The FSCS was set up mainly to help private individuals, including sole traders, but depositors and investors in small companies are also covered. A small company is defined as one that meets at least two of the following criteria:

• A turnover of no more than £6.5 million (£5.6 million for accounting periods that started before 6 April 2008).
• A balance sheet total of no more than £3.26 million (£2.8 million for periods starting before 6 April 2008).
• No more than 50 employees.

Large companies are generally excluded, though some claims in respect of compulsory insurances may be covered. Partnerships and unincorporated associations are excluded if they have net assets of more than £1.4 million. Trusts are covered in a similar way to individuals.

Whether a charity is covered depends on how it is constituted. If a charity is a limited company, it will be covered if it qualifies as a small company. If it is an unincorporated association, its net assets must not exceed £1.4 million.

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