On 14 April 2016, the Financial Services Compensation Scheme (FSCS) revealed on its website that it may be able to compensate eligible investors in relation to unsuitable advice they receive in relation to investing in peer-to-peer (P2P) lending via loan-based crowdfunding platforms.
Up to £50,000 may be available as compensation if all of the following criteria are met:
- The advice received to buy the investment was given after 6 April 2016.
- The firm that advised was authorised by the appropriate regulator at that time.
- Money has been lost as a result of the advice.
- The firm (or its principals) that gave the advice do not have sufficient assets to meet the compensation claim.