Call for more clarity from FSCS

Graeme Mitchell, managing director of Scottish Borders-based firm Lowland Financial, said FSCS protection levels were unclear, especially if a fund were held in two products, such as a Sipp and Isa, and the total value of the investments exceeded the £50,000 FSCS protection limit.

“I think the FSCS should be clearer about what is protected,” he said. “Is it the group or the fund? You could easily invest more than the protected £50,000 in the same fund via different products. Would that mean you only got back the first £50,000 invested?”

Right to reply

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An FSCS spokesman said each authorised firm was protected up to £50,000 in any particular holding, but that it had no plans to widen information to advisers due to the complex nature of individual investments.