420.This Part of the Act provides for a single Financial Services Compensation Scheme, established by the Authority and managed by an independent scheme manager.  It gives the Authority powers to specify the regulated activities covered by the scheme.
421.The purpose of the compensation scheme is to compensate customers who suffer loss in various circumstances as a consequence of the inability of an authorised person to meet its liabilities.  The scheme is not, other than in cases of the insolvency of an authorised person, intended to provide compensation for a regulatory breach (for example the mis-selling of investments), where the liability would remain with the authorised firm.
Commentary on Sections Part Xv: the Financial Services Compensation Scheme