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Question

What compensation does the Financial Services Compensation Scheme provide?

Answer

Financial Services Compensation Scheme (FSCS)

The accounts you hold with us are protected by the Financial Services Compensation Scheme (FSCS). This is an independent body set up to settle claims on behalf of clients/customers of UK authorised financial service firms. The FSCS will pay compensation if a bank is unable to meet its financial obligations.

Barclays Stockbrokers is a trading name of Barclays Bank PLC. Your uninvested cash balance is held by Barclays Bank PLC as banker, and is treated in the same way as a cash deposit in a bank account.

Cash held

If an eligible deposit is unavailable because the bank is unable to meet its financial obligations, you will be repaid by the FSCS. This repayment covers at maximum £85,000 per bank.

If you hold more than £85,000 in cash with Barclays Bank PLC (for example: within a Savings account, a current account and a Barclays Stockbrokers account), any amount exceeding £85,000 would be dealt with alongside other unsecured creditors as part of the liquidation process.

Stock held

Investments are covered separately by the FSCS up to a maximum compensation limit of £50,000 per person per firm. The company responsible for providing safe custody of your investments is Barclays Bank PLC.

Your holdings are currently registered in the name of a nominee company, which is the legal owner of the assets. The principal nominee we use is Barclayshare Nominees Limited, which is a subsidiary of Barclays Bank PLC. Under this arrangement, you remain the beneficial owner of the assets.

In the unlikely even Barclays Bank PLC became insolvent, your holdings would not be considered part of Barclays' assets and so would fall outside the assets available to our creditors.

However, you should note that there are circumstances in which 'in flight' transactions can be affected by our default. If such unsettled transactions were affected by our default, you may be eligible for compensation under the FSCS investment sub-scheme. The maximum level of compensation for claims against firms is £50,000 per person per firm. This means that eligible claimants would be able to claim up to £50,000 compensation for their investments held by each firm.

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