As an FCA-regulated firm, Alliance Trust Savings is covered by the Financial Services Compensation Scheme (FSCS). The FSCS is an independent body and is there to protect your money.
If a regulated firm fails to meet its financial obligations, the FSCS can pay compensation. Along with cash deposits, they protect a wide range of other financial products and services such as investments, pensions and financial advice.
The current FSCS compensation limits that are applicable to money held by Alliance Trust Savings are:
£85,000 for cash deposits, per individual or company
£85,000 for investments, per individual
The deposit compensation limit applies to individuals and companies, not accounts. This means that for joint accounts, the limit applies to each named account holder. Each account holder can make a claim for up to £85,000, for a total of up to £170,000.
For Investment business the FSCS can pay compensation if the firm concerned has failed and cannot return your investments or money owed, and you lose money because of:
bad or misleading investment advice
negligent management of investments
It does not pay compensation if your investment does not perform as well as you hoped.