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ii cash held in trading account

Hypothetical scenario: 
I transfer £250,000 into an ii trading account (all within a non-ii sipp). Assuming this is not invested, protection wise ii states the following:
'Any money (cash) held in your account is treated as ‘client money’ as defined by the FCA. This means your money also has trust status, and is deposited across a range of
bank accounts specially designated as holding client money. At no point does your cash enter an ii bank account.'
Does that mean the £250k is split over several banks so that in the event of a failure the whole amount is protected?  
Thanks in advance, I did try speaking to them but got vague contradictory responses.

Comments

  • Albermarle
    Albermarle Posts: 29,748 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    My Provider ( not II ) splits cash between three banks in varying proportions ( you can find the % on their website) . However I do not think there is any guarantee that there will be a max £85K of client cash in any one account. 
    At the end of the day these investment  platforms are not really designed for  holding large amounts of cash . It's a secondary/temporary  service that they probably make little money on, if any.
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