What protection for buying shares through Halifax account ?

Kellm9

Hi,

Maybe wrong forum or already been asked but I can't find anything similar so,

If I buy shares through my Halifax share dealing account what protection do I have if the very worst was to happen to the Halifax ? Would they be included in the £35k protection or is it a totally separate thing ?

Who would own the shares and how would I access them ? Is it possible that I would loose the shares as they would be held in a Halifax nominee account ?

Is that clear ?

Thanks
Kellm9

kph100

Id also like to know the same, currently have a halifax sharebuilder but also tempted to buy shares at mo with a ISA self select through maybe selftrade or barlclays

lizb3112

I'm in the same boat. I've sent an e-mail to the Halifax to ask the very same question and have suspended my regular investment into Sharebuilder until I get a reply. I'll post their reply as soon as.

lizb3112

I've just had a response from Halifax regarding the safety of the sharebuilder scheme and it's very reassuring. This is taken from their e-mail:


The stock you hold with Halifax Share Dealing is held in a nominee company which ensures that it is appropriately segregated from the assets of the company. This means that your assets will at all times be clearly identifiable as belonging to a customer and not HSDL. Similarly, cash is held in separate client bank accounts and is segregated from HSDL's assets.

In the unlikely event that these segregated assets were unavailable for distribution and HSDL were unable to meet claims made against it, all eligible customers would be able to make a claim on the Financial Services Compensation Scheme (FSCS). This scheme provides compensation of up to 100% of the first £30,000 and 90% of the next £20,000, to a maximum of £48,000.

I can confirm that you own the shares within your ShareBuilder account as these are purchased in the normal manner in your name. With regards to the effects of the merger, I can confirm that no announcements have been made in this respect, therefore the ShareBuilder facility will continue to run as normal. In the event of a a successful merger and a change of withdrawal to the facility is made, this will be communicated in good time to all ShareBuilder account holders.

Hope this helps people

dorset972_2

Thanks for that copy of email. I think I might have a dabble with a few quid now.:j