Anyone with an interest in financial markets will have looked back at 2008 (AKA the “Credit crunch”) and realised the economic shocks that can be caused by a bank “getting into financial trouble”. Think Northern Rock/RBS/NatWest and Lloyds for example getting into financial difficulty. Before 2008, I can remember no client ever worried a bank could go bust and we never had to explain the FSCS (Financial Services Compensation Scheme) to anyone.
Given the recent problems in Switzerland (Credit Suisse) and the US (Silicon Valley Bank) it may be a good time to reassure everyone as to how their money is protected.
Banks, investment, pension companies and yours truly (Financial Fortress Ltd) are all covered by the FSCS. You may be entitled to compensation from the FSCS if they/we cannot meet their/our obligations. This depends on the type of business and the circumstances of the claim.
• Most types of investment business are covered up to a maximum limit of £85,000. This includes bank deposits and rises to £1770,000 for joint accounts.
• Non-compulsory insurance business is covered for 90% of the claim, without any upper limit.
• 100% of compulsory insurance is covered.
• Long-term insurance and pensions are 100% protected with no upper limit.
Rest assured, we will NEVER EVER recommend a product or firm that is not protected by the FSCS, just part of the reassurance dealing with a reputable firm brings!
Read more about the FSCS here: https://www.fscs.org.uk/