I agree. Currently, organisations with full fat banking licences or the equivalent (banks, building societies and maybe a credit union or two) display a discreet FSCS logo.
I think that the regulations need to be changed so that any institution without FSCS coverage should be forced to display a large warning as part of each account opening process, that you have to specifically and separately accept, making clear that they don't have full regulatory supervision, don't have compensation available in the event of their insolvency, and if you want this FSCS coverage you should stop and go to a real bank/building society.
Loads of people quoted by various media outlets who have been locked out of their money don't seem to know:
- that they didn't have FSCS coverage, and in many cases
- that the FSCS exists and would cover them if they went with a "real" bank.