We're part of the Financial Services Compensation Scheme (FSCS). The scheme is set-up to protect you.
If we get into financial difficulties which may affect our ability to pay your claim, you may be eligible to receive compensation under the FSCS.
Yes. The products offered by the Prudential Assurance Company Limited (PACL) and other UK authorised and regulated firms in M&G plc are subject to the FSCS. You may be able to make a claim if Prudential is unable to meet its financial obligations.
It’s important to know though that the scope and amount of cover does depend on the type of policy involved, and also the funds selected. You’ll find more information below in the section titled “Are there limits to the compensation payable by the FSCS?”.
Prudential International Investment Bond, Prudential International Investment Portfolio, Prudential International Prudence Bond and the International Portfolio Bond.
For eligible policyholders habitually resident in the UK, FSCS will apply for policies taken out anytime from 1 December 2001 up until close of business on the 31 December 2020. For any policy issued during this period, additional investments (top-ups) made pre or post 31 December 2020 will also be covered by the FSCS.
Policyholders of a UK policy issued before 2001, may be eligible to make a claim, but since such a policy was taken out before the FSCS regime commenced, they should check their eligibility directly with FSCS.
Any policies issued after 31 December 2020, are not covered by a government-backed financial guarantee scheme, including FSCS in the UK.
Prudential Onshore Portfolio Bond.
For eligible policyholders habitually resident in the UK, FSCS will apply for policies taken out on or after 1 December 2001.
Yes. The FSCS operates different levels of compensation. The scope and amount of cover available depends on the type of policy involved and the funds selected.
Where does FSCS protection apply?
There is full FSCS coverage if PACL is ‘in default’.
All the other funds we offer, apart from those mentioned above, are unit-linked, and invest in other funds managed by non-PACL fund managers. FSCS cover does not apply if the non-PACL fund manager were to be ‘in default’.
Where does FSCS protection apply?
There is FSCS coverage if PACL is ‘in default’.
Any further FSCS cover depends on where you invest.
Where does FSCS protection apply?
There is full FSCS coverage if PACL is ‘in default’.
Other investment options are not protected by the FSCS.
Where does FSCS protection apply?
There is FSCS coverage if PACL is ‘in default’.
The ISA Terms and Conditions explain the cover applicable for other funds available through the Prudential ISA.
Where does FSCS protection apply?
Prudential International Investment Bond, Prudential International Investment Portfolio, Prudential International Prudence Bond and the International Portfolio Bond.
If PIA was deemed to be ‘in default’, FSCS cover will apply for eligible policyholders habitually resident in the UK for policies taken out between 1 December 2001 and before the close of business on 31 December 2020. Policyholders holding a UK policy issued before 2001 may be eligible to make a claim, but since such a policy was taken out before FSCS commenced, they should check their eligibility directly with FSCS.
By investing in a PIA contract, PIA invests your money in funds that are provided by third party fund managers (i.e., non-M&G plc fund managers and fund managers within M&G plc, including The Prudential Assurance Company Limited). In such circumstances, you will not be protected by FSCS should these funds or the related fund management companies be deemed to be in default.
However, if PIA is in default, the value of any investment held in these funds will still form part of a claim under FSCS for an eligible policyholder habitually resident in the UK for policies issued between 1 December 2001 and before the close of business on 31 December 2020.
Prudential Onshore Portfolio Bond
For eligible policyholders habitually resident in the UK, FSCS will apply for policies taken out on or after 1 December 2001.
Where does FSCS protection apply?
There is full FSCS coverage if PACL is ‘in default’.
All the other funds we offer, apart from those mentioned above, are unit-linked, and invest in other funds managed by non-PACL fund managers. FSCS cover does not apply if the non-PACL fund manager were to be ‘in default’.
Annuities
Investments (e.g. Unit Trusts, Open Ended Investment Companies and Stocks & Shares ISAs)
Investment & Home finance advice (e.g. investment planning and mortgage advice).
General insurance policies
Deposits
The FSCS would pay compensation up to the limit of £85,000 per person, per authorised deposit Group (bank, building society and credit unions). Since 3 July 2015, the FSCS provides a £1 million protection limit for temporary high balances held with your bank, building society or credit union if it fails.
FSCS doesn’t cover every situation. For example unit-linked funds that invest in the funds of non-PACL/PIA fund managers (often called ‘mirror’ funds).
But, where FSCS protection does not apply, there are other factors that could help if the worst happened and a provider was ‘in default’. For example, the use of custodians or depositories to provide protection for fund assets, where there is separate legal ownership of assets and legal entities that aren’t liable for any losses of a fund manager. In so doing, the intention is that the underlying fund will not be liable for any losses the underlying fund management company incurs.
PACL/PIA would aim to recover any money invested in an underlying fund where the fund manager has been declared ‘in default’, but PACL/PIA would not be liable for any loss incurred from the default of the non-PACL/PIA fund manager.
The Financial Services Compensation Scheme
PO Box 300
Mitcheldean
GL17 1DY
Or call the FSCS: Telephone: 0800 678 1100
Website: www.fscs.org.uk
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