Investor Compensation Scheme: Who Qualifies and What You Get

This scheme provides a safety net for people who lose money because an authorized investment firm is unable to pay them back. It acts as a protective layer for your assets when a financial firm is no longer able to meet its obligations to its clients.

👤Who it's for

This protection is specifically designed for clients of authorized investment firms. If you use a firm that is officially authorized to conduct investment business, you are eligible for this coverage. This is intended to protect individual clients who rely on these firms to manage or hold their investment assets.

🎁What you get

If an authorized investment firm fails and cannot return your assets or money, you can receive compensation. The scheme provides a payout of up to €20,000 to help cover your losses resulting from the firm's failure. This amount acts as a limit on the compensation you can receive from the scheme in these specific circumstances.

💰What it costs you

There is no direct cost to you for this protection. The coverage is automatic for clients of authorized firms, meaning you do not need to pay a separate fee or subscription to be included in the safety net.

⚠️The catch to know

It is very important to understand what this scheme does and does not cover. This is not insurance against the risks of investing. It does not cover any losses you experience due to bad market performance or the value of your investments dropping. The scheme is only triggered if the investment firm itself fails and is unable to fulfill its duties to you.

📝How to apply

1. Verify that your investment firm is currently authorized by the relevant regulatory body.
2. Document the specific reasons why the firm is unable to return your funds or assets.
3. Prepare all necessary records of your holdings and the losses you have incurred due to the firm's failure.
4. Contact the issuing company to begin the formal claim process.