At 80-20 Investor we do not take money from your investments neither do you invest through us. We provide unbiased research and analysis to empower you to make better investment decisions.
As a DIY investor you will invest and buy funds or shares via a discount broker or a fund platform. But what sort of protection do you receive if a firm goes bust?
Investments
Compensation is only paid if an authorised firm is declared in default following an investigation by the FSCS. The maximum compensation is £85,000 per person per firm. Investments covered are stocks and shares, unit trusts and other long term investments. The compensation is only triggered when a product provider goes bust, or for a loss arising from poor advice rather than the collapse of the underlying investment.
Fund platform
When you invest through a fund platform your money is put into a ‘nominee account’ this allows the platform to administer and look after your investment on your behalf. In effect your investment is ‘ring-fenced’ from other investments on the same platform. So, if the platform you are using falls into financial difficulties your money will be safe.
All investment platforms should be registered with the Financial Conduct Authority and you can check this by searching the financial services register.
