FSCS £85,000 Protection

[Kingstepper]

Hopefully a simple question someone can answer - are shares held in an ISA (or dealing account) protected above the £85,000 limit if the bank etc went t#ts up?

Obviously if there was fraud and shares were never purchased they wouldn't be...

[Brighty]

Hopefully a simple question someone can answer - are shares held in an ISA (or dealing account) protected above the £85,000 limit if the bank etc went t#ts up?

Obviously if there was fraud and shares were never purchased they wouldn't be...

Just the £85k i believe

From google

Stocks and shares ISA protection
When you invest in a stocks and shares ISA, the Financial Services Compensation Scheme (FSCS) protects your investments up to £85,000 per person, per firm you invest with.This means that even if your stock and shares ISA collapses, you will have £85,000 of your deposits protected. However, it’s important to note that this stocks and shares ISA protection only covers the holding company and doesn’t apply to losses from your actual investments.

Like any financial investment, a stocks and shares ISA is not completely free from risk; it can earn you money and it can lose you money as the market shifts. If this is something you aren’t comfortable with, it could be worth exploring different types of ISAs or traditional savings accounts instead

[draftsmann]

Obviously if there was fraud and shares were never purchased they wouldn't be...

There are a few claims management companies now actively pursuing claims on behalf of fraud victims against banks in cases of investment fraud. I mean banks which process outgoing or incoming payments from consumers’ accounts and into the fraudsters’ accounts.

[Montello]

Just the £85k i believe

From google

Stocks and shares ISA protection
When you invest in a stocks and shares ISA, the Financial Services Compensation Scheme (FSCS) protects your investments up to £85,000 per person, per firm you invest with.This means that even if your stock and shares ISA collapses, you will have £85,000 of your deposits protected. However, it’s important to note that this stocks and shares ISA protection only covers the holding company and doesn’t apply to losses from your actual investments.

Like any financial investment, a stocks and shares ISA is not completely free from risk; it can earn you money and it can lose you money as the market shifts. If this is something you aren’t comfortable with, it could be worth exploring different types of ISAs or traditional savings accounts instead

Are you sure that is correct. I thought it only protected cash deposits. Investments are usually ring fenced in a client account for protection against the platform failing.

[Tifa]

Hopefully a simple question someone can answer - are shares held in an ISA (or dealing account) protected above the £85,000 limit if the bank etc went t#ts up?

Obviously if there was fraud and shares were never purchased they wouldn't be...

The £85k is for cash deposits.
If the investment is held in shares it would be highly unlikely that the £85k would be held in specific bank shares.
More likely would be a bank portfolio mix invested in multi assets/funds.
Unlikely you would be covered in the event of a collapse unless you could demonstrate that the product had been mis-sold.

[Halitosis]

Are you sure that is correct. I thought it only protected cash deposits. Investments are usually ring fenced in a client account for protection against the platform failing.

This is also my understanding. If an investment management firm goes kaput then the assets under management are not affected and moved (by the FCA) to an alternative manager. All client assets should be held separately under CASS rules.

[Kingstepper]

Are you sure that is correct. I thought it only protected cash deposits. Investments are usually ring fenced in a client account for protection against the platform failing.

This does seem to be correct, though also appears to appy to cash https://www.iweb-sharedealing.co.uk/...formation.html

Security of customers' assets - Segregation

Stock - all customer stock held by us is registered into the name of a nominee company controlled by us. This is a non-trading company and the record of accounts clearly identifies those stocks as being held on behalf of customers.
Cash - all customer money is held in bank accounts specifically designated as holding client money. This clearly distinguishes client money accounts from those accounts maintained by us for our own money.
This means that in the event of our insolvency customer stock and cash would be ring-fenced. The administrative receiver, who would need to be approved by the Financial Conduct Authority, would be prevented from distributing the assets from these accounts to anyone other than the customers to whom it belonged.

[100thmonkey]

What do you do over £85k? Have the pain in arse of opening with another bank! ?

[Casper]

This is also my understanding. If an investment management firm goes kaput then the assets under management are not affected and moved (by the FCA) to an alternative manager. All client assets should be held separately under CASS rules.

Agreed it’s only the cash element that’s protected. The underlying assets (stocks, shares bonds etc) have not gone bust and will be transferred to another IM.

[Casper]

What do you do over £85k? Have the pain in arse of opening with another bank! ?

For cash held accounts i.e current accounts, savings, deposits, cash ISAs etc then yes it would be prudent to spread your savings around. There are some situations e.g proceeds from a house sale where a larger limit would be protected but this would be temporary

[100thmonkey]

For cash held accounts i.e current accounts, savings, deposits, cash ISAs etc then yes it would be prudent to spread your savings around. There are some situations e.g proceeds from a house sale where a larger limit would be protected but this would be temporary

That’s a pain, prefer just one bank for eadse

[Montello]

What do you do over £85k? Have the pain in arse of opening with another bank! ?

I guess the average person would say that is a nice problem to have.

Many would say if you have over £85k you should buy more stocks and shares.

Otherwise, take the risk of bank collapse and losing everything over £85k or open a new account. Check bank licenses first though as it’s not always clear who owns which brand.

But the answer here is buy more watches.

[100thmonkey]

I assume business accounts dont follow those rules


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[draftsmann]

The OP alluded to fraud, which does open up other avenues for possible recovery. Is there evidence of fraud here?

[Tifa]

What do you do over £85k?

Buy more watches, silly.

[guli]

Buy more watches, silly.

Or cars!