FSCS

badnewsman

How does FSCS work, where do they get their money from and in the event of total collapse of all banks, savings, financial organisations would saving and investments within the max. limit of £85k be protected

bowlhead99

They get their money from a levy from the entire financial services industry - all regulated entities contribute to a fund. https://www.fscs.org.uk/about-us/funding/

As it takes time to collect the money in, if they need some money quick they can borrow unlimited amounts from UK treasury.

In the event of a zombie apocalypse or "total collapse of all banks, savings and financial organisations" there would be little use in having any cash from FSCS transferred to your account, because neither you nor anyone else would have a bank at which a cheque could be cashed or electronic transfer received. You would probably be better grabbing some heavy objects and preparing for your neighbour coming busting through your window to steal your groceries.

dunstonh

where do they get their money 

A levy on financial firms funds the FSCS.

and in the event of total collapse of all banks, savings, financial organisations would saving and investments within the max. limit of £85k be protected

You won't care about money in that scenario.  You will either be dead already or soon to be dead.  The reduced numbers that survive will be bartering or killing others.

worldtraveller

Basically, if the FSCS facility ever became exhausted, crisis management arrangements would be triggered between HM Treasury, the Financial Services Authority (FSA) and the Bank of England (The Tripartite Authorities). The banks could, possibly, as just one possible example, be nationalised. I don't believe that there is any 100% firm policy as to exactly what would happen, but I expect there are various possible plan(s) in place, which would be considered at that time. However, if we ever got to that point, we'd probably all just give up anyway, as dunstonh implies!

Mind you, as I mentioned in an earlier post elsewhere, back during the 2008/09 financial crisis I opened, and have always kept open, an NS&I online savings account, with just £1 in it, just in case I was ever in the position when I believed I should urgently, and be able to quickly, move cash over from a bank(s).

tropic_of_Username017

bowlhead99 said:

In the event of a zombie apocalypse or "total collapse of all banks, savings and financial organisations" ... You would probably be better grabbing some heavy objects and preparing for your neighbour coming busting through your window to steal your groceries.

dunstonh said:

You will either be dead already or soon to be dead.  The reduced numbers that survive will be bartering or killing others.

IMHO, a better preparation for societal collapse would be making friends with my neighbours. Not that I expect societal collapse. And clearly, there are no advantages to making friends with neighbours if society doesn't collapse. So let's forget this idea

worldtraveller

tropic_of_Username017 said:

bowlhead99 said:

In the event of a zombie apocalypse or "total collapse of all banks, savings and financial organisations" ... You would probably be better grabbing some heavy objects and preparing for your neighbour coming busting through your window to steal your groceries.

dunstonh said:

You will either be dead already or soon to be dead.  The reduced numbers that survive will be bartering or killing others.

IMHO, a better preparation for societal collapse would be making friends with my neighbours. Not that I expect societal collapse. And clearly, there are no advantages to making friends with neighbours if society doesn't collapse. So let's forget this idea

Sure, but essentially, apparently, in todays crazy, selfish world, which I hate BTW, do they have any excess toilet rolls that they can give you!

evano

Before making savings or investment, we regularly are told to first check that the Company is registered with FCA and ensure it holds a current Banking licence. Having done this, I see that many companies have been removed from the list, for reasons not given.  As most investments are for longer term, what happens to the compensation promise if a bank/company is removed from the FCA listing after your investment is made, it could have been made several years before when it was regulated. Is the promise to pay compensation still valid and applicable, if confirmed the investment was made whilst being regulated? Does anyone know the position or have experience of this eventuality? Otherwise it suggests to me that the FSCS promise becomes meaningless.

AlanP_2

Do you have examples of those removed?

I would not expect an unauthorised entity to be within the scheme so not covered but am no expert,

dunstonh

Before making savings or investment, we regularly are told to first check that the Company is registered with FCA and ensure it holds a current Banking licence. Having done this, I see that many companies have been removed from the list, for reasons not given

As mentioned above, some examples would be a good idea as this would be rare with a banking licence.  Yet you say you have seen many.

As most investments are for longer term, what happens to the compensation promise if a bank/company is removed from the FCA listing after your investment is made, it could have been made several years before when it was regulated.

Investments are different to deposits.  Investments wouldn't have a banking licence in most cases.

. Is the promise to pay compensation still valid and applicable, if confirmed the investment was made whilst being regulated? 

It depends on the activity in question and whether it was a regulated activity and/or regulated investments.

Otherwise it suggests to me that the FSCS promise becomes meaningless.

It is not meaningless.  However, if you don't understand what is or isn't covered then it can be confusing.    Your post does indicate you are confused.   So, give some more info and let us help you.

csgohan4

your only going to need bullets or fuel when the world ends