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<br /> Financial Services Compensation Scheme<br /> Annual Report and Accounts<br /> 2016/17<br /> <br /> Financial Services Compensation Scheme<br /> Annual Report and Accounts<br /> 2016/17<br /> Presented to the House of Commons pursuant to Section 7 of the<br /> Government Resources and Accounts Act 2000<br /> Ordered by the House of Commons to be printed on 12 July 2017<br /> HC 218-i part i of ii<br /> An accompanying Financial Services Compensation Scheme Annual Report<br /> and Class Statements (part ii) was also presented to the House of Commons<br /> on 12 July 2017<br /> © Financial Services Compensation Scheme 2017<br /> The text of this document (this excludes, where present,<br /> the Royal Arms and all departmental or agency logos) may<br /> be reproduced free of charge in any format or medium<br /> provided that it is reproduced accurately and not in a<br /> misleading context.<br /> The m<a title="FSCS Annual Report and Accounts 2016-17 page 1" href="https://secure.viewer.zmags.com/publication/381260a7?page=1"> Financial Services Compensation Scheme Annual Rep</a> <a title="FSCS Annual Report and Accounts 2016-17 page 2" href="https://secure.viewer.zmags.com/publication/381260a7?page=2"> </a> <a title="FSCS Annual Report and Accounts 2016-17 page 3" href="https://secure.viewer.zmags.com/publication/381260a7?page=3"> Financial Services Compensation Scheme Annual Rep</a> <a title="FSCS Annual Report and Accounts 2016-17 page 4" href="https://secure.viewer.zmags.com/publication/381260a7?page=4"> © Financial Services Compensation Scheme 2017 The</a> <a title="FSCS Annual Report and Accounts 2016-17 page 5" href="https://secure.viewer.zmags.com/publication/381260a7?page=5"> 5 CONTENTS 01 Chairman’s Statement ..</a> <a title="FSCS Annual Report and Accounts 2016-17 page 6" href="https://secure.viewer.zmags.com/publication/381260a7?page=6"> 6 FSCS Annual Report and Accounts 2016/17 BUSI</a> <a title="FSCS Annual Report and Accounts 2016-17 page 7" href="https://secure.viewer.zmags.com/publication/381260a7?page=7"> Business Highlights 7 October 2016 W</a> <a title="FSCS Annual Report and Accounts 2016-17 page 8" href="https://secure.viewer.zmags.com/publication/381260a7?page=8"> </a> <a title="FSCS Annual Report and Accounts 2016-17 page 9" href="https://secure.viewer.zmags.com/publication/381260a7?page=9"> 01 Chairman’s Statement 9 01 CHAIRMAN’S STATEM</a> <a title="FSCS Annual Report and Accounts 2016-17 page 10" href="https://secure.viewer.zmags.com/publication/381260a7?page=10"> 10 FSCS Annual Report and Accounts 2016/17 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 11" href="https://secure.viewer.zmags.com/publication/381260a7?page=11"> 01 Chairman’s Statement 11 £11.8b</a> <a title="FSCS Annual Report and Accounts 2016-17 page 12" href="https://secure.viewer.zmags.com/publication/381260a7?page=12"> </a> <a title="FSCS Annual Report and Accounts 2016-17 page 13" href="https://secure.viewer.zmags.com/publication/381260a7?page=13"> 02 Chief Executive’s Review 13 02 CHIEF EXECUT</a> <a title="FSCS Annual Report and Accounts 2016-17 page 14" href="https://secure.viewer.zmags.com/publication/381260a7?page=14"> 14 FSCS Annual Report and Accounts 2016/17 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 15" href="https://secure.viewer.zmags.com/publication/381260a7?page=15"> 02 Chief Executive’s Review 15 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 16" href="https://secure.viewer.zmags.com/publication/381260a7?page=16"> </a> <a title="FSCS Annual Report and Accounts 2016-17 page 17" href="https://secure.viewer.zmags.com/publication/381260a7?page=17"> 03 Overview 17 STRATEGIC & PERFORMANCE REPORT </a> <a title="FSCS Annual Report and Accounts 2016-17 page 18" href="https://secure.viewer.zmags.com/publication/381260a7?page=18"> 18 FSCS Annual Report and Accounts 2016/17 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 19" href="https://secure.viewer.zmags.com/publication/381260a7?page=19"> 03 Overview 19 Our mission and strategy </a> <a title="FSCS Annual Report and Accounts 2016-17 page 20" href="https://secure.viewer.zmags.com/publication/381260a7?page=20"> 20 FSCS Annual Report and Accounts 2016/17 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 21" href="https://secure.viewer.zmags.com/publication/381260a7?page=21"> Raising awareness of the protection that we provi</a> <a title="FSCS Annual Report and Accounts 2016-17 page 22" href="https://secure.viewer.zmags.com/publication/381260a7?page=22"> 22 FSCS Annual Report and Accounts 2016/17 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 23" href="https://secure.viewer.zmags.com/publication/381260a7?page=23"> 03 Overview 23 Customer satisfactio</a> <a title="FSCS Annual Report and Accounts 2016-17 page 24" href="https://secure.viewer.zmags.com/publication/381260a7?page=24"> </a> <a title="FSCS Annual Report and Accounts 2016-17 page 25" href="https://secure.viewer.zmags.com/publication/381260a7?page=25"> 04 Delivering for our Customers 25 STRATEGIC &</a> <a title="FSCS Annual Report and Accounts 2016-17 page 26" href="https://secure.viewer.zmags.com/publication/381260a7?page=26"> 26 FSCS Annual Report and Accounts 2016/17 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 27" href="https://secure.viewer.zmags.com/publication/381260a7?page=27"> 04 Delivering for our Customers 27 Per cent (%)</a> <a title="FSCS Annual Report and Accounts 2016-17 page 28" href="https://secure.viewer.zmags.com/publication/381260a7?page=28"> 28 FSCS Annual Report and Accounts 2016/17 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 29" href="https://secure.viewer.zmags.com/publication/381260a7?page=29"> 04 Delivering for our Customers 29 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 30" href="https://secure.viewer.zmags.com/publication/381260a7?page=30"> 30 FSCS Annual Report and Accounts 2016/17 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 31" href="https://secure.viewer.zmags.com/publication/381260a7?page=31"> 04 Delivering for our Customers 31 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 32" href="https://secure.viewer.zmags.com/publication/381260a7?page=32"> 32 FSCS Annual Report and Accounts 2016/17 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 33" href="https://secure.viewer.zmags.com/publication/381260a7?page=33"> Independent Investigator 33 ANNUAL REPORT F</a> <a title="FSCS Annual Report and Accounts 2016-17 page 34" href="https://secure.viewer.zmags.com/publication/381260a7?page=34"> </a> <a title="FSCS Annual Report and Accounts 2016-17 page 35" href="https://secure.viewer.zmags.com/publication/381260a7?page=35"> 05 Being Ready to Respond 35 STRATEGIC & PERFO</a> <a title="FSCS Annual Report and Accounts 2016-17 page 36" href="https://secure.viewer.zmags.com/publication/381260a7?page=36"> </a> <a title="FSCS Annual Report and Accounts 2016-17 page 37" href="https://secure.viewer.zmags.com/publication/381260a7?page=37"> 06 Our People 37 STRATEGIC & PERFORMANCE REPOR</a> <a title="FSCS Annual Report and Accounts 2016-17 page 38" href="https://secure.viewer.zmags.com/publication/381260a7?page=38"> 38 FSCS Annual Report and Accounts 2016/17 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 39" href="https://secure.viewer.zmags.com/publication/381260a7?page=39"> 06 Our People 39 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 40" href="https://secure.viewer.zmags.com/publication/381260a7?page=40"> 40 FSCS Annual Report and Accounts 2016/17 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 41" href="https://secure.viewer.zmags.com/publication/381260a7?page=41"> 06 Our People 41 Overview of the c</a> <a title="FSCS Annual Report and Accounts 2016-17 page 42" href="https://secure.viewer.zmags.com/publication/381260a7?page=42"> 42 FSCS Annual Report and Accounts 2016/17 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 43" href="https://secure.viewer.zmags.com/publication/381260a7?page=43"> 06 Our People 43 Diversity and inc</a> <a title="FSCS Annual Report and Accounts 2016-17 page 44" href="https://secure.viewer.zmags.com/publication/381260a7?page=44"> </a> <a title="FSCS Annual Report and Accounts 2016-17 page 45" href="https://secure.viewer.zmags.com/publication/381260a7?page=45"> 07 Financial Review 45 STRATEGIC & PERFORMANCE</a> <a title="FSCS Annual Report and Accounts 2016-17 page 46" href="https://secure.viewer.zmags.com/publication/381260a7?page=46"> 46 FSCS Annual Report and Accounts 2016/17 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 47" href="https://secure.viewer.zmags.com/publication/381260a7?page=47"> 07 Financial Review 47 Our liquidi</a> <a title="FSCS Annual Report and Accounts 2016-17 page 48" href="https://secure.viewer.zmags.com/publication/381260a7?page=48"> 48 FSCS Annual Report and Accounts 2016/17 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 49" href="https://secure.viewer.zmags.com/publication/381260a7?page=49"> 07 Financial Review 49 Recoveries </a> <a title="FSCS Annual Report and Accounts 2016-17 page 50" href="https://secure.viewer.zmags.com/publication/381260a7?page=50"> 50 FSCS Annual Report and Accounts 2016/17 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 51" href="https://secure.viewer.zmags.com/publication/381260a7?page=51"> 07 Financial Review 51 Looking for</a> <a title="FSCS Annual Report and Accounts 2016-17 page 52" href="https://secure.viewer.zmags.com/publication/381260a7?page=52"> </a> <a title="FSCS Annual Report and Accounts 2016-17 page 53" href="https://secure.viewer.zmags.com/publication/381260a7?page=53"> 08 Corporate Governance 53 GOVERNANCE REPORT 0</a> <a title="FSCS Annual Report and Accounts 2016-17 page 54" href="https://secure.viewer.zmags.com/publication/381260a7?page=54"> 54 FSCS Annual Report and Accounts 2016/17 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 55" href="https://secure.viewer.zmags.com/publication/381260a7?page=55"> 08 Corporate Governance 55 Stateme</a> <a title="FSCS Annual Report and Accounts 2016-17 page 56" href="https://secure.viewer.zmags.com/publication/381260a7?page=56"> 56 FSCS Annual Report and Accounts 2016/17 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 57" href="https://secure.viewer.zmags.com/publication/381260a7?page=57"> 08 Corporate Governance 57 Board c</a> <a title="FSCS Annual Report and Accounts 2016-17 page 58" href="https://secure.viewer.zmags.com/publication/381260a7?page=58"> 58 FSCS Annual Report and Accounts 2016/17 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 59" href="https://secure.viewer.zmags.com/publication/381260a7?page=59"> 08 Corporate Governance 59 Attenda</a> <a title="FSCS Annual Report and Accounts 2016-17 page 60" href="https://secure.viewer.zmags.com/publication/381260a7?page=60"> 60 FSCS Annual Report and Accounts 2016/17 T</a> <a title="FSCS Annual Report and Accounts 2016-17 page 61" href="https://secure.viewer.zmags.com/publication/381260a7?page=61"> 08 Corporate Governance 61 Non-Execu</a> <a title="FSCS Annual Report and Accounts 2016-17 page 62" href="https://secure.viewer.zmags.com/publication/381260a7?page=62"> 62 FSCS Annual Report and Accounts 2016/17 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 63" href="https://secure.viewer.zmags.com/publication/381260a7?page=63"> 08 Corporate Governance 63 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 64" href="https://secure.viewer.zmags.com/publication/381260a7?page=64"> 64 FSCS Annual Report and Accounts 2016/17 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 65" href="https://secure.viewer.zmags.com/publication/381260a7?page=65"> 08 Corporate Governance 65 Notes: 1 T</a> <a title="FSCS Annual Report and Accounts 2016-17 page 66" href="https://secure.viewer.zmags.com/publication/381260a7?page=66"> 66 FSCS Annual Report and Accounts 2016/17 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 67" href="https://secure.viewer.zmags.com/publication/381260a7?page=67"> 08 Corporate Governance 67 Normal</a> <a title="FSCS Annual Report and Accounts 2016-17 page 68" href="https://secure.viewer.zmags.com/publication/381260a7?page=68"> 68 FSCS Annual Report and Accounts 2016/17 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 69" href="https://secure.viewer.zmags.com/publication/381260a7?page=69"> 08 Corporate Governance 69 Princip</a> <a title="FSCS Annual Report and Accounts 2016-17 page 70" href="https://secure.viewer.zmags.com/publication/381260a7?page=70"> 70 FSCS Annual Report and Accounts 2016/17 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 71" href="https://secure.viewer.zmags.com/publication/381260a7?page=71"> 08 Corporate Governance 71 Control</a> <a title="FSCS Annual Report and Accounts 2016-17 page 72" href="https://secure.viewer.zmags.com/publication/381260a7?page=72"> 72 FSCS Annual Report and Accounts 2016/17 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 73" href="https://secure.viewer.zmags.com/publication/381260a7?page=73"> 08 Corporate Governance 73 • The d</a> <a title="FSCS Annual Report and Accounts 2016-17 page 74" href="https://secure.viewer.zmags.com/publication/381260a7?page=74"> </a> <a title="FSCS Annual Report and Accounts 2016-17 page 75" href="https://secure.viewer.zmags.com/publication/381260a7?page=75"> 09 Directors’ Report 75 GOVERNANCE REPORT 09 D</a> <a title="FSCS Annual Report and Accounts 2016-17 page 76" href="https://secure.viewer.zmags.com/publication/381260a7?page=76"> 76 FSCS Annual Report and Accounts 2016/17 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 77" href="https://secure.viewer.zmags.com/publication/381260a7?page=77"> 09 Directors’ Report 77</a> <a title="FSCS Annual Report and Accounts 2016-17 page 78" href="https://secure.viewer.zmags.com/publication/381260a7?page=78"> </a> <a title="FSCS Annual Report and Accounts 2016-17 page 79" href="https://secure.viewer.zmags.com/publication/381260a7?page=79"> 10 Auditor’s Report 79 FINANCIAL STATEMENTS 10</a> <a title="FSCS Annual Report and Accounts 2016-17 page 80" href="https://secure.viewer.zmags.com/publication/381260a7?page=80"> 80 FSCS Annual Report and Accounts 2016/17 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 81" href="https://secure.viewer.zmags.com/publication/381260a7?page=81"> 10 Auditor’s Report 81 Risk </a> <a title="FSCS Annual Report and Accounts 2016-17 page 82" href="https://secure.viewer.zmags.com/publication/381260a7?page=82"> 82 FSCS Annual Report and Accounts 2016/17 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 83" href="https://secure.viewer.zmags.com/publication/381260a7?page=83"> 10 Auditor’s Report 83 The scope of my audi</a> <a title="FSCS Annual Report and Accounts 2016-17 page 84" href="https://secure.viewer.zmags.com/publication/381260a7?page=84"> 84 FSCS Annual Report and Accounts 2016/17 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 85" href="https://secure.viewer.zmags.com/publication/381260a7?page=85"> 10 Auditor’s Report 85</a> <a title="FSCS Annual Report and Accounts 2016-17 page 86" href="https://secure.viewer.zmags.com/publication/381260a7?page=86"> </a> <a title="FSCS Annual Report and Accounts 2016-17 page 87" href="https://secure.viewer.zmags.com/publication/381260a7?page=87"> 11 Financial Statements 87 11 FINANCIAL STATEM</a> <a title="FSCS Annual Report and Accounts 2016-17 page 88" href="https://secure.viewer.zmags.com/publication/381260a7?page=88"> 88 FSCS Annual Report and Accounts 2016/17 FIN</a> <a title="FSCS Annual Report and Accounts 2016-17 page 89" href="https://secure.viewer.zmags.com/publication/381260a7?page=89"> 11 Financial Statements 89 Statement of cas</a> <a title="FSCS Annual Report and Accounts 2016-17 page 90" href="https://secure.viewer.zmags.com/publication/381260a7?page=90"> 90 FSCS Annual Report and Accounts 2016/17 Not</a> <a title="FSCS Annual Report and Accounts 2016-17 page 91" href="https://secure.viewer.zmags.com/publication/381260a7?page=91"> 11 Financial Statements 91 As the pension </a> <a title="FSCS Annual Report and Accounts 2016-17 page 92" href="https://secure.viewer.zmags.com/publication/381260a7?page=92"> 92 FSCS Annual Report and Accounts 2016/17 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 93" href="https://secure.viewer.zmags.com/publication/381260a7?page=93"> 11 Financial Statements 93 K) PENSION SCHEM</a> <a title="FSCS Annual Report and Accounts 2016-17 page 94" href="https://secure.viewer.zmags.com/publication/381260a7?page=94"> 94 FSCS Annual Report and Accounts 2016/17 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 95" href="https://secure.viewer.zmags.com/publication/381260a7?page=95"> 11 Financial Statements 95 6 Compensation c</a> <a title="FSCS Annual Report and Accounts 2016-17 page 96" href="https://secure.viewer.zmags.com/publication/381260a7?page=96"> 96 FSCS Annual Report and Accounts 2016/17 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 97" href="https://secure.viewer.zmags.com/publication/381260a7?page=97"> 11 Financial Statements 97 9 Staff costs </a> <a title="FSCS Annual Report and Accounts 2016-17 page 98" href="https://secure.viewer.zmags.com/publication/381260a7?page=98"> 98 FSCS Annual Report and Accounts 2016/17 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 99" href="https://secure.viewer.zmags.com/publication/381260a7?page=99"> 11 Financial Statements 99 11 Receivables T</a> <a title="FSCS Annual Report and Accounts 2016-17 page 100" href="https://secure.viewer.zmags.com/publication/381260a7?page=100"> 100 FSCS Annual Report and Accounts 2016/17 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 101" href="https://secure.viewer.zmags.com/publication/381260a7?page=101"> 11 Financial Statements 101 The movements </a> <a title="FSCS Annual Report and Accounts 2016-17 page 102" href="https://secure.viewer.zmags.com/publication/381260a7?page=102"> 102 FSCS Annual Report and Accounts 2016/17 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 103" href="https://secure.viewer.zmags.com/publication/381260a7?page=103"> 11 Financial Statements 103 12 Cash and cas</a> <a title="FSCS Annual Report and Accounts 2016-17 page 104" href="https://secure.viewer.zmags.com/publication/381260a7?page=104"> 104 FSCS Annual Report and Accounts 2016/17 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 105" href="https://secure.viewer.zmags.com/publication/381260a7?page=105"> 11 Financial Statements 105 Non-current li</a> <a title="FSCS Annual Report and Accounts 2016-17 page 106" href="https://secure.viewer.zmags.com/publication/381260a7?page=106"> 106 FSCS Annual Report and Accounts 2016/17 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 107" href="https://secure.viewer.zmags.com/publication/381260a7?page=107"> 11 Financial Statements 107 PRINCIPAL TERMS</a> <a title="FSCS Annual Report and Accounts 2016-17 page 108" href="https://secure.viewer.zmags.com/publication/381260a7?page=108"> 108 FSCS Annual Report and Accounts 2016/17 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 109" href="https://secure.viewer.zmags.com/publication/381260a7?page=109"> 11 Financial Statements 109 16 Financial ri</a> <a title="FSCS Annual Report and Accounts 2016-17 page 110" href="https://secure.viewer.zmags.com/publication/381260a7?page=110"> 110 FSCS Annual Report and Accounts 2016/17 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 111" href="https://secure.viewer.zmags.com/publication/381260a7?page=111"> 11 Financial Statements 111 17 Reconciliati</a> <a title="FSCS Annual Report and Accounts 2016-17 page 112" href="https://secure.viewer.zmags.com/publication/381260a7?page=112"> 112 FSCS Annual Report and Accounts 2016/17 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 113" href="https://secure.viewer.zmags.com/publication/381260a7?page=113"> 11 Financial Statements 113 For the 31 Mar</a> <a title="FSCS Annual Report and Accounts 2016-17 page 114" href="https://secure.viewer.zmags.com/publication/381260a7?page=114"> 114 FSCS Annual Report and Accounts 2016/17 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 115" href="https://secure.viewer.zmags.com/publication/381260a7?page=115"> 11 Financial Statements 115 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 116" href="https://secure.viewer.zmags.com/publication/381260a7?page=116"> 116 FSCS Annual Report and Accounts 2016/17 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 117" href="https://secure.viewer.zmags.com/publication/381260a7?page=117"> 11 Financial Statements 117 £’000 Best est</a> <a title="FSCS Annual Report and Accounts 2016-17 page 118" href="https://secure.viewer.zmags.com/publication/381260a7?page=118"> 118 FSCS Annual Report and Accounts 2016/17 </a> <a title="FSCS Annual Report and Accounts 2016-17 page 119" href="https://secure.viewer.zmags.com/publication/381260a7?page=119"> </a> <a title="FSCS Annual Report and Accounts 2016-17 page 120" href="https://secure.viewer.zmags.com/publication/381260a7?page=120"> By phone on: 0800 678 1100 or 020 7741 4100 Lines</a>