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COFUNDS liability for employee fraud

I asked them a question regarding this. It is of some concern to me because if you register a load of funds with one platform, an employee there has sufficient access to cash them all in and run off with the money.

The reply was amazing: their liability is limited to the £50k per investor.

I would have thought this was true for the bank which acts as the unit trust trustee going bust, but nothing else. An organisaton's liability to a customer for an inside fraud should be to the full value of the customer's loss, surely?

Reply to
Postman Pat
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I thought the £50k was the liability of the bailout fund, not the financial institution. I assume the latter has full liability, but you will not get money beyond the £50k if they don't have the money themsel ves.

Reply to
David Woolley

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