I

Investors Compensation Scheme

The term covers a statutory scheme operated by the Securities and Investments Board which offers a certain amount of money as protection for investors who made business with a company which collapsed. A person can start the reclaim process if the authorized firm cannot meet its obligations to pay off the investor or in case the authorized firm has been subject to court ruling which prevents the firm from returning money or other goods to investors. Since there are some limitations, it is worth to be informed about the firm one does business with. The first limitation is that a firm has to be a member of the Investor Compensation Scheme; otherwise no one will refund the losses. A few other limitations refer to not giving any compensation in situations caused by economic forces, caused by bad investment, bad management or misinterpretation.