Am I covered by the Financial Services Compensation Scheme?
The Financial Services Compensation Scheme (FSCS), or any other such scheme or service including the Financial Ombudsman Service (FOS), does not apply to investment products offered on Tifosy.
The FSCS, however, apply to funds held in your Tifosy Wallet prior to investment or once the proceeds of that investment are returned to you. The funds in your Tifosy Wallet are treated as 'client money' as defined by the Financial Conduct Authority), which means it has trust status and are held in a segregated client account at the Royal Bank of Scotland plc. If Royal Bank of Scotland plc was to go out of business, you would benefit from FSCS protection up to £85,000
Under the FSCS investment scheme there may also be limited circumstances in which you can claim up to £85,000 of compensation where Tifosy is unable or unlikely to honour legally enforceable obligations against it (e.g. claims for fraud or misrepresentation).
However, it is important to understand that the FSCS does not offer protection for poor investment performance and you will not be able to claim under the FSCS simply because an investment fails to repay capital or pay interest.