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.
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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.
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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.
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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.
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The FSCS covers some of the services Abundance provides in relation to investments you make on Abundance, but not all. It is also important to understand that the FSCS does not offer protection for poor investment performance.

You can learn more about the FSCS protection for investments here.
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The FSCS covers some of the service we provide in relation to the investments you make in debentures or bonds on Abundance, in particular the process of arranging an investment into an open investment on Abundance.

All the investments offered by companies on Abundance are in the form of a debenture or bond, as well as our first two council investments called West Berkshire 2025 and Warrington 2025.

Under the FSCS investment scheme, investors may be able to claim up to £85,000 of compensation in the case where Abundance has gone out of business and you have a valid claim against Abundance.
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The FSCS does not cover the services Abundance provides in relation to investments you make in peer to peer (P2P) loans so you cannot make a claim through the FSCS if Abundance goes out of business and you have an outstanding claim with Abundance in relation to P2P loans you have made.
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From 2021, our investments from councils are structured as P2P loans.