Does the FSCS rules dictate the clients’ funds have to be deposited in a UK based bank ? Because I couldn’t see this at the link you gave @Dao and haven’t yet seen a source stating this !
And is the compensation scheme only for only for cash funds or also for the securities ? Because it’s unclear to me from their statement…
Yes, both your funds and stocks are covered by FSCS. It doesn’t really matter where our funds are stored, since the levies which we pay are going directly to FSCS. Hence, their fund is the one which will be used for compensation, if any. You can read more about the topic here:
https://www.fscs.org.uk/how-we-work/eligibility-rules/fscs-cover-triggered/
Just for your own convenience:
Well, I tried but couldn’t get a coverage : https://claims.fscs.org.uk/PreScreening/DisplayEligibilityDecision/82445e11-e711-47dd-ad6d-89db1ac47c5a
Well yes, you can’t initiate a claim because:
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We’re not “in default”, obviously.
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We offer execution-only service. We don’t offer trading advices. Hence the reason why you can’t initiate the “bad investment advice” claim type.