Does the FSCS protect client deposits larger than £85,000?

I recently set up a new conveyancing firm. Does the Financial Services Compensation Scheme (FSCS) offer any protection for sums deposited on behalf of clients which exceed £85,000?

The FSCS provides a £1 million protection limit for temporary high balances held with a bank, building society or credit union if such an institution fails.

Cover is related to specific life events and limited to natural persons only.

Proceeds resulting from specified life events are categorised as temporary high balances. This would include sums paid to the depositor in relation to:

“Real estate transactions (property purchase, sale proceeds, equity release) relating to a depositor's main or only residence (this only applies to a main residence and excludes buy-to-let properties or holiday homes)”

Deposits over £85,000 are protected for a period of up to six months from when the amount was first credited or from the moment a qualifying deposit became legally transferrable.

'Temporary' means that the deposit must have been credited to the account (or become legally transferable if that is later) no more than six months before the firm goes into default.

For further information, see our practice note on protection for client accounts or contact the Practice Advice Service.


While every effort has been made to ensure the accuracy of the information in this article, it does not constitute legal advice and cannot be relied upon as such. The Law Society does not accept any responsibility for liabilities arising as a result of reliance upon the information given.

Have you got a practice question?

Call the Practice Advice Service on 020 7320 5675 or email

The Practice Advice Service is staffed Monday to Friday from 9am to 5pm.

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