EBC Financial Group: Building Diversified Professional Protection Based on the FSCS Compensation Plan

2023-12-21
Summary:

EBC Financial Group (UK) Ltd bolsters investor confidence by aligning with the UK's Financial Services Compensation Scheme (FSCS), offering up to £85,000 in potential coverage for qualified and eligible FCA clients.

The UK's Financial Conduct Authority (FCA) provides robust claims protection through the FSCS Financial Services Compensation Scheme, extending a safety net to investors. Each qualified FCA account under EBC Financial Group (UK) Ltd is eligible for access to the FSCS's protection, offering coverage of up to £85,000. It must be noted that the FSCS evaluates all cases as a stand-alone event, and compensation is not automatically guaranteed.


The most up-to-date information about the FSCS scheme can be obtained at www.fscs.org.uk.

EBC's Exceeding the Standard

1. Authoritative Compensation with Global Repute

Since its inception in 2001, the FSCS has distributed over £5.5 billion in compensation, stepping in when authorized financial firms fail. While the scheme has been active during periods of financial instability, such as the European debt crisis and the Swiss franc event in 2015, its primary role is not to address the consequences of these market events directly. Instead, the FSCS evaluates firms' conduct towards their clients, providing a safety net that reinforces the integrity of the FCA's regulatory framework.


The FSCS's compensation guarantee gained prominence in 2015 following the Swiss franc black swan event, where it fully covered the losses incurred by investors, showcasing the scheme's significant coverage and compensation intensity. This incident underlined the scheme's pivotal role in offering financial redress during market upheavals.


2. FSCS’ Escalating Compensation Intensity and Coverage

Over the years, the FSCS has escalated its compensation limit from £50,000 to the current £85,000, reflecting an increasing intensity in compensation and a commitment to more comprehensive investor protection. Notably, in the fiscal years 2021-2022, the scheme paid out compensation totalling £570 million annually, marking the highest disbursement levels in its history. This trend of raising compensation standards underscores the FSCS's continuous evolution to provide broader and more effective safeguards for investors.


The FSCS stands as a pivotal element of the FCA's supervisory and compliance architecture, renowned for its substantial compensation capability, unparalleled credibility, and consistent policy enforcement. As the FSCS compensation benchmark increases, the overall difficulty of applying for an FCA license has further increased.


As a global trading broker, EBC actively practices the adoption of the FCA's compliance framework.


Furthermore, EBC Financial Group (UK) Limited stands out in the industry for its capability to offer an FCA account with leverage starting at 100 times and may grant higher access at our discretion, a testament to the company’s robust financial infrastructure and commitment to providing versatile trading solutions. Recognizing the complexities associated with FCA account applications, EBC's dedicated service team offers comprehensive support to its partners.


3. Enhanced Protection with The Financial Commission Membership, providing each partner with additional compensation of up to €20,000

Separate to the UK firm, EBC Financial Group further fortifies its commitment to comprehensive client protection by joining The Financial Commission Protection Fund, offering each partner an additional layer of compensation of up to €20,000. The Financial Commission, a pioneering global entity, provides dispute resolution services within the financial industry, aligning with the integrity and transparency standards set by the British FCA and the Australian Securities and Investments Commission’s (ASIC) Internal Dispute Resolution (IDR) procedures.


4. EBC Procures Professional Indemnity (PI) Insurance exceeding USD$10 million in coverage from Lloyds of London and AON in the United States

EBC Financial Group demonstrates its dedication to rigorous compliance and operational integrity by procuring PI insurance annually, with coverage exceeding USD$10 million from esteemed insurers Lloyds of London and AON in the United States. The selection of Lloyds and AON, renowned for their longstanding reputation and robust compensation mechanisms, underscores EBC's commitment to securing formidable risk management and insurance protection for its clients and partners.


Lloyds of London, with its centuries-long history, offers an unparalleled legacy of insurance coverage, bolstered by an internal fund designed to ensure the reliability of payouts. AON, as the world's largest reinsurance brokerage firm, exemplifies excellence in risk management, further solidifying EBC's insurance framework.


EBC's insurance coverage vastly exceeds the minimum standards set by the FCA in the UK (£1 million) and ASIC in Australia (AUD$2.5 million). This substantial insurance provision, significantly higher than the norm, emphasizes EBC's proactive approach to ensuring financial security and trust, with potential compensation per individual claim reaching approximately USD$350,000.


Through these measures, EBC Financial Group not only aligns with but significantly surpasses regulatory insurance standards, offering a higher level of protection and peace of mind to its clients and affirming its status as a leader in the financial services sector committed to excellence and client security.


5. Comprehensive Protection Beyond FSCS: EBC's Multifaceted Security Approach

EBC Financial Group's dedication to safeguarding its clients extends far beyond the robust framework of the FSCS's compensation plan extended to eligible and qualified FCA clients under EBC Financial Group (UK) Ltd. Committed to delivering a multi-tiered, diverse, and comprehensive protective structure, EBC integrates its bespoke ecological construction within the stringent compliance landscape of the FCA. This holistic approach ensures that EBC not only meets but exceeds industry standards, providing unparalleled security and peace of mind to its clients.


In response to the ever-evolving global economic landscape, EBC proactively broadens its service offerings, deepening its technological infrastructure and forging alliances with esteemed institutions.


Through these concerted efforts, EBC Financial Group exemplifies its leadership in the financial services industry, embodying a forward-thinking and resilient approach to navigating the complexities of global finance. By prioritizing comprehensive protection and continuous innovation, EBC sets new benchmarks for security and service excellence, reinforcing its position as a trusted partner in the financial journey of investors worldwide.


EBC's dedication to exceeding industry standards ensures you can focus on what matters most – successful trading.

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