Vanguard ISA question

DettaWalker

Hi,
I couldn't find my question via search but it may have been answered before. I know that there's only FSCS protection up to 80/85k in deposits.

How does that relate to investment ISAs? What happens if companies like Nutmeg or Vanguard go bust? Is it protected at all? I know I technically own the shares and they have nothing to do with these brokers but is it unwise to have more than a certain amount in investment ISAs with the same broker?

Thank for your help!

Albermarle

DettaWalker said:

Hi,
I couldn't find my question via search but it may have been answered before. I know that there's only FSCS protection up to 80/85k in deposits.

How does that relate to investment ISAs? What happens if companies like Nutmeg or Vanguard go bust? Is it protected at all? I know I technically own the shares and they have nothing to do with these brokers but is it unwise to have more than a certain amount in investment ISAs with the same broker?

Thank for your help!

It has been asked and answered numerous time before but the search facility of the forum is not very good !
As you say you own the shares, funds, so although they might be unavailble for a while, you would still own them.
The investment platform is covered for £85K in case of fraud or maladministration.
In general the risks involved are so small, then nobody really worries about it too much.
If Vanguard go bust then we are all probably doomed anyway.

GeoffTF

Vanguard or Nutmeg, do not worry. A small broker that advises its clients to buy dodgy investments, do worry. One of them goes bust every few years. Nonetheless, in recent cases, most clients were compensated eventually, particularly if their investments were less than £1 million.

JohnWinder

It has been asked and answered numerous time before but the search facility of the forum is not very good !

Here's your chance to test out a search strategy with a dedicated search 'engine' if this site's search function is so poor: fscs protection for isa site:forums.moneysavingexpert.com

Limit your search to this site. Might save some ink.