Are you exposed to the coming financial defaults?

The collapse of spread betting provider Worldspreads has taught us one very important lesson, says Bengt Saelensminde. It's vital to always diversify your exposure to a potential default. Here's why.

First, an apology. I'm sorry if you followed me into the spread bet on a euro break-up with Worldspreads. As you may be aware, Worldspreads' shares were suspended on Friday and the firm went into administration on Sunday. And it's left behind a rather messy situation for anyone with an account.

I expect to get my money back as the firm is regulated by the FSA and covered by the Financial Services Compensation Scheme (FSCS). But now is a good time to take a look under the bonnet of this compensation scheme. Because it's widely misunderstood.

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Bengt graduated from Reading University in 1994 and followed up with a master's degree in business economics.

 

He started stock market investing at the age of 13, and this eventually led to a job in the City of London in 1995. He started on a bond desk at Cantor Fitzgerald and ended up running a desk at stockbroker's Cazenove.

 

Bengt left the City in 2000 to start up his own import and beauty products business which he still runs today.