Financial Services Compensation Scheme  

FSCS launches campaign urging savers to check protections

FSCS launches campaign urging savers to check protections

The Financial Services Compensation Scheme has called on comedian David Mitchell to front its new campaign promoting the importance of checking whether pensions and investments products are FSCS protected.

The lifeboat scheme’s campaign highlights the importance of checking that new and existing pensions and investments products are FSCS protected. 

The FSCS told FTAdviser it had focused on pensions and investments as these products were experiencing some of the greatest increases in volume and complexity of claims. 

According to the lifeboat scheme, as people approached retirement it was even more important that they understood the scope and level of FSCS coverage if something goes wrong. 

It also reiterated that it was not “seeking to influence product choice”, but instead wants to encourage “healthy consumer behaviour through understanding”.

The FSCS said: “Ultimately, we want our target audience (who lean towards the older end of society) to feel more empowered and confident in checking protection specific to their provider and product.”

David Mitchell, British comedian, actor, writer and television presenter who currently works for the BBC as a team captain on the TV series 'Would I Lie to You?', was chosen to lead the campaign as he is a personality recognised by the audience the FSCS is trying to reach.

The campaign is running in several stages throughout 2021-22, with the first burst of activity running from 29 March until the end of May. 

The campaign is currently live across radio, video on demand (including ITV Hub and All 4), social media and print magazines.

The FSCS did not state how much the campaign cost in itself but said it is covered by its overall marketing budget, which is £2.6m and has remained flat for about four years.

Advisers have seen their FSCS bill rocket in recent years due to firm failures and rising claims in the pensions and investments market.

The total industry levy is expected to rocket to £1bn for 2021-21 – marking a 48 per cent rise on the previous year.  

Advice firms are expected to contribute £240m, the same as last year, due to the fact the class is forecast to breach its funding limits for the second year in a row.

Last year, alongside failures such as Greyfriars Asset Management and Pointon York, the lifeboat scheme saw more compensation pay-outs to customers resulting from the failure of London Capital & Finance. 

There has also been an increase in pension advice claims and additional costs in relation to the transfer of cash and assets from investment firms.

amy.austin@ft.com

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