How much compensation is Sharon entitled to under the rules of the Financial Services Compensation Scheme [FSCS]?

To determine how much compensation Sharon is entitled to under the Financial Services Compensation Scheme (FSCS), it's important to note how the FSCS operates. The FSCS provides compensation to customers of financial services firms that are unable to pay claims against them, such as in cases of insolvency or failure to meet obligations.

One key aspect of the FSCS is that it establishes limits on the amount of compensation payable, which can vary based on the type of financial products and services involved. For example, compensation limits for investment-related claims and insurance claims can differ.

In this scenario, if the amount of compensation she is entitled to has been properly calculated and aligns with the FSCS limits for her situation, the figure mentioned as £4,050 is identified as the correct entitlement. This amount likely reflects a specific assessment based on the nature of her claim and the applicable FSCS limits, which may account for factors such as the type of product Sharon was using or the specifics of her claim.

Understanding these processes and how claims are assessed under the FSCS is crucial for clients to know their rights and what to expect in terms of compensation should a financial firm fail.