The Financial Services Compensation Scheme (FSCS) is a scheme that protects savers and compensates them if their chosen savings provider ceases trading and is unable to return their funds. It is funded by the financial services industry as a whole, in the form of a levy paid by each UK authorised financial services firm. Any firm that is authorised by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) is covered by the FSCS. The scheme was set up under the Financial Services and Markets Act 2000 and became active on 1 December 2001.