In accordance with Client Money Rules, set out by the Financial Conduct Authority, we hold client money in a segregated account. This means that their money is held separately from ours. And in the unlikely event that we became insolvent, because their money is held separately, it will be returned to them.

For additional security and diversification, we also spread the money we hold for clients across four leading UK banks. These are HSBC, Lloyds, Bank of Scotland and Natwest. If any of the banks that we use to hold money were to become insolvent, any money we hold is protected under the Financial Services Compensation Scheme (FSCS)

Financial Services Compensation Scheme

Investment Funds Direct Limited (IFDL), provider of the M&G Wealth Platform, is covered by the Financial Services Compensation Scheme (FSCS) in respect of the Platform and the Accounts within it. If a client makes a valid claim against us in respect of their Investments and we are unable to meet our liabilities in full, they may be entitled to redress from the FSCS of up to £85,000 for investments, subject to eligibility.

Cash and investments are always held separately from our own accounts and from those with whom we place the Investments. As such, any insolvency practitioner should be obliged to return  cash and Investments to clients as part of the wind-down process.

If an investment provider fails financially, as long as you have selected one covered by the FSCS, your clients investment with that provider will be covered by the scheme up to a limit of £85,000 per provider. The fund prospectus, or similar document, will say if the investment provider is a member of the scheme. Insured Funds, covered by FSCS, receive protection of 100% of the Investment and are not subject to an upper limit of protection. The FSCS does not protect against losses if the Investment were to fall in value.

The banks we use acknowledge that money is held as client money which is protected in the event of the insolvency of IFDL. In the event of the insolvency of one of the banks we use, any client money we hold is protected under the FSCS up to a maximum of £120,000 for each client and bank with whom client money is held. This limit is applied to banks that are separately authorised and can only be applied once, therefore banks operating under different brands within the same authorisation are covered under the same limitation. The compensation limit of £120,000 includes any other money held in accounts with the authorised banks we use, therefore if your clients have current or deposit accounts with the same bank these will all count towards the compensation limit of £120,000.

Temporary high balances of up to £1.4 million are protected for a limited period of 6 months from when the amount was first credited to the account or became legally transferrable. The FSCS website has further details on the definition of a temporary high balance.

For further information please visit the Financial Services Compensation Scheme (FSCS) website.

Tel: 0800 678 1100 or 020 7741 4100

Address: Financial Services Compensation Scheme, 10th Floor, Beaufort House, 15 St Botolph Street, London EC3A 7QU