Integrating EMIs into FSCS

by Sarbjit Klair

The Financial Services Compensation Scheme (FSCS) protects bank deposits up to the value of £85,000. This amount is authorised by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA). However, the FSCS cannot protect fund deposits if a payment processing or money firm fails. This article considers that payment processing firms operate as a bank and should be incorporated into the FSCS.