Commonwealth Financial Claims Scheme
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.
Contents
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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