Mortgage compensation set at same level as investment - FSA

clock

Consumers who fall into the Financial Services Compensation Scheme could receive a maximum potential compensation of £48,000 should a mortgage or insurance intermediary firm collapse - the same as a claim for an investment firm.

Details of Consultation paper 04/04 - entitled Mortgage firms and insurance intermediaries: Funding of the Ombudsman and Compensation schemes - state mortgage advising and arranging is covered under the FSCS for 100% of the first £30,000 and 90% of the next £20,000, presenting a maximum compensation of £48,000. That range of compensation is widened, however, under the general insurance rules as general insurance mediation is treated the same as protection insurance contracts, receiving 11% of the first £2000 and 90% of the remainder, except where they are compulsory classes of insurance ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Beyond referrals: Rethinking client acquisition in a digital age

Beyond referrals: Rethinking client acquisition in a digital age

'When executed well, lead generation bridges the gap between digital intent and personal advice'

Buddy Keville
clock 05 August 2025 • 4 min read
PA Asks reveals ethics concerns: Industry split on rewarding advisers by book size

PA Asks reveals ethics concerns: Industry split on rewarding advisers by book size

‘Why do we keep perpetuating this model?'

Sahar Nazir
clock 05 August 2025 • 2 min read
Seccl names UK CEO to replace David Ferguson

Seccl names UK CEO to replace David Ferguson

Interim MD Jonathan Dees welcomed as CEO of the tech platform

Sahar Nazir
clock 05 August 2025 • 2 min read