Chip Cash ISA FSCS Protection through ClearBank - clarification requested

xtrovert

Dear forum members

I have been reading about deposits in Chip cash ISA being protected under FSCS through ClearBank. I've also checked ClearBank on FSCS website and it confirms the deposits with ClearBank are protected.

However, when I read the ClearBank FSCS document that details the exclusions it states 'A deposit is excluded from the FSCS protection if a deposit is made by a depositor which is an investment firm.'

I believe Chip is an Investment Firm. Could you please comment to clarify if the a cash ISA with hip would still be protected by FSCS taking into account the above exclusions. 

ClearBank document explaining the FSCS and the exclusions: https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://clear.bank/uploads/assets/FSCS-Information-Sheet.pdf?v=1&ved=2ahUKEwix7_HQ94yKAxX-h_0HHcHTEB0QFnoECCMQAQ&usg=AOvVaw0lAUBQtcmaQrg9lQdVmfLF

Your advice is much appreciated. 

Kind regards 

masonic

Those rules are not specific to Chip/Clearbank. They have no say in whether or not protection applies.

You won't be protected if you are depositing in the capacity of an investment firm rather than as a consumer or small business. You would probably be breaching the T&Cs of the account as well.

You are correct that any money owned by Chip Financial, which is placed in a deposit account, would not be eligible for FSCS protection, so if Clearbank went bust, Chip would potentially lose some of its own cash reserves, which may put it at risk too.

Eyeful

1. As I understand it the FSCS savings protection is there to protect the little guy like you and me.
Its not there to look after those on the list you quote, they are big enough to look after themselves. 

2. ClearBank Limited (FRN:754568), Is covered by the FSCS.

3. Go to the FCA register:  https://register.fca.org.uk/s/
(a) Type in Chip Financial Ltd (their ref number is 911255)
You will find their weblink:  https://getchip.uk/

4. If you go to the FSCS protection link: https://clear.bank/fscs-protection
You will find that ClearBank Ltd offer their services through a number of intermediaries
one of which is Chip Financial Ltd and money up to £85000, is protected.

5. If you look at the website belonging to  Chip Financial Ltd ( see below)
https://www.getchip.uk/how-we-protect-your-money
You find:
The Chip Cash ISA is powered by ClearBank Ltd
Is opened in your name, and comes with your own individual sort-code and account number.
This does imply that steps are being taken identify to your money and keep it separate from that of Chip Financial Ltd.
I suggest you read through all of "how your money is protected".

6. All the above does suggest your money will be protected.

 I hope the above helps.

xtrovert

Thank you for your advice Masonic.

Does this mean that I could lose some or all of my savings currently in Chip Cash ISA if Clear Bank or  Chip went bust. Do you suggest I should move all of my savings to a Bank that offer 100% FSCS protection because there is no investment firm involved?

xtrovert

Eyeful said:

1. As I understand it the FSCS savings protection is there to protect the little guy like you and me.
Its not there to look after those on the list you quote, they are big enough to look after themselves. 

2. ClearBank Limited (FRN:754568), Is covered by the FSCS.

3. Go to the FCA register:  https://register.fca.org.uk/s/
(a) Type in Chip Financial Ltd (their ref number is 911255)
You will find their weblink:  https://getchip.uk/

4. If you go to the FSCS protection link: https://clear.bank/fscs-protection
You will find that ClearBank Ltd offer their services through a number of intermediaries
one of which is Chip Financial Ltd and money up to £85000, is protected.

5. If you look at the website belonging to  Chip Financial Ltd ( see below)
https://www.getchip.uk/how-we-protect-your-money
You find:
The Chip Cash ISA is powered by ClearBank Ltd
Is opened in your name, and comes with your own individual sort-code and account number.
This does imply that steps are being taken identify to your money and keep it separate from that of Chip Financial Ltd.
I suggest you read through all of "how your money is protected".

6. All the above does suggest your money will be protected.

 I hope the above helps.

Thank you very much Eyeful. Sorry I read your comment after posting my last comment. 

I've read the links you provided and it does imply that the Cash ISA held with Chip/ClearBank would be protected. It's just when I read the exclusions, I was unable to conclude if the Cash ISA with a sort code and account number would be classed as a deposit held by an individual like me or someone else or an investment firm. Hence I asked the question. 

masonic

If you can answer "no" to the question: "are you one of the entities listed in (3) from your screenshot?", then it is not relevant to you.

If you are excluded from FSCS protection for this reason, then you'll be excluded wherever you keep your money.

xtrovert

Yes, the answer is No for me. Thank you all.