With lots of uncertainty in the world, a bit of financial protection is needed. Enable’s IFAs in Bishops Stortford can help you make sure that your assets are spread an age-old adage for financial protection. On top of being sensible and managing your finances, there are several checks and balance in place in the UK for your savings and investments.
Some are operated through the Financial Services Compensation Scheme (FSCS). The FSCS is a Government-backed scheme which protects your savings in the event of a regulated financial firm going bust. It’s authorised by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority. The scheme covers savings deposits, investments, pensions, insurance policies, insurance broking, and home finance.
It is worth knowing what is protected as things can change for example the amount of compensation available if your investment or pension firm fails has nearly doubled recently. The amount of savings protected by the FSCS should a financial firm collapse is now £85,000. Joint accounts will be protected up to a maximum of £170,000. For investment and pension providers, you are protected for up to £85,000 if the firm fails. The limit increased in April 2019, from a previous limit of £50,000.
When it comes to investments you need to take more care. Enable’s IFAs will make sure you understand the nature of your investments with thorough risk assessments. Some firms claim that investment is FSCS protected. The FSCS is unlikely, however, to compensate you if the value of your investments decreases. There are pretty much no ‘risk-free’ investment products out there and you should be extremely sceptical of any company that purports to be so. However, there are always exceptions and if you’ve bought an annuity you’ll get compensated 100% of its value should the firm fail.
Talking through your financial planning, your investments and savings with an experienced IFA at Enable is the best way to help make sure you are making good financial decisions and are financially protected.
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