Do Shares Certificates held in a bank count towards the £50,000

LMCQ_2

Our share certificates from another company are held by our bank obviously not our current account. When calculating the £50,000 limit would these be taken into account?

Aegis

No. The £50000 limit is for cash savings held with that bank. Shares in your name would be ring-fenced from the company assets during wind-up, and would be returned to you in due course.

I,_Brian

If the bank were to collapse and/or be nationalised, your shares would become almost worthless, because the company no longer has any private owner value.

dunstonh

Are you saying you keep the share certificates in safe keeping at the bank or its a nominee service?

Either way the deposit protection scheme doesnt apply as they are not deposits.

DocProc

No these are documents , perhaps proving the ownership of something, that the bank is holding

1. Either as collateral for a loan of some kind or an overdraft.
2. Or just for safe keeping purposes.

I'm not at all sure what you mean or what information you are trying to convey, when you tack this bit on to the end of your first sentence:-

"....obviously not our current account."

These share certificates they are holding, will eventually be required to prove ownership of the said shares, so that the said shares can be sold.

You might like to draw a comparison by saying 'My bank is holding an envelope containing valuable documents, such as my Birth Certificate, for example.' It is holding them rather than me, just so they don't get lost.

dunstonh

You still own the shares and the contents of items held in the safe.

There is no FSCS protection needed as they are an asset in your name.