The Financial Conduct Authority (FCA) is considering changing the way consumer compensation limits are structured after some firms suggested insurance and investment limits should be aligned.
The FCA will look at whether it should increase the amount of compensation investment customers can claim from the Financial Services Compensation Scheme (FSCS), it said in a policy statement out on 25 April. Currently, those who claim for an insurance policy from a failed insurer are eligible for 90% of compensation (100% for mandatory products such as car insurance), while investment claimants face a £50,000 limit. Annuities are seen as long-term insurance contracts and as such qualify for 100% protection. However, advice on the products is classed as investment advice, subjecting t...
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