Commonwealth Financial Claims Scheme - definition & overview
Contents
What is The Commonwealth Financial Claims Scheme or 'FCS'?
The Commonwealth Financial Claims Scheme (FCS) is an Australian Government program that safeguards deposits and certain insurance policies in the unlikely event of a financial institution failing. It acts as a safety net for consumers.
How does the Commonwealth Financial Claims Scheme (FCS) work?
- Protects:
- Deposits held with authorized deposit-taking institutions (ADIs) like banks, building societies, and credit unions incorporated in Australia. Coverage is up to $250,000 per account holder, per ADI.
- General insurance policyholders and claimants – up to $5,000 per policy, with eligibility for higher amounts under specific circumstances.
- Activation: Only comes into effect if the Australian Government triggers it when a financial institution fails.
- Administration: Managed by the Australian Prudential Regulation Authority (APRA) once activated.
- Goal: Aims to return protected deposits to account holders within seven days of activation.
More information on the Commonwealth Financial Claims Scheme (FCS)
- Provides peace of mind for consumers about the security of their deposits and certain insurance policies.
- More information on the FCS, including a list of covered institutions and account types, can be found on the APRA website: Australian Prudential Regulation Authority - Financial Claims Scheme.
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