On 15 July 2022, the Bank of England (BoE) published an updated memorandum of understanding (MoU) between itself and the Financial Services Compensation Scheme (FSCS). The Scheme exists to provide protection for eligible customers of failed financial services firms and is established under the Financial Services and Markets Act 2000 (FSMA).
The MoU sets out the framework agreed between the PRA and FSCS. It had been agreed under section 217A(1) and (2) of the FSMA. It replaces the previous MoU which was adopted in 2013 and amended in 2019 and does not affect any arrangements under other MoUs. This is separate from the Cooperation Protocol between the BoE (acting as a resolution authority) and the FSCS.