How long does it take for the FSCS to refund my money?
The length of time each claim takes to process depends on a number of factors, some of which are entirely outside of the FSCS’s control. However, the FSCS will try to process your claim within the following timelines:
- Claims against deposit takers
- The FSCS will aim to pay compensation in the majority of cases within 7 days of a bank building society or credit union failing. Any remaining claims which are likely to be more complex, will be paid within 20 working days.
- Claims against all other companies
- The FSCS tries to resolve all claims against investment firms within 6 months of receiving your correctly completed Claim Application Form, or within 6 months of the company being declared in default (whichever is later).
What happens if Darwinex Defaults?
If Darwinex goes into liquidation, it would be considered a “primary pooling event” in the FCA handbook. In the event of a “primary pooling event”, a client’s main claim is for the return of the client money held in the client money bank account.
If, after the liquidation of the company, any client claim is not settled in full, the client can approach the FSCS. The FSCS would be able to cover the shortfall to the extent of £50,000 per person.
What if the bank or third party with whom my money is placed fails?
Failure of a bank or third party, within which client money is placed by us, is considered a “secondary pooling event” in the FCA handbook. In the event of a “secondary pooling event”, money held in each general client money bank account and client transaction account (with third parties other than banks), must be treated as pooled. Any shortfall in client money that has arisen as a result of the failure of the bank/third party must be borne by all the clients, rateably in accordance with their entitlements.
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