FSCS Compensation Route | Route 3 | Redress Advisory | Redress Advisory
No cold calls — ever No upfront cost 14-day right to cancel FCA CMC authorisation pending Free to claim direct via FOS or FSCS
Route 3 — Financial Services Compensation Scheme

Claiming from the FSCS when your firm has failed

If the firm that advised you has gone out of business, the FSCS exists to pay compensation in their place. Up to £85,000 per firm — and you may have claims against more than one firm.

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In plain English: The Financial Services Compensation Scheme (FSCS) is the UK’s safety net. When a regulated financial firm fails and cannot pay compensation it owes, the FSCS steps in and pays eligible claimants directly — up to £85,000 per firm. You apply to the FSCS and they pay you. The failed firm is not involved.

You may have more than one FSCS claim

Most DB pension transfers involved three separate regulated parties: (1) the adviser who recommended the transfer, (2) the Pension Transfer Specialist (PTS) who signed off the suitability report, and (3) the SIPP operator that accepted the transfer.

If more than one of these has been declared in default by the FSCS, you may have a separate £85,000 claim against each. Three defaulted parties = potential FSCS recovery of up to £255,000 before Route 4 applies. Our assessment identifies every party in your chain automatically.

How the FSCS process works

FSCS declares the firm “in default”

The FSCS formally declares a firm in default when it determines the firm cannot meet claims against it. This opens the FSCS claim window. Many firms are in default now — check our firm pages.

We prepare and submit your FSCS application

We compile your full FSCS application — evidence bundle, loss calculation using FCA DISP Appendix 4 methodology, and supporting documentation. We submit on your behalf.

FSCS assesses your claim (6–18 months)

The FSCS investigates the advice you received and calculates your compensatable loss. The assessment is based on the same FCA methodology we use in our initial estimate.

Compensation paid directly to you

The FSCS pays compensation directly into your bank account. We then invoice you for our agreed success fee. If the FSCS rejects your claim or awards less than expected, we review and advise on next steps.

How is my compensation calculated?

The FSCS uses FCA DISP Appendix 4 methodology for DB transfer cases. The calculation compares what your final salary pension would be worth today against the current value of your SIPP or personal pension. The difference is your compensatable loss — subject to the £85,000 cap per firm.

For a 10-year DB pension with a final salary of £32,000, the typical compensatable loss at current gilt yields is approximately £32,000–£52,000. If gilt yields fall, this figure rises significantly.

⚠  FSCS time limits

The FSCS claim window opens when a firm is declared in default. But the FOS time limits on the underlying advice run separately and may impose tighter deadlines. For firms recently declared in default (Heritage Pensions April 2026, Gaudi March 2026), the FSCS claim window is newly open. For older defaults, check both sets of time limits.

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Find out if you have an FSCS claim — and how many

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Takes under 3 minutes · No obligation · We will never cold-call you

Redress Advisory Ltd is applying for authorisation by the Financial Conduct Authority as a Claims Management Company (FCA reference: to be confirmed on authorisation). Company number: 17295681. Registered office: 20 Wenlock Road, London N1 7GU. Route 3 is managed directly by Redress Advisory. Compensation is paid directly to claimants by the FSCS.

Your rights and our fees — in plain English

You do not have to use us

You can complain directly to the firm, or refer to the Financial Ombudsman Service (FOS) or FSCS — both completely free. If you use the free routes, you keep 100% of any compensation awarded.

Our fees — success only, FCA capped
Redress received Max % Max fee
Up to £1,49930%£420
£1,500–£9,99928%£2,500
£10,000–£24,99925%£5,000
£25,000–£49,99920%£7,500
£50,000 and above15%£10,000

Compensation is paid directly to you. We invoice after you receive your compensation. You pay nothing if unsuccessful. Source: FCA PS21/18 (Chapter 2, Table 1) & CMCOB 5.2. Excl. VAT.

14-day right to cancel

If you sign a client agreement with us, you may cancel it within 14 days without any charge or obligation. No questions asked.

If you are unhappy with our service

Contact us at complaints@redressadvisory.com. If we cannot resolve your complaint you may refer it to the Financial Ombudsman Service free of charge within 6 months of our final response.