Deposit Protection Scheme

A scheme, since replaced by the Financial Services Compensation Scheme, designed to give limited financial protection to people with deposits in authorised banks which fail. Banks are authorised and supervised by the Financial Services Authority (FSA) and they are obliged to provide details of their deposit protection scheme and their claim procedures if requested by depositors. The FSCS brought together the Deposit Protection Scheme, the Building Society Investor Protection Scheme, the Policyholders Protection Scheme, the Friendly Societies Protection Scheme, the Investors Compensation Scheme and the Section 43 Scheme (which covered business transacted with listed money-market institutions).