FSCS can help consumers claim up to £50,000 in compensation
Consumers could claim up to £50,000 if they have lost money as a result of their dealings with any of the investment firms the Financial Services Compensation Scheme (FSCS) has recently declared in default.
The FSCS is the UK's statutory compensation scheme for customers of authorised financial services firms. It does not charge consumers for using its service.
Declaring a firm in default is the final part of a process in which a firm regulated by the Financial Services Authority has been found by the 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 might be able to make a claim for compensation to the Scheme.
"It is important that we let customers know that we may be able to help if they have lost money and the firm cannot pay. The FSCS's existence as a fund of last resort for consumers helps to maintain confidence in the sector by providing assistance to individuals who have suffered a financial loss who otherwise would have nowhere to turn," says Alex Kuczynski, interim Chief Executive.
The FSCS pays up to a maximum of £50,000 per person per firm for claims against firms declared in default on or after 1 January 2010. The maximum level of compensation for claims against firms declared in default before 1 January 2010 is 100% of the first £30,000 and 90% of the next £20,000 up to £48,000 per person per firm.
The types of investment claim that the FSCS usually handles 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.
A list of the investment firms the FSCS has recently declared in default can be found below.
Consumers who believe they may have a claim should contact the FSCS on 020 7892 7300, or by email at enquiries[at]fscs.org.uk. Further information about the FSCS's work and how to claim is available on its website at fscs.org.uk.