What happens if a stockbroker gets banktrupt?

Onawingandaprayer

Must be someobody out there who knows the definitive answer to this concern.

Particulalry in my case with regard to Co-Funds and Selftrade.

What would happen to our share and fund-holdings in the hopefully very unlikely event of either of them going down?

Anyone?

ad44downey

You should probably send selftrade a secure message and get a definitive answer not just opinions on here. Ans please post their reply on here afterwards.

Blah99

Onawingandaprayer wrote: »

Must be someobody out there who knows the definitive answer to this concern.

I've given you one.

Look at this a different way. Say, on March 1st, you went to Land of Leather and bought a sofa for cash. They give you a delivery date of March 20th, but on March 19th they went under and receivers were brought in. The receivers cannot take the sofa you bought and sell it as a Land of Leather asset against debts. Even though Land of Leather don't make the sofa, have bought it on your behalf and are storing it in their warehouse, it's still your property.

The same is true for shares held in a nominee account. You have given Selftrade cash to buy an asset on your behalf. Simply because your agent - Selftrade - goes under does not relinquish your ownership of the asset. When you execute a trade you'll receive a contract note from your broker, which is your proof of ownership of that asset.

influence

Blah99 wrote: »

I've given you one.

Look at this a different way. Say, on March 1st, you went to Land of Leather and bought a sofa for cash. They give you a delivery date of March 20th, but on March 19th they went under and receivers were brought in. The receivers cannot take the sofa you bought and sell it as a Land of Leather asset against debts. Even though Land of Leather don't make the sofa, have bought it on your behalf and are storing it in their warehouse, it's still your property.

The same is true for shares held in a nominee account. You have given Selftrade cash to buy an asset on your behalf. Simply because your agent - Selftrade - goes under does not relinquish your ownership of the asset. When you execute a trade you'll receive a contract note from your broker, which is your proof of ownership of that asset.

So I probably start printing the contract notes whenever I have a deal in case the online system goes as well.

GordonGecko

You are covered up to £35K, FOS (financial ombudsman scheme)