FSCS launches public awareness campaign

The Financial Services Compensation Scheme (FSCS) has launched a campaign to increase public awareness of the organisation.

The FSCS will advertise across television, the internet and the media to educate the public on the role and protection the FSCS provides. It also urges consumers to check how protection applies to their financial products by visiting the FSCS website and talking to their providers and advisors.

The campaign is supported by the Bank of England, HM Treasury and Financial Services Authority. It also has the backing of several high street banks, building societies, insurance providers and IFA networks.

Research commissioned by the FSCS found that despite record payouts during the financial crisis there is a lack of consumer awareness of the protection available should their authorised financial services firm go bust.

Research carried out in November 2010 suggests that only 47% of people are aware of the existence of a compensation scheme.

The same research also found that 33% of consumers are increasingly turning to financial advisers, friends or relatives for advice on financial products, up from 25% in September 2009.

Mark Neale, chief executive of the FSCS, said: “We are launching this campaign to make sure consumers know the circumstances under which their savings and investments are protected. We want consumers to check how FSCS protection applies to their own individual circumstances and be reassured that their money is safe.”

Maggie Craig, director general of the Association of British Insurers, said: “It is important that customers have full confidence in financial institutions, and know that their money is protected in the unlikely event that the company they bought a policy from, or started saving with gets into financial difficulty. Raising awareness of the Financial Services Compensation Scheme is a good way to reassure our customers and build trust in financial services.”