There are certain risks associated with insurance contracts. We point out some of the major risks below which we would urge you to consider seriously before committing yourself to an insurance contract.
The FSCS was set up under the Financial Services and Markets Act 2000 and exists to protect clients of FCA authorised firms. It covers Mortgage advising and arranging up to £85,000. The Scheme can pay compensation to clients who have lost money as a result of their dealings with FCA authorised firms that are unable to pay claims against them, usually because they are insolvent or have stopped trading. Buy to let mortgages and non-regulated contracts and may not be covered under the FSCS scheme or by the Financial Ombudsman Service (FOS). It is therefore important that you understand and are aware if your investment is a ‘regulated contract’ or a ‘non-regulated’ contract.