protection?

Does anyone have any experience on this?

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