Client funds individually covered up to £1,000,000Until now any amount over the FSCS £50,000 threshold could not be guaranteed in the event of insolvency. Not any longer,8Safe UK Ltd ( “8Safe UK” ) is pleased to offer additional security to its clients’ funds above the threshold provided by the Financial Service Compensation Scheme (FSCS).
This policy, underwritten by QBE Underwriting Limited and other participating syndicates at Lloyd’s of London will now provide clients of 8Safe UK protection of funds individually covered up to £1,000,000 as standard.
What is the FSCS?The FSCS is the UK's compensation fund of last resort for customers of authorised financial services firms. With the standard Financial Services Compensation Scheme (FSCS) you are covered under the ‘investments’ claim category, whereby the cover is up to £50,000 per person per firm in case of a brokers default or insolvency.
What is Excess of FSCS Insurance?The FSCS typically provides protection up to £50,000, but what if our client’s assets exceed this threshold?
To address the fears of clients whose assets exceed the FSCS’s threshold, 8Safe UK have purchased a new insurance product – Excess of FSCS Insurance. This Policy provides protection on a per client basis, aggregated over the policy period and is underwritten by Lloyds of London. This policy provided clients assurances that their funds are protected above the provisions of the FSCS.
How much insurance have 8Safe UK bought?8Safe UK have purchased insurance that surpasses the £50,000 threshold of exposed capital, increasing the threshold to £1,000,000 per client. Cover for clients that go beyond the sublimit of £1,000,000 can be arranged.
Does it cost me anything?8Safe UK have purchased this policy on your behalf, there is no direct cost to clients.
Who underwrites this policy?The policy is underwritten by QBE Underwriting Limited and other contributing syndicates at Lloyd’s of London.
Who & What is covered?Clients of 8Safe UK, whose funds are held in segregated accounts and who qualify under FCA compensation rules.
Only the eligible securities and cash of 8Safe UK retail customers for the solitary benefit of the customers.
How does it Work?Should the improbable occasion arise, where client assets are not entirely recuperated following the insolvency of 8Safe UK, supplementary coverage is afforded to offer protection above the FSCS limit of £50,000 per client. The policy will be upheld providing the following causes have been met:
- 8Safe UK is declared insolvent by the FSCS
- Discovery of a shortfall in segregated customer assets by insolvency practitioners
- The FSCS paying the first £50,000 of each claim