How are S&S ISAs protected by FSCS?

Type_45

Good afternoon all,
If someone were to have £65,000 in Vanguard Life Strategy in their ISA which is managed by Halifax/iWeb, how would that be protected if Halifax/Iweb (who are owned by Lloyds, I think) went bust?

And what if the stock market crashed by 50% just before Halifax/Iweb went bust?

What would you end up with? 

Thrugelmir

£32,500 in a Vanguard Life Strategy fund. 

Type_45

Thrugelmir said:

£32,500 in a Vanguard Life Strategy fund. 

On which platform though?

And also, what if Vanguard also went bust?

Thrugelmir

Type_45 said:

Thrugelmir said:

£32,500 in a Vanguard Life Strategy fund. 

On which platform though?

And also, what if Vanguard also went bust?

All here. 

https://www.fscs.org.uk/

dunstonh

How are S&S ISAs protected by FSCS?

The answer is the same as every other thread that asks this question 2-3 times a week.

If someone were to have £65,000 in Vanguard Life Strategy in their ISA which is managed by Halifax/iWeb, how would that be protected if Halifax/Iweb (who are owned by Lloyds, I think) went bust?

And what if the stock market crashed by 50% just before Halifax/Iweb went bust?

What makes you think the FSCS would pay out anything in that scenario?   The most likely scenario with iweb is that Lloyds would look to sell it if it was no longer viable.       Even if that part of the business failed, it would likely continue as a going concern pending a buyer as it has a value as a going concern and buyers would be lining up to get AUM at a cut price deal.

In the least likely outcome, failure and closure, your assets would still remain invested with a daily value.  You just wouldn't be able to access them until the administrator finds a buyer (and there will be a buyer).   They would then re-register to the new platform unless the new buyer takes on the old platform.   

The FSCS may never need to get involved or it may be used to cover the costs of the administrator. A loss is highly unlikely.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/78158276#Comment_78158276