Investment Compensation Going Up

Published / Last Updated on 02/11/2017

Investor CompensationInvestment Compensation Going Up.

The FCA has proposed increasing the compensation protection limits by 65% for investments.

Most people will be aware that the level of compensation for cash deposits in bank and building societies in the UK under the Financial Services Compensation Scheme is £85,000 per account holder.  This means that for individuals you should have no more than £85,000 invested per bank and for couples £170,000.

100% Pensions and Life Insurance

Many people are not aware that for long term insurance based products such as *pensions and life insurance is it 100% with no upper limit. 

*It is important to note that if you have a normal personal or private pension then that falls within this 100% protected.  If you have a SIPP (Self Invested Personal Pension) and you are not invested in long term insurance based funds but say in shares or an OEIC or collective investment or unit trust/investment trust inside your SIPP then these are SEPARATE investments and covered by investment compensation limits below.

£50,000 for Investments

Investments such as funds inside an ISA, shares, OEICs, investment accounts, unit trusts, investment trust etc.  The maximum level of compensation for claims against investment firms is just £50,000 per person per firm.

Given the huge amounts of savings that are now building up in many people’s investment accounts, the FCA has proposed to increase the protection limit from £50,000 per person to £85,000.


About time too. Too many people are not even aware of or do not think that their investments may only have £50,000 protection but don’t forget this is per investment per person.