New FSCS limits: What advisers should know
2nd December 2025
On 1st December 2025, the UK regulator increased the deposit protection limit under the Financial Services Compensation Scheme ('FSCS') from £85,000 to £120,000 per eligible person, per authorised firm.
The new limit applies only to deposits. That means the maximum compensation for deposit accounts, such as bank or building society accounts, has increased to £120,000. For other products, such as pensions, mortgages and insurance policies, the maximum compensation remains at £85,000.
Why has the deposit limit increased?
- The previous limit of £85,000 has been in place since 2017. Rising living costs have eroded the real value of that protection over time.
- The update reflects a statutory review the Prudential Regulation Authority (PRA) is required to perform every five years under the Deposit Guarantee Scheme Regulations.
What does it mean for our plans?
First and foremost, it's important to distinguish between our deposit-based plans and our investment-based plans, as they each benefit from very different FSCS protection.
- Our deposit plans are covered by the FSCS. This means that if the deposit taker were to fail, investors may be able to claim compensation to cover their losses (up to a maximum limit of £120,000 and subject to their eligibility).
- Our investment plans are NOT covered by the FSCS. This means that if the issuer were to fail, investors cannot claim any compensation to cover their losses.
However, regardless of whether an investor has bought one of our deposit or investment plans, they may be entitled to FSCS compensation if:
- They suffer a loss because of something that we or Dura as Plan Manager have done or failed to do.
- The bank holding their money before the Start Date or after the Final Maturity Date becomes insolvent and that results in a loss.
| Are eligible investors covered if: | Deposit plan | Investment plan |
| - the Deposit Taker / Issuer fails? | Yes, up to £120,000 | No |
| - something we do (or neglect to do) as plan manager results in a loss? | Yes, up to £120,000 | Yes, up to £85,000 |
| - the bank holding their money before the Start Date / after the Final Maturity Date fails? | Yes, up to £120,000 | Yes, up to £120,000 |