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

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

Answer: (A)

The Investor Compensation Scheme protects retail clients of authorised investment firms when something goes wrong with investment services. It’s aimed at individual investors or small businesses who rely on investment providers, not at large institutions or professional clients.

Pension funds, large companies, and insurance companies are generally considered professional or institutional clients and don’t fall under this scheme. An individual private client who uses an insurance intermediary for investment services, however, is a retail client of an authorised firm and can claim for eligible investment losses under the scheme. The insurance intermediary’s involvement doesn’t change that retail status, so this scenario fits the scheme’s intended coverage.