A Guide to the Financial Services Compensation Scheme

Keydata Investment Services is regulated by the Financial Services Authority and therefore covered by the Financial Services Compensation Scheme.

The Financial Services Compensation Scheme (FSCS) acts as a safety net for customers of financial firms. The FSCS is industry funded and covers deposits, insurance and investments. The FSCS covers business conducted by firms regulated by the Financial Services Authority (FSA), the UK’s regulator for the finance sector.

The FSCS can only pay compensation if a regulated firm is unable, or likely to be unable to pay claims against it. In general, this is when a firm goes out of business. Failures of banks, building societies, insurance companies and securities houses are fortunately rare but if the worst does happen, the FSCS is there to help.

There are limits to the amounts of compensation that the FSCS pay, and they can only pay compensation according to their own internal rules. For investment firms the compensation limit is up to £48,000 per person, that is 100% of the first £30,000 and 90% of the next £20,000.

The FSCS can be contacted at 7th Floor, Lloyds Chambers, 1 Portsoken Street, London E1 8BN. Helpline 0207 8927300 Fax 0207 8927301, Email: enquiries@fscs.org.uk or via their website: www.fscs.org.uk