For detailed information on the Financial Claims Scheme go to the FCS website: www.fcs.gov.au
The Financial Claims Scheme (FCS) is an Australian Government scheme that protects depositors of authorised deposit-taking institutions (banks, building societies and credit unions) and policyholders of general insurance companies from potential loss due to the failure of these institutions. If the FCS is activated by the Australian Government APRA would be responsible for administering the Scheme.
Authorised deposit-taking institutions (ADIs)
For banks, building societies and credit unions incorporated in Australia, the FCS provides protection to depositors up to $250,000 per account-holder per ADI. The Scheme seeks to provide depositors with timely access to their protected deposits in the unlikely event of the failure of their ADI.
For general insurers, the Scheme provides compensation to eligible policyholders with valid claims against a failed general insurer. Under the FCS, most policyholders with the affected general insurer are covered for valid claims up to $5,000. For any valid claims of $5,000 and over, the policyholder or claimant must be eligible under certain criteria.
For information on various aspects of APRA's prudential framework for the Financial Claims Scheme for authorised deposit-taking institutions see: Prudential framework for the FCS for ADIs