What is the Financial Services Compensation Scheme (FSCS)?

The Financial Services Compensation Scheme is a free service for consumers, funded by the financial services industry, which provides protection for consumers in the event that a bank or financial services firm fails. It covers a wide range of regulated financial products and services such as investments, pensions, financial advice, insurance broking, mortgage advice and arranging, with different compensation limits and eligibility criteria.

The cash you hold in your Abundance account

Any cash you hold in your Abundance account is held in a segregated client account at Lloyds Bank PLC and covered by the FSCS. If Lloyds Bank PLC was to go out of business, you would benefit from FSCS protection up to £85,000. Read more about the FSCS here.

Please note, the FSCS compensation limits apply per person, not per account, so the £85,000 limit would cover any cash you hold with Lloyds Bank PLC via Abundance, as well as any other money you hold elsewhere in Lloyds Bank PLC or any of its subsidiaries.

The cash in your Abundance account is treated as 'client money' as defined by the Financial Conduct Authority (FCA), which means it has trust status and if Abundance was to go out of business, the money we hold as client money is treated separately to the company's assets.

The investments you hold on Abundance

The FSCS covers the services we provide in relation to the investments you make in debentures or bonds on Abundance. Under the FSCS investment scheme, investors can claim up to £85,000 of compensation in the case where Abundance has gone out of business and you have a valid claim against the business. It is important to understand that the FSCS does not offer protection for poor investment performance. Read more about the FSCS here.

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