When talking about your pensions or investments it’s always important to fully understand what protection you have and any limitations you should be aware of. Using a financial adviser is no different and hopefully this document will help explain a bit further.
The Financial Services Compensation Scheme - FSCS
We are covered by the FSCS. You may be entitled to compensation from the scheme if we cannot meet our obligations. This depends on the type of business and the circumstances of the claim. Here are some typical examples:
Investment - Most types of investment business are covered up to a maximum limit of £85,000 if the firm failed after 01/04/2019. If the firm failed between 01/01/2010 and 31/03/2019, the maximum limit is £50,000.
Deposits - £85,000 per person per firm (for claims against firms declared in default from 1st January 2017).
For joint accounts, up to £170,000 is covered.
Insurance - Insurance advising and arranging is covered for 90% of the claim, without any upper limit.
For compulsory classes of insurance, insurance advising and arranging is covered for 100% of the claim, without any upper limit.
Further information about compensation scheme arrangements is available from the FSCS.
Network - We operate under a ‘network’ whom we are responsible to. This provides an additional layer of protection in that there is a dedicated team behind the scenes to double check and provide further support where needed. This includes checks on quality of advice as well as monitoring the level of expertise of our advisers.
The Financial Conduct Authority - Financial Services in the UK are regulated by the Financial Conduct Authority. One of their three primary objectives is Consumer Protection. We are required to be qualified to a certain standard, follow principles to create a customer-centric culture and also demonstrate we are fit and proper on an on-going basis.
Complaints
We do everything in our power to ensure our advice is suitable and our services is of a high standard. However to demonstrate an additional layer of protection we have a complaints process which we must adhere to as set out by our regulator the Financial Conduct Authority.
This is undertaken by our network. Should you be unhappy with their findings and resolution to your complaint you have the right to refer this to the Financial Ombudsman Service within 6 months of their final letter.
If you wish to register a complaint, please contact us:
Write to ValidPath Limited, Complaints Department, Maltings, East Tyndal Street, Cardiff, CF24 5EA
If you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service.
The Financial Ombudsman Service provides a free for consumers independent complaint resolution service. They can provide a neutral set of eyes on the issue to further assist all parties.
https://www.financial-ombudsman.org.uk
Others - We also explain any cooling off periods if we recommend a product and outline disadvantages to be aware of too, not just the advantages. This means you can take all of this into account with the advice given to gain a fuller picture of what’s involved.
We hope the above helps you in understanding this often complex area of the financial world. One of the benefits of receiving personalised financial advice is that the exact protection given to you, should it be different from the above, can be outlined clearly and concisely. Not only do we outline any advantages of our advice but also the disadvantages too.
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