Which of the following can potentially claim on the Investor Compensation Scheme?

• A. A pension fund.
• B. An insurance company.
• C. A large company.
• D. An individual private client of an insurance intermediary.

Answer: (D)

Investor Compensation Scheme protects retail investors—individuals who rely on regulated investment services for their personal investments. It isn’t intended for professional clients or institutions, such as pension funds, insurance companies, or large corporations, which are considered to have greater resources and access to other protections. An individual private client of an insurance intermediary falls into the retail-investor category, so that person could potentially claim if the intermediary fails to return investments or misuses client funds. The other entities listed aren’t eligible because they are professional or institutional clients, not private retail investors.