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S&S ISA FSCS Limits
bluebottle11
Posts: 34 Forumite
Hi, I have a S&S ISA with Halifax that exceeds £85k. I know there is a max £85k FSCS for compensation for savings, my question is what about for S&S ISAs?
As they are only holding the share certificates do I need to be concerned about exceeding the £85k and move some of my investments to another provider or not?
As they are only holding the share certificates do I need to be concerned about exceeding the £85k and move some of my investments to another provider or not?
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Comments
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my question is what about for S&S ISAs?
This is a bit of an FAQ that gets asked nearly every week. Although the search function on the site is not very good.
Investments are different to deposits. The bank can do with your savings as it sees fit. Whereas investments are invested as per your instruction and not spent by the bank. They are rinfenced. So, its only really fraud that causes terminal failure where wrongdoing takes place that you are likely to see FSCS protection kick in.
Shares themselves do not get FSCS protection at all.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Thanks for the reply. I did try and search but was receiving conflicting information. I believe that the shares are held in a 3rd party nominee account, so are protected in that way, unless as you say fraudulent practice takes place.0
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It's not just fraud. If the broker goes bust the administrators are entitled to raid the nominee account to pay themselves their fees. You have FSCS protection if that happens, the administrator will normally claim the money direct from FSCS and leave your assets alone. Typically the cost to each investor is low, say 10% of their assets.
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As you are with a mainstream provider , I would not worry . Many people on this forum have much larger sums than that with investment and pension providers. If the amount got into the hundreds of thousands , then might be wise to split across a couple of providers, just for peace of mind.bluebottle11 said:Hi, I have a S&S ISA with Halifax that exceeds £85k. I know there is a max £85k FSCS for compensation for savings, my question is what about for S&S ISAs?
As they are only holding the share certificates do I need to be concerned about exceeding the £85k and move some of my investments to another provider or not?0 -
Great, thanks for the replies, puts my mind at ease somewhat!0
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Excellent post, thank you. Saves me boring everyone by asking it again.It'll be alright in the end. If it's not alright, it's not the end....0
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