3rd February 2006
The FSCS is the UK's fund of last resort for customers of financial services firms and may be able to pay compensation if a firm is unable to pay claims against it.
We appreciate that consumers will be worried about what is happening with BFS Investments Plc (BFS). We are talking to the joint liquidators of this firm to determine our potential involvement and are in close contact with both the FSA and the Financial Ombudsman Service (FOS) about potential claims that may fall within our protection.
At this stage, we are not asking investors in BFS products to contact us directly. If you believe that you have a claim against this firm, you should contact the joint liquidators, Grant Thornton, at the address below:
Grant Thornton House
020 7383 5100
The other joint liquidators are:
SPW Poppleton and Appleby
239 Regents Park Road
Advice for consumers
The role of FSCS
FSCS was set up under the Financial Services and Markets Act 2000 (FSMA) and covers deposits, insurance, investments and mortgage business. FSCS is an independent body. The service is free to consumers.
As a fund of last resort, FSCS is only able to consider claims against a regulated firm that it considers is 'in default'. A declaration of default will be made if a firm is unable (or likely to be unable) to pay claims made against it, and there are claims which are eligible for compensation from FSCS.
The rules for FSCS are made by the by the Financial Services Authority (FSA), the UK's independent watchdog set up to regulate the financial services industry in the UK and protect the rights of consumers. FSCS can pay compensation only for financial loss, and only in accordance with our rules. There are limits to the amounts of compensation FSCS can pay.