Beware of investments offering high returns. Only invest if you’re prepared, and can afford, to lose all your money. Find out what you need to know before investing. Both the provider and the product or service need to be regulated for you to be protected.
If you have an investment with a firm that’s failed, you might be eligible to claim compensation with FSCS.
To qualify, there are some conditions that need to be met:
- The investment provider or adviser needs to have been authorised by the Prudential Regulation Authority or the Financial Conduct Authority to carry out a type of regulated activity that FSCS can protect - check this on the FCA register.
- The firm should no longer have enough funds to meet your compensation claim.
- If your claim is about negligent advice, the advice must have been given on or after 28 August 1988, the firm must have been authorised at the time, and you must have lost money after acting on the advice you were given.
- You must be owed a civil liability in relation to the regulated activity (e.g. the advice was negligent). We do not cover poor investment performance.
- If a firm fails holding client money or assets in connection with a type of regulated activity that FSCS can cover, we can compensate if there is a shortfall in your client money/assets.
- The activity and product must have been regulated.
- You must be an eligible claimant. Generally, individuals and small businesses are eligible.
Read about our rules for small businesses, ltd companies and charities regarding investment claims.
We may be able to compensate you if you've a protected claim against a firm that has failed.
- up to £85,000 per eligible person, per firm.
- up to £50,000 per eligible person, per firm.