The Financial Service Compensation Scheme (“FSCS”) is an independent body set up by government under the Financial Services and Markets Act 2000. It is the official body that can pay you compensation if a financial services provider authorised by the Financial Services Authority fails (known as being ‘in default’) and you lose money as a result. UBS AG is authorised and regulated by the FSA.

Limits apply to how much compensation you may be able to receive, and those limits vary depending on the types of financial products for which you are claiming compensation.

The FSCS groups products into four different categories - the different limits are set out below.

Deposits
This covers money in current accounts, savings accounts, etc. If your bank, building society or credit union is unable to return the money in your account to you because it’s in default, you may be entitled to deposit compensation.

Compensation limit
£85,000 per person per authorised firm (for claims against firms declared in default from
31 December 2010).

Compensation limits apply to individuals not accounts. This means that for joint accounts the limit applies to each named account-holder. So for example, if you have a joint account with your spouse or partner, you could each make a claim of up to £85,000 under the deposit limits.

Investments
The FSCS can pay compensation to consumers who lose money because of bad or misleading advice, negligent management of investments, misrepresentation or fraud, and the firm concerned has gone out of business and cannot return your investments or money owed. The FSCS does not pay compensation for losses arising solely from investment performance.

Compensation limit
£50,000 per person per firm for claims against firms declared in default from 1 January 2010. For firms declared in default before that date the maximum level of compensation for claims is 100% of the first £30,000 and 90% of the next  £20,000, up to £48,000 per person per firm.

Home Finance (Mortgages)
The FSCS can pay compensation if a firm has advised you to enter into a mortgage agreement that was not suitable for you, you lost money as a result, and the firm concerned goes out of business and cannot return money owed to you.

Compensation limit
£50,000 per person per firm for claims against firms declared in default from 1 January 2010. For firms declared in default before that date the maximum level of compensation for claims is 100% of the first £30,000 and 90% of the next £20,000, up to £48,000 per person per firm.

Insurance Broking
The FSCS can pay compensation if you were mis-sold an insurance policy and lost money, or if you were a victim of fraud. We don’t cover policies on marine, aviation, transport business, credit insurance or reinsurance.

Compensation limit
The FSCS can pay compensation at the level 90% with no upper limit. Compulsory insurance, like third-party motor insurance, is protected in full.