Post by albermarle on Apr 14, 2018 18:12:36 GMT
I would like if possible for someone ( cleverer than me 
) to clarify the rules about FSCS compensation when it comes to investments ( not bank deposits where the situation is clear )
From what I can understand from Google, straightforward investment losses are not covered ( obviously ), but if a regulated provider of the investments is unable to pay back the investment, due to financial problems, fraud etc the you can claim up to £50K. This can also apply if you are given very bad advice from an IFA .
However investors in P2P platforms that are fully regulated by the FCA , seem to be not covered by this for platform failure /fraud etc . I do not understand why some 'regulated investment firms ' have this safety net , and some ( like P2P platforms ) do not ? Seems like a very grey area .....
) to clarify the rules about FSCS compensation when it comes to investments ( not bank deposits where the situation is clear )From what I can understand from Google, straightforward investment losses are not covered ( obviously ), but if a regulated provider of the investments is unable to pay back the investment, due to financial problems, fraud etc the you can claim up to £50K. This can also apply if you are given very bad advice from an IFA .
However investors in P2P platforms that are fully regulated by the FCA , seem to be not covered by this for platform failure /fraud etc . I do not understand why some 'regulated investment firms ' have this safety net , and some ( like P2P platforms ) do not ? Seems like a very grey area .....