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Application provision

9.1 This Chapter applies only to the FSCS.



This Chapter applies only to the FSCS.



The FSCS must pay compensation in respect of eligible deposits within the applicable time period and as soon as reasonably practicable after:

  1. (1) it is satisfied that the conditions in 3.2 have been met; and
  2. (2) it has calculated the amount of compensation due to the compensation recipient.



The applicable time period referred to in 9.2 is the period starting on the day following the compensation date and ending:

  1. (1) until 31 December 2018: twenty business days later;
  2. (2) from 1 January 2019 until 31 December 2020: fifteen business days later;
  3. (3) from 1 January 2021 until 31 December 2023: ten business days later;
  4. (4) from 1 January 2024: seven business days later;

unless 6.2(5) applies, or the FSCS reasonably believes that it may, in which case it ends three months later.

Additional Notes

[Note: Art. 8(1), (2) and (3) of the DGSD]



The FSCS may decide to defer the payment of compensation beyond the time period set out in 9.3 where:

  1. (1) it is uncertain whether a person is entitled to receive compensation;
  2. (2) the deposit is subject to a legal dispute;
  3. (3) the deposit is subject to restrictive measures imposed by national governments or international bodies;
  4. (4) there has been no transaction on the account within the last 24 months;
  5. (5) the amount to be repaid is deemed to be part of a temporary high balance, in which case 10.8 applies;
  6. (6) the amount to be repaid is to be paid out by the host state scheme; or
  7. (7) the depositor or the compensation recipient has been charged with an offence arising out of or in relation to money laundering.

Additional Notes

[Note: Art. 8(5) and (8) of the DGSD]



The FSCS may decide not to pay compensation where there has been no transaction on the account in which the deposit is held within the 24 months prior to the compensation date and the amount of the deposit is lower than the administrative costs that would be incurred by the FSCS in paying compensation.

Additional Notes

[Note: Art. 8(9) of the DGSD]



  1. (1) From 1 June 2016 until 31 December 2023, in cases to which 9.2 applies, where the FSCS cannot pay compensation within seven business days starting on the day following the compensation date, the FSCS shall, provided it receives sufficient information to enable it to make a payment, ensure that within five business days of receipt of a request from a depositor:
    1. (a) the depositor who is an individual, has access to an appropriate amount of their covered deposits to cover the cost of living; and
    2. (b) the depositor which is not a large company, or is a small local authority, has access to an appropriate amount of their covered deposits to cover necessary business expenses.
  2. [Note: Art 8(4) of the DGSD]
  3. (2) [deleted]
  4. (3) In 9.6 the following definition shall apply:
    1. large company
    2. means a body corporate which does not qualify as a small company under section 382 of the Companies Act 2006.