FSCS extension on PI awards

Last September we explained how, on account of the pandemic, the protection of personal injury and fatal accident awards provided by the Financial Services Compensation Scheme, had been extended from 6 to 12 months.

We wrote;

As a result of the financial crisis of 2008, most people are aware that the failure of a bank or building society, results in compensation payable by the Financial Services Compensation Scheme (FSCS), limited to £85,000 per individual per institution. More recently, certain temporary high balances received extra protection, with no maximum, including personal injury and fatal accident awards, but limited to a six month period. As a result of Covid 19, protection for those awards has been extended further.

Caroline Rainbird, FSCS Chief Executive, said, “The coronavirus pandemic has been very worrying for everyone, and people are understandably concerned about the possibility of losing their temporary high balance should their deposit taker fail. The temporary extension of FSCS’s protection from six to 12 months will do much to reassure them should the worst happen during these uncertain times.”

Although furlough and schemes to help businesses survive, have been extended until the autumn, the extra protection from the FSCS for personal injury and fatal accident awards concluded on 1st February, reverting to the standard six month period.

This falls at a time when interest on cash accounts is minimal and greater protection is available on a more permanent basis. We can assist with this, through our specialist knowledge of managing and investing personal injury and fatal accidents awards.

For more information on FSCS temporary high balances

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The value of investments, and the income arising from them, can go down as well as up, and is not guaranteed, which means that you may not get back what you invested.

The Financial Conduct Authority does not regulate Personal Injury Trusts and Periodical Payment advice.

Content correct at the time of writing and is intended for general information only and should not be construed as advice.

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