FSCS Increases Compensation Limit on Investment Claims to £85,000
The Financial Services Compensation Scheme (FSCS) is a compensation scheme for customers of businesses previously regulated by the Financial Conduct Authority (FCA) that have now gone out of business and are unable to pay any compensation owed to their former clients.
Where the firm is unable or unlikely to pay claims against it, the FSCS will consider any complaints and pay any compensation due.
Up until April 1st 2019, the amount that the FSCS could pay out was capped at £50,000. From April 1st the compensation the FSCS can award to eligible Claimants has gone up to £85,000.
The new limit of £85,000 applies to claims where the firm responsible has been declared in default by the FSCS after April 1st 2019. Any claims which arise from firms which went in to default prior to this date will still be subject to the current limit of £50,000.
TLW Solicitors’ View
The financial mis-selling team at TLW welcome the increase in the compensation limits, however, we don’t feel that the new increase goes far enough.
For example, where a person has transferred a Final Salary (Defined Benefit) Pension, the losses for most people will be substantially more than even the new FSCS compensation limit of £85,000 and so those people are still left out of pocket, sometimes by tens of thousands of pounds.
TLW Solicitors can help you
For anyone who is successful in making a claim after losing money by transferring their pension, as well as being entitled to claim towards the amount which you invested, you may also be able to claim:
- Fees paid to the Independent Financial Adviser (IFA) and Self Invested Personal Pension (SIPP) company who arranged your investment;
- Money you would have made if your pension/savings had remained where they were.
If you think that you, a friend or family member has lost money by transferring their pension, then please get in touch with one of the specialist professional negligence lawyers here at TLW Solicitors on 0800 169 5925, email firstname.lastname@example.org or complete the callback form below.
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