Securing funds in the United Kingdom raised to 85 000 pounds

This is good news for people who use the services of British brokers. Amount of compensation guaranteed by the fund Financial Services Compensation Scheme (FSCS) was raised from 50 000 GBP to 85 000 GBP.

What is and how FSCS works

The Financial Services Compensation Scheme is a fund that provides compensation to insured clients of companies registered with FCA, if these companies are unable to make withdrawals themselves. The guaranteed sum is assigned to one customer, regardless of how many transaction accounts and in which base currency the customer has or where the investment service was provided.

The protection applies if the company ceases to fulfill its financial obligations. The fund will transfer the amounts compensated from any application that has been deemed legitimate within six months of being sent to the FCA. If someone had an account with a broker Alpari UK in January 2015 year ("Black Thursday" effect) it certainly knows in practice how this mechanism works.

Greater security

These changes apply to all members of the Financial Services Compensation Scheme, i.e. British brokers using the license Financial Conduct Authority (FCA). UK companies operate under the regulations of the United Kingdom Tickmill UK, LMAX Exchange or FxPro UK.

Until now, guaranteed protection of clients' funds of British financial institutions was provided in 100% up to the amount of 50 000 pounds, or approximately 240 thous. PLN today. Now, this amount has been increased by as much as 50%, i.e. it will provide security for clients of these companies up to the amount of 85 000 pounds, or approx. 360 thous. Golden. Thus, it is the amount of collateral comparable to the Swiss banking standards that offer a guarantee to 100 000 CHF (about PLN 380).