Please read this if you have a PO Cash ISA

DonCorbata

I think there may be a catch in the security of Post Office Cash ISA's. I have tried to find the correct answer without sucess. Below is a question I have put to members of this forum before, but nobody replied. I am hoping the new title will focus attention on what I perceive is a possible unidentified risk. Perhaps someone who has a POST OFFICE Cash ISA already managed to find the answer? Here is the question:-
The cover (overall 100%) by Bank of Ireland/Irish Government/Compensation Scheme of the Post Office Cash ISA is well known. However, to get a PO Cash ISA, one has to sign over the authority to "Hold the cash subscription, ISA investments, interest and any other rights or proceeds . . . ." to a Limited company!
Can anyone point to where I can confirm that, with signing the application, and thereby granting that authority to Family Equity Plan Limited/Family Investments (as opposed to the POST OFFICE), one will at not, even for a transitional period, suffer less coverage than the passed down BoI guarantee?
I really have tried everywhere to get the answer. If the cover is there, all I want is to see it confirmed officially! Please don't ask me to assume that the invitation to sign means something different than is written on the paper beside where one has to sign!

KingL

I can't claim to know the first thing about it, but from a bit of googling, it looks like the PO is just acting as an agent for Family Equity Plan Limited

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The Post Office® ISAs are provided by Family Investments.

1Includes 1.5% bonus on all deposit made in the 2008/09 tax year for 12 months from the first deposit.

2 AER stands for Annual Equivalent Rate and illustrates what the interest would be if interest was paid and compounded once a year. Interest is variable, calculated daily and paid annually in March.
3 Comparison based on all cash ISAs in the UK market. Source: Moneyfacts 01/08/2008.
Family Investments is the trading name of Family Investment Management Limited (Co. No. 1915516) and Family Equity Plan Limited (Co. No. 2208249), which are authorised and regulated by the Financial Services Authority. Registered in England and Wales at 16-17 West Street, Brighton, East Sussex BN1 2RL

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from : http://www.postoffice.co.uk/portal/po/jump1?catId=19300232&mediaId=82300737



Seem to have had a colourful history... http://www.creditgate.com/companysearch/FAMILY+EQUITY+PLAN+LIMITED.aspx

miserable_ol_so_n_so

In my humble opinion, you will find that in the end, your question will only be answerable by lawlords, taking many years to answer it, at a cost of some 5 million pounds. If i were u , i would walk away from any product that you can not understand by reading it. u should not need to be a lawyer. i am not aware of your circumstances, but unless the interest rate is extremely high, spread your money about institutions, less than 50,000 per institution. look at natwest isa, pays over 7%taxfree, on transferring 27k i think. Bet u the post office doesent pay this. Walk with your feet if they cant explain to you what their blurb means.

KingL

Also, see related thread here: http://forums.moneysavingexpert.com/showthread.html?t=1164305