Investment business compensation scheme
ICAEW, the Institute of Chartered Accountants in Scotland (ICAS) 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 or licensed to give such advice by one of the three institutes.
The scheme ‘is a fund of last resort’ and can pay a maximum of £50,000 if the investment advice was given by an authorised firm on or after 28 August 1988 under the Financial Services Act 1986 or by a licensed firm, on or after 1 December 2001 under the Financial Services and Markets Act 2000.
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 either ICAEW, ICAS or ICAI at the time the investment business 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 ICAEW, ICAS and ICAI. Each institute bears a proportionate amount towards the costs.
For claims in relation to an ICAI authorised firm
Investors wishing to make a claim on investment business conducted by an ICAI authorised firm on or after 1 August 2017, under the provisions of Ireland’s Investment Intermediaries Act, 1995, should write to:
The Investor Compensation Company DAC
c/o Central Bank of Ireland
PO Box 11517
North Wall Quay
For claims in relation to ICAS or ICAEW authorised firms
To make a claim on investment business conducted by an ICAS or ICAEW authorised or licensed firm or an ICAI registered firm before 1 August 2017please write to the address below providing full details of your claim and the supporting documentation:
The Chartered Accountants’ Compensation Scheme Ltd.
321 Avebury Boulevard
Phone: +44 (0)1908 546 378
Endowment policy claims
Please complete this mortgage endowment questionnaire (Word 185KB/5 pages) if your claim is about an endowment policy and send this with your claim request.
For further information about the Chartered Accountants’ Compensation Scheme, please email email@example.com or write to the Milton Keynes address above.