Compensation and shares ISA

kph100

On the Financial compensation scheme website is says the scheme is designed to return the monies, if you had not invested.

So I take this to mean if you invested £3000 but with share prices changing its now worth £6000 you are only guaranteed £3000 back ??

Im thinking of getting a self select shares ISA, looking at selftrade as they do a £1.50 regular investment charge, as well as there norma; £12.50 dealing charge. But obviously concerned at moment re risk to banks / financial institutions.

Ian.

Farway

It means the money, cash, not share values

If you had £3000 sitting in cash you get it back, if you used the 3k to buy shares then eventually you will get the shares you own, not their paper value in cash

kph100

what date would the value of the shares be calculated ?

and as they are nominee accounts would you eventually get sent paper certificates ? if the stockbroker went bust ?

kph100

anyone have the answer ?

Farway

The valuation of the shares, and the date, is immaterial, you still own the shares be they worth 4p or £4 million

So if you had, say, 250 Tesco shares in a nominee account you would still own 250 Tesco shares regardless of value should the broker go belly up

I do not know if you would finish up with paper shares or perhaps moved by the shares registrar another nominee account with someone like Computershare