Are my investments covered by the Financial Services Compensation Scheme (FSCS)?

Currently, all contributions are invested by State Street Global Advisors Limited in highly regarded, mainstream pooled investment funds, accessed by a long-term insurance contract with Managed Pension Funds Limited. This is a typical investment structure used by many pension funds in the UK.


In its consultation of 30th November 2015 the FCA confirmed that Trustees of Master trusts would be eligible to make a claim against the FSCS. The current FSCS website states:

‘In the case of an occupational pension scheme providing money purchase benefits, the rules require FSCS to look through the trustees of the scheme to the individual members and treat the members as the claimants. So, if the trustees had invested in an investment product (and the conditions set out above were met) FSCS could pay each member up to £50,000. Where the money purchase scheme is invested in a life insurance contract, FSCS would first try to secure continuity of cover. If this was not possible FSCS would instead pay compensation calculated at 100% of the claim under the life insurance contract with no upper limit.’

As the investments of The People’s Pension are held as life insurance contacts it is our belief that in the event of a default the Trustee would be able to make claims to the FSCS on behalf of all members and that these claims would be at the higher 100% value rate.

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