OEICs/Funds - FSCS protection

Zaraf

Hi

I have an ISA with Hargreaves Lansdown which is invested in funds 

Does the £85k protection limit apply at a brand level (e.g Vanguard as a whole) or at a legal entity level (eg a specific entity within Vanguard group)

the FSCS website states the limit is per firm, but this is not clear

Thanks 

masonic

It depends what you are claiming for.  If, for example Hargreaves Lansdown failed, it would be any loss of assets held by them you suffered as a result of their failure. If it was Vanguard, it would be any loss from your Vanguard funds. Protection is likely to be at the group level, as multiple group companies would be placed into administration together if they failed and/or were interdependent.

Albermarle

Zaraf said:

Hi

I have an ISA with Hargreaves Lansdown which is invested in funds 

Does the £85k protection limit apply at a brand level (e.g Vanguard as a whole) or at a legal entity level (eg a specific entity within Vanguard group)

the FSCS website states the limit is per firm, but this is not clear

Thanks 

To put things in perspective, if Vanguard, or even HL for that matter, failed, it would mean we would be in a financial Armageddon and money would probably be largely worthless anyway. 

GeoffTF

Zaraf said:

Hi

I have an ISA with Hargreaves Lansdown which is invested in funds 

Does the £85k protection limit apply at a brand level (e.g Vanguard as a whole) or at a legal entity level (eg a specific entity within Vanguard group)

The FSCS protects you up to a loss of £85K resulting from the collapse of HL. It also protects you up to a loss of £85K resulting from the collapse of Vanguard UK. It does not protect you from a loss resulting from the collapse of Vanguard in the Republic of Ireland. It does, however, protect deposits (not losses) up to £85K for UK bank deposits that Vanguard makes on your behalf. I do not expect that Vanguard would allow its UK or Ireland outposts to collapse, and I do not expect that it would allow its UK investment platform to collapse either.