People who hold investments and insurance policies with providers that become insolvent are covered by the Financial Services Compensation Scheme (FSCS) as long as they purchased their schemes through a UK-authorised business.

For long-term insurance – pensions and life assurance – and general insurance such as home, travel and motor, the FSCS offers unlimited protection. The scheme covers 100 per cent of the first £2,000 plus 90 per cent of the remainder.