Multi-asset investment platform eToro today announced the launch of an insurance scheme that will provide its clients up to £1million of protection in the case of insolvency free of charge.
With 15 million registered users globally, this is a significant step for the world’s leading social investment platform, delivering additional peace of mind to clients around the world. It signals the fintech’s ongoing commitment to providing the best possible user experience and safeguarding client wellbeing. The insurance will form the third layer of protection for clients after segregated trust accounts and regulatory protections.
In the unlikely event that eToro were to enter a state of insolvency, the policy would kick in to cover clients for losses above the relevant financial compensation schemes to a value of £1million, and in accordance with the purchased policy. In the UK, this is the Financial Services Compensation Scheme, which covers up to £85,000 held in investments.
The insurance will be provided automatically to clients, with no additional cost or requirements to register. Cover will extend to both cash held on the platform and open accounts, with only cryptoassets excluded from the policy as they are unregulated assets.
The insurance is underwritten by Lloyds of London, one of the world’s leading providers of specialist insurance.