Can a Stocks and Shares ISA be REPAIRED?

Exodi

eskbanker said:

Exodi said:

Maybe I'm missing the point or perhaps because I've missed the context provided by the first (now deleted) thread, but my initial impression is that I'm suprised you're primary concern is the reinstatement of past ISA annual limits rather than the apparent loss of nearly a quarter of a million pounds by a fraudulent fund manager? 

The first thread clarified that OP was invested via WealthTek, and included links to various explanatory articles about their fate, such as:

https://www.fscs.org.uk/making-a-claim/failed-firms/wealth-tek/

https://www.fca.org.uk/news/fca-orders-wealthtek-cease-operations-high-court-appoints-interim-managers

Thanks, that was a sad read

The FCA is working closely with the Joint Special Administrators and is aware of the potential shortfall of £81.4 million in Client Assets and Money associated with WealthTek as at 6 April 2023

aaj123

Can someone enlighten me how stocks / shares can get 'Stolen'? I can understand cash being obfuscated into various destinations due to being fungible but stocks / shares? How is it even possible for them to get stolen and not tracked down trivially?

eskbanker

aaj123 said:

Can someone enlighten me how stocks / shares can get 'Stolen'? I can understand cash being obfuscated into various destinations due to being fungible but stocks / shares? How is it even possible for them to get stolen and not tracked down trivially?

It's unlikely to be worthwhile to take this thread down the same route as the deleted one, but essentially the scenario here is that investors paid money to a company, on the basis that it would then be invested, but it wasn't.

aaj123

eskbanker said:

aaj123 said:

Can someone enlighten me how stocks / shares can get 'Stolen'? I can understand cash being obfuscated into various destinations due to being fungible but stocks / shares? How is it even possible for them to get stolen and not tracked down trivially?

It's unlikely to be worthwhile to take this thread down the same route as the deleted one, but essentially the scenario here is that investors paid money to a company, on the basis that it would then be invested, but it wasn't.

Ah so all along investors were shown fictitious numbers on a screen as being shares they owned?

eskbanker

aaj123 said:

eskbanker said:

aaj123 said:

Can someone enlighten me how stocks / shares can get 'Stolen'? I can understand cash being obfuscated into various destinations due to being fungible but stocks / shares? How is it even possible for them to get stolen and not tracked down trivially?

It's unlikely to be worthwhile to take this thread down the same route as the deleted one, but essentially the scenario here is that investors paid money to a company, on the basis that it would then be invested, but it wasn't.

Ah so all along investors were shown fictitious numbers on a screen as being shares they owned?

Basically, yes, and hence "the potential shortfall of £81.4 million in Client Assets and Money associated with WealthTek as at 6 April 2023".

Redfox510

Exodi said:

Maybe I'm missing the point or perhaps because I've missed the context provided by the first (now deleted) thread, but my initial impression is that I'm suprised your primary concern is the reinstatement of past ISA annual limits rather than the apparent loss of nearly a quarter of a million pounds by a fraudulent fund manager? 

Hi Exodi
The reason is basically I am 81 yrs old and it is actually my Spouse's ISA I want to repair, The reason is our S&S Isa''s was a very good Tax-free package, that we used to provide our own pension in the future, we started with PEP's in 1987 I think, and as we didn't have any pension schemes State or Private  we created our own pensions(We thought we were being very prudent )

If I can reinstate her OLD Isa to the £300,000 it will provide her with a decent monthly income to help  pay for medical care or a care home in the future.

Over the years I kept checking that the Managers were FCA authorised and telephoned the FCA on many occasions and was actually told, yes your portfolio is held in a Nominee account in your name and if the company (Isa Manager ) fails your portfolio is safe. 
With regard to the loss we have to look at the glass half full, we do get upset and stressed sometimes, well most of the time

jimjames

Redfox510 said:

Exodi said:

Maybe I'm missing the point or perhaps because I've missed the context provided by the first (now deleted) thread, but my initial impression is that I'm suprised your primary concern is the reinstatement of past ISA annual limits rather than the apparent loss of nearly a quarter of a million pounds by a fraudulent fund manager? 

If I can reinstate her OLD Isa to the £300,000 it will provide her with a decent monthly income to help  pay for medical care or a care home in the future.

If you have another £300,000 sitting there to repair it with then the ISA status probably has little relevance if you have no other income as you've said as the income should be within your personal tax allowances. Or is the expectation that the repair will return all your money to the existing ISA?

masonic

There was another poster that posted about getting embroiled in the WealthTek fiasco about a month ago, although it wasn't clear to them initially that they were a victim of it:

https://forums.moneysavingexpert.com/discussion/6461222/fca-loss-of-supplementary-income/

There may be some details contained therein that could be helpful when considering potential recoveries.

To answer the question on ISA eligibility, it is normally the case that FSCS compensation in respect of ISA money comes with an additional permitted subscription letter allowing a sum equivalent to the valuation of the ISA at an appropriate date to be subscribed to a new ISA. Beyond the compensation you receive (which will be reduced by the cost of the administration), you'd need to use your own remaining money to fund any additional subscriptions, and the additional allowance usually expires after 12 months.

If you believe that your losses are the result of negligence on the part of the FCA, then you do have the option of raising a complaint and seeking redress through their complaints scheme. See https://www.fca.org.uk/about/how-we-operate/complain-about-regulators

The bar is high for such complaints. Also don't expect quick results. I submitted a complaint against the FCA in 2018 due to them listing a firm as authorised on their register when it turned out they had no authorisation, and due to a criminal investigation and trial, the complaint was repeatedly deferred until a couple of months ago. I've yet to receive any substantive response to my allegations.