There are two scenarios to consider:
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If you hold only cash and we fail, your money is safe and sound at the banks we use to keep client money. If the banks where we hold your money fail and they are unable to return them, the FSCS can award up to £85,000 in compensation per bank.
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If you hold investments, such as shares and QMMFs, and we fail, they are still protected by Interactive Brokers, who’ll return them to you. If we have failed to keep your investments separate from our own, the FSCS can award up to £85,000 in compensation per person.
In both cases, the FSCS protection applies. Where it doesn’t apply is if QMMFs go down in value. I hope this answer fully clarifies everything 