Financial Services Compensation Scheme

The new Lloyds Banking Group

You may be aware that Halifax is part of HBOS plc.  HBOS has been acquired by Lloyds TSB.

In joining together HBOS and Lloyds TSB, we have created a new group company – Lloyds Banking Group.

Halifax will continue to exist and operate separately within this group, as will other well known High Street names such as Lloyds TSB and Bank of Scotland.

Added peace of mind from the Financial Services Compensation Scheme
The Financial Services Compensation Scheme provides customers with extra peace of mind that their money is safe.

Bank of Scotland plc and Lloyds TSB savings continue to be covered separately under this scheme, as both organisations are covered by separate banking licences.  Should there be any changes to our banking licences in future, we will contact you to tell you about them in the usual way.

Some more detailed Questions & Answers on the compensation scheme are outlined below:

What is the Financial Services Compensation Scheme?
The Financial Services Compensation Scheme (FSCS) can pay compensation to consumers in the event that an authorised financial services firm is unable to pay back customers' money and generally cannot meet claims made by customers against it.
The FSCS is an independent body set up under the Financial Services & Markets Act 2000. The scheme applies to different products in different ways.

How much of my money in my Halifax accounts would be protected by the FSCS?
You can currently claim up to £50,000 in compensation for your money held in savings and current accounts. If your money is in a joint account, each of you can claim up to £50,000.
That means that if there are two of you on the account you are jointly protected for up to £100,000 compensation. The FSCS assumes that the money is owned equally between the account holders (unless evidence shows otherwise).

Is my child’s Halifax account in a Trustee’s name covered?
Yes. Where a trustee holds an account in trust for another person, like a child, then the trustee will have a claim against the scheme for the trust. That claim will be treated separately to any claim the trustee makes for any accounts in their own name.

What about my money in accounts in other Bank of Scotland plc and Lloyds TSB divisions?
Under the Financial Services Compensation Scheme you are covered separately for the deposits you have with each separately licensed bank.

Bank of Scotland plc and Lloyds TSB savings continue to be covered separately under this scheme, as both organisations are covered by different banking licences.  Should there be any changes to our banking licences in future, we will contact you to tell you about them in the usual way.

Deposits with us are held with Bank of Scotland plc and are covered by the Bank of Scotland banking licence.

£50,000 (£100,000 for joint accounts) is the maximum compensation you could get for all of your money held in bank accounts or savings accounts with Bank of Scotland plc.

Accounts with Bank of Scotland plc include accounts with its divisions and trading names: Halifax, Intelligent Finance (IF), Birmingham Midshires (BM Savings), Bank of Scotland, Bank of Scotland Private Banking, Bank of Scotland Germany, Bank of Scotland The Netherlands, Bank of Scotland Treasury, St James's Place Bank and St James's Place Private Bank. Some savings accounts under AA Savings, Saga and Charities Aid Foundation brand names are also deposits with Bank of Scotland plc. An eligible depositor's £50,000 limit relates to the combined amount under all of these names.

If you are unsure whether your account is held with a Bank of Scotland plc, please check your account literature.

Lloyds TSB has three core licensed banks operating on the high street, Lloyds TSB Bank, Lloyds TSB Private Banking and Lloyds TSB Scotland, plus two further licences for subsidiaries, Agricultural Mortgage Corporation Bank and Scottish Widows Bank.

Are my investment products protected by the FSCS?
As well as protection for bank accounts and savings the scheme also provides protection in the event an FSA authorised company cannot meet claims made against it in relation to investment and long-term insurance products.

The actual level of compensation a client would receive will depend on the basis of their claim.  The Financial Services Compensation Scheme will consider each claim individually at the time it is made. FSCS can only pay compensation for financial loss and there are limits to the amounts of compensation the FSCS can pay.  Maximum FSCS compensation limits are per person (per provider firm and per category of claim).

Investments category – Open-Ended Investment Company (OEIC)
Most type of investment business are covered up to a maximum limit of £50,000
For Investment and Long-term insurances claims, customers would be covered per person, per separately authorised institution so you can make multiple claims – one per product category per each FSA authorised institution which is a member of the scheme.   The separately authorised institutions within Lloyds Banking Group are: Halifax Life Limited, St Andrew's Life Assurance plc, Clerical Medical Investment Group Limited, HBOS Investment Fund Managers Limited, Clerical Medical Investment Fund Managers Ltd, Scottish Widows plc, Scottish Widows Unit Trust Managers, Scottish Widows Bank and Scottish Widows Investment Partnership.

Long-term insurance category
The limit for Long-term insurance (e.g. pensions and life assurance) is as follows: Insurance advising and arranging is covered for 90% of the claim, without any upper limit. Personal Investment Plan, Guaranteed Investment Plan, Guaranteed Growth Bond, Investment Bond and Halifax Bonus Bond, Stakeholder Pension, Flexible Protection Plan all fall under the long-term insurance category as they are life assurance products and not classed as Investments under the scheme rules.

For Investment and Long-term insurances claims, customers would be covered per person, per separately authorised institution so you can make multiple claims – one per product category per each FSA authorised institution which is a member of the scheme. The separately authorised institutions within Lloyds Banking Group are: Halifax Life Limited, St Andrew's Life Assurance plc, Clerical Medical Investment Group Limited, HBOS Investment Fund Managers Limited, Clerical Medical Investment Fund Managers Ltd, Scottish Widows plc, Scottish Widows Unit Trust Managers, Scottish Widows Bank and Scottish Widows Investment Partnership.

Where can I find out more about the Financial Services Compensation Scheme?
If you have any questions about the FSCS (in particular, on requirements for compensation) more information can be found on the FSCS website www.fscs.org.uk

Additional Needs
We are committed to meeting the needs of all our customers. If you have a hearing or speech impairment contact us using Textphone 0845 732 3436 (lines open 9am – 5.30pm, 7 days a week). For visually impaired customers, we can provide documents in large print, Braille or on audio cassette. Please speak to a member of staff.

Customer Complaints
We aim to please – but we know that sometimes things go wrong. If you have a problem or complaint we want to know. In most cases this can be dealt with at your branch.

If your complaint is not resolved to your satisfaction, then ring our Customer Complaints Helpline on 0845 7253 519. A copy of our complaints procedure is available on request.  Complaints we cannot settle may be referred to the Financial Ombudsman Service.