Mortgage compensation set at same level as investment - FSA

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Consumers who fall into the Financial Services Compensation Scheme could receive a maximum potential compensation of £48,000 should a mortgage or insurance intermediary firm collapse - the same as a claim for an investment firm.

Details of Consultation paper 04/04 - entitled Mortgage firms and insurance intermediaries: Funding of the Ombudsman and Compensation schemes - state mortgage advising and arranging is covered under the FSCS for 100% of the first £30,000 and 90% of the next £20,000, presenting a maximum compensation of £48,000. That range of compensation is widened, however, under the general insurance rules as general insurance mediation is treated the same as protection insurance contracts, receiving 11% of the first £2000 and 90% of the remainder, except where they are compulsory classes of insurance ...

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