Does FSCS cover me if my platform goes bust?

Hi Holly and team,

Re your article about ready-made portfolios, I wonder what the position is on the £85,000 FSCS compensation.

I read that if, for example, I buy £100,000 of AJ Bell Balanced, even though it is invested in a range of funds, I would only get £85,000 back in the event of a problem with AJ Bell.

Is that correct?

Hi,

Thank you for your question - this is indeed a very sensible query.

AJ Bell Youinvest is listed on the FTSE 250Similar to the FTSE 100 and includes the largest companies on the London Stock Exchange by market capitalisation, excluding the initial 100 largest from the FTSE 100. In other words, it's the 101st to the 350th largest companies on the London Stock Exchange. and is authorised and regulated by the Financial Conduct Authority (FCA). If a fund fails due to fraud or mismanagement, you may be eligible for compensation from the Financial Services Compensation Scheme (FSCS).

The FSCS protection is capped at £85,000 per person, per fund manager (not per individual fund). However, if your investments lose value due to normal market conditions or your investment choices, this is part of the normal risk of investing and is not covered by FSCS compensation.

You can read more about investors' protections with AJ Bell here.

Hope this helps!