Does the £85k FSCS protection matter for a S&S ISA?

hgt

I wonder if anybody could help with a query I've got... I've looked at various sources but not yet found a clear answer. 

So with cash savings I understand how the £85k FSCS protection scheme works if the savings provider went bust. 

I also notice that all the S&S ISA providers state that they are also covered by the £85k FSCS protection. However is that likely to ever come into play if your money is actually invested in a diverse portfolio of stocks? Obviously you'd lose out if a stock or fund you've invested in were to fail - that's the gamble of the stock market. 

But what happens if your S&S ISA provider itself were to fail? In my mind if that were to happen, your investments would still be safe as your money is actually invested in the stocks and funds.

I guess what I'm trying to get at is this... if you have more than £85k invested with a single S&S ISA provider, and that provider were to fail, could you potentially lose money over the FSCS compensation limit?

Many thanks in advance to anyone who can help set me straight!

masonic

There are several threads on this topic. The long and short of it is that holding assets in excess of the FSCS limit is low risk if you stick to the significant providers. Cases where FSCS compensation has come into play is where the investment account provider fails, and the administrators take their costs from client assets (which they are permitted in law to do). Such costs would be apportioned between clients and will amount to a low percentage of the total assets, often capped below the FSCS limit.

Albermarle

As above, this same question has been asked numerous times .
This thread was specifically referring to HL , but comments apply to all mainstream brokers/S &S ISA providers.
What happens when a broker goes under — MoneySavingExpert Forum

The main point is that it is very unlikely that a mainstream provider will ever go under anyway .