Investment business compensation scheme
ICAS, ICAEW and the Institute of Chartered Accountants in Ireland (ICAI) operate a compensation scheme for members of the public who have incurred a financial loss as a result of investment advice given by a firm of chartered accountants which, at the time the advice was given, was authorised to give such advice by one of the three institutes.
The scheme can pay a maximum of £50,000 if the investment advice was given on or after 28 August 1988 (or if the claim relates to advice given by a licensed firm, on or after 1 December 2001).
If the claim relates to advice given on or after 1 December 2001, the scheme can consider claims relating to firms licensed by one of the institutes, though only if the advice was given in relation to a limited range of financial products.
The scope of the scheme is set out in the compensation scheme regulations. These stipulate that:
- the firm must have been authorised or licensed by one of the institutes at the time the financial advice was provided;
- the loss must have arisen from the advice given;
- the firm must be insolvent; and
- there must be no other way of recovering compensation.
An independent panel decides whether the claim falls within the terms of the scheme and the amount of compensation due.
Chartered Accountants Compensation Scheme Ltd administers the scheme on behalf of the three institutes and they each bear a proportionate amount towards the costs.
For further information about the compensation scheme, or if you want to make a claim, please write to:
The Chartered Accountants Compensation Scheme Ltd.
Metropolitan House
321 Avebury Boulevard
Milton Keynes
MK9 2FZ
Phone: +44 (0)1908 546 378
Email: phil.o'halloran@icaew.com
Please fill in this mortgage endowment questionnaire (Word 185KB/5 pages) if your claim is about an endowment policy.