Owen had €35,000 invested with ACE Investment Managers Ltd, which has gone into liquidation. What is the maximum amount he may recover from the Investor Compensation Scheme?

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Multiple Choice

Owen had €35,000 invested with ACE Investment Managers Ltd, which has gone into liquidation. What is the maximum amount he may recover from the Investor Compensation Scheme?

Explanation:
When an investment firm fails, the Investor Compensation Scheme protects retail investors by paying compensation up to a fixed limit for each investor per firm. The key number here is the cap of €20,000 per investor from any one investment firm, regardless of how much was actually invested. So even though Owen had €35,000 with ACE Investment Managers Ltd, the most he can recover through this scheme is €20,000. The remaining €15,000 would not be covered by the Investor Compensation Scheme.

When an investment firm fails, the Investor Compensation Scheme protects retail investors by paying compensation up to a fixed limit for each investor per firm. The key number here is the cap of €20,000 per investor from any one investment firm, regardless of how much was actually invested. So even though Owen had €35,000 with ACE Investment Managers Ltd, the most he can recover through this scheme is €20,000. The remaining €15,000 would not be covered by the Investor Compensation Scheme.

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