Savers unaware FSCS compensates for bad advice and mis-selling

The lifeboat fund has published its latest consumer research

Hope William-Smith
clock • 3 min read

The Financial Services Compensation Scheme (FSCS) admits it must work more closely with its stakeholders to up the awareness around its services after finding only a slight majority of people understand it offers protection for bad advice or mis-sold financial products.

The lifeboat fund published this finding as part of its September consumer research, itself the result of a survey of just under 5,000 UK adults who had heard of the FSCS. While a high majority said they knew compensation was available to them in the case of a bank or building society collapse, over a quarter (29%) said they are unsure about the availability of compensation in the event of having received poor financial advice. One-in-six people who signalled to the FSCS they had heard about the service thought it did not compensate for bad advice at all. The FSCS said: "The condit...

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