FSCS can help consumers claim up to £48k in compensation

Consumers can claim compensation of up to £48,000 if they have lost money as a result of their dealings with any one of 45 firms that the Financial Services Compensation Scheme (FSCS) has recently declared in default.

FSCS is the UK’s statutory compensation scheme for customers of regulated financial services firms. It provides a free service to consumers.

Declaring a firm in default is the final part of a process in which an FSA regulated firm (such as a financial adviser) has been found by FSCS to be unable, or likely to be unable to pay claims against it. This means that customers who have lost money as a result of dealings with one of these firms can make a claim for compensation to FSCS.

"FSCS’s primary role is to help people who have lost money after doing business with an authorised firm if that firm is unable to meet claims made against it," says Loretta Minghella, Chief Executive. “It is important that customers of any of the 45 firms we have recently declared in default are aware that FSCS may be able to help, if they have suffered a financial loss.”

The kinds of investment claims FSCS handles usually relate to advice – for example, if somebody has been advised to buy an investment product such as an endowment policy, but it was unsuitable for them and they have lost money as a result of the advice they received. FSCS can also pay compensation for financial loss arising from negligent investment management and fraud, or if an authorised investment firm stops trading and cannot return its customers’ investments or money.

A list of the 45 investment firms FSCS has recently declared in default is attached. Consumers who believe they may have a claim should contact FSCS on 020 7892 7300, or by email at enquiries@fscs.org.uk. Further information about FSCS’ work is available from its website at fscs.org.uk.

FSCS covers investments, deposits, insurance, mortgage advice and arranging (from 31 October 2004), and advice about general insurance and the arranging of policies (from 14 January 2005).