S&S ISA from old ISA cash

thenewcomer

Hi all,
I already opened (and max out) my ISA allowance this year. I did opened a S&S ISA account this year.
I have some old ISA cash that I would like to invest in the stock market. May I ask if I am allowed to open a S&S ISA account on a new platform and fund it using this old cash ISA? 
PS: The reason I want to fund another S&S ISA account, rather than the old one is to diversify in case of platform failure.

Steve182

Are you really concerned about platform failure?
You're protected up to about £80K I understand (others will confirm the exact amount)
Your platform also needs to keep clients money in a separate account from theirs.
I have a high 6 figure sum in one platform, AJ Bell, ....that causes me no concern

Aceace

thenewcomer said:

Hi all,
I already opened (and max out) my ISA allowance this year. I did opened a S&S ISA account this year.
I have some old ISA cash that I would like to invest in the stock market. May I ask if I am allowed to open a S&S ISA account on a new platform and fund it using this old cash ISA? 
PS: The reason I want to fund another S&S ISA account, rather than the old one is to diversify in case of platform failure.

Yes you can open a new S&S ISA and fund it with cash from a previous tax year's cash ISA funds of any amount. You need to initiate the transfer using the receiving ISA's transfer process. 

thenewcomer

Aceace said:

thenewcomer said:

Hi all,
I already opened (and max out) my ISA allowance this year. I did opened a S&S ISA account this year.
I have some old ISA cash that I would like to invest in the stock market. May I ask if I am allowed to open a S&S ISA account on a new platform and fund it using this old cash ISA? 
PS: The reason I want to fund another S&S ISA account, rather than the old one is to diversify in case of platform failure.

Yes you can open a new S&S ISA and fund it with cash from a previous tax year's cash ISA funds of any amount. You need to initiate the transfer using the receiving ISA's transfer process. 

thanks that was helpful.

thenewcomer

Steve182 said:

Are you really concerned about platform failure?
You're protected up to about £80K I understand (others will confirm the exact amount)
Your platform also needs to keep clients money in a separate account from theirs.
I have a high 6 figure sum in one platform, AJ Bell, ....that causes me no concern

85k i think.
yes i would rather play safe. they are going to be long term investments anyways, so its not like i have to log on to all of them weekly. 

Albermarle

thenewcomer said:

Steve182 said:

Are you really concerned about platform failure?
You're protected up to about £80K I understand (others will confirm the exact amount)
Your platform also needs to keep clients money in a separate account from theirs.
I have a high 6 figure sum in one platform, AJ Bell, ....that causes me no concern

85k i think.
yes i would rather play safe. they are going to be long term investments anyways, so its not like i have to log on to all of them weekly. 

The chance of a mainstream platform going bust is pretty remote , they are not like banks lending out money they may never get back. Having a few hundred thousand on one platform is quite normal , even some with seven figure sums apparently .
Some platforms charging structure even have special charges for those with over a Million ( usually zero ) so there must be quite a few in this position.

Alexland

Albermarle said:

Some platforms charging structure even have special charges for those with over a Million ( usually zero ) so there must be quite a few in this position.

If you have several million invested across multiple S&S providers then it might be fine to have over a million on a single platform but if it's your only million then some platform and fund manager diversity might be worthwhile so you don't lose too badly in the unlikely event of mass unrecoverable fraud, etc. Like much of investing it's about having a view on what proportion of your wealth you are risking from the strategy you choose to use.