Site Map  |  Terms of Use  |  Privacy Policy   Home
  General Information  | Questions & Answers |  Forms & Procedures | Contact Information

General Information



About FSCS


All Bonds issued by CAPCO expired in or prior to February 2009.
Only customers of Lehman Brothers Inc. and Lehman Brothers International (Europe) may be beneficiaries under the Bonds because insolvency proceedings were commenced prior to expiration of the Bonds with regard to only those firms. Coverage provided by the Bonds is described in more detail in this web site.

About FSCS

It is important to understand that The Financial Services Compensation Scheme (FSCS) protection is not the same as the "Excess FSCS" protection provided by CAPCO. CAPCO does not offer FSCS protection. FSCS is the sole source of FSCS protection. There is no affiliation between CAPCO and FSCS.

Pursuant to the Financial Services and Markets Act 2000 (FSMA), the Financial Services Authority (FSA) created the FSCS as a statutory fund of last resort for customers of firms authorised by the FSA, compensating them when an authorised firm is unable, or likely to be unable, to satisfy claims against it (generally, when a firm is insolvent). The FSCS is an independent body funded by compulsory levies on firms authorised by the FSA.

FSCS covers investment business of firms authorised by the FSA. Investments covered include stocks and shares, unit trusts, futures and options, personal pension plans and long-term policies such as endowments. FSCS also covers other regulated business including authorised deposits and insurance. Firms authorised in other EU countries who also do business in the UK are generally unlikely to be covered by the FSCS and will be covered by compensation regimes established in their home state.

To qualify for FSCS compensation, a claimant needs to be eligible under FSCS rules which are published in the Compensation Sourcebook of the FSA's Handbook of Rules and Guidance. The FSCS was set up mainly to assist claimants who are private individuals, although smaller businesses are also covered. Larger businesses are generally excluded, at least for claims relating to investment business.

The FSCS rules state which types of claim are eligible for FSCS compensation, and how much compensation can be paid. Under the FSCS rules, there are limits to the amount of compensation FSCS can pay to a claimant depending on the type of claim. In respect of investment business, the FSCS will cover a claim by an eligible person up to £50,000, although the maximum payment of compensation in relation to such a claim will be £48,000 (FSCS will compensate 100% of the first £30,000 and 90% of the next £20,000 of any claim). FSCS does not compensate persons for a failure of investment performance to match a guarantee given or representation made, or for mere fluctuations in the value of investments. FSCS compensation is generally made by way of cash payments.

For further information on the FSCS, please see, call the Scheme's Customer Services Team on 020 7892 7300 or write to: Financial Services Compensation Scheme, 7th Floor, Lloyds Chambers, Portsoken Street, London E1 8BN.

Site Map  |  Terms of Use  |  Privacy Policy  |  General Information  |  Forms & Procedures  |   Questions & Answers
 Contact Information  |  United States Location Information    Home