The UK Deposit Guarantee Scheme (DGS) Administration, known as the Financial Services Compensation Scheme (FSCS), is a statutory body designed to protect account holders in the event of a bank failure. When an authorised financial institution becomes insolvent, the FSCS steps in to reimburse depositors for their lost funds up to a specified limit, currently £85,000 per person per institution. Deposit insurance is crucial to maintain public confidence in the financial system, as it offers a safety net for depositors and reduces the risk of bank runs during periods of financial instability.

The FSCS’s deposit guarantee scheme not only safeguards account holders, but also contributes to the overall stability of the UK financial system. By ensuring that customers have access to their funds even when a bank collapses, the DGS helps to prevent panic-induced withdrawals that could otherwise lead to a widespread banking crisis. Moreover, deposit insurance encourages competition among banks, as smaller institutions can attract deposits without the perceived risks associated with their size.

The organisational structure of the FSCS comprises a board of directors responsible for strategic decisions and oversight. The board is led by a non-executive chairman and includes both executive and non-executive directors with expertise in various aspects of the financial industry. The day-to-day operations are managed by the Chief Executive Officer and their executive team. For further information, you can contact the FSCS by visiting their website at, calling their helpline at +44 (0)20 7741 4100, or writing to Financial Services Compensation Scheme, PO Box 300, Mitcheldean, GL17 1DY.