For clients that have more than the Financial Services Compensation Scheme (FSCS) threshold deposited with a Financial Institution, having an additional layer of protection can provide them with peace of mind that their assets are protected.

The Excess Compensation Scheme Insurance is designed to sit in excess of the FSCS scheme and is UK-centric. The FSCS scheme protects clients’ funds that are deposited with UK financial institutions up to a maximum of £85,000* The protection granted by this scheme means that client funds deposited with UK financial institutions shall be guaranteed up to £85,000 should that institution be unable to restore the client their funds. Amounts above £85,000 are not protected under the scheme.

The triggers of this particular policy align with the FSCS in that the insured must go insolvent in order for one of the policy triggers to be active, but there must also be concurrently the event of misconduct.

In the unlikely event that the company goes insolvent, there is an event of misconduct, and the loss is in excess of £85,000 then there is a sub limited coverage per customer.

In the event of a claim, the policy will pay directly to any eligible claimants who have sustained a financial loss covered under this policy up to the aggregate limit of indemnity.