FSCS limit and S&S ISAs

littlemole22

I've got a FTSE all-share index tracker over 120k with Octopus Money, previously Virgin, well over the FSCS compensation limit of 85k. Should I transfer half to another provider to bring it back under the limit, or is it not a concern with stocks and shares? If they were to fail would I lose anything above 85k, or would I still own the shares? I asked Octopus, but they just confirmed the limit.

flaneurs_lobster

That £85k limit applies to uninvested cash held in your S&S ISA, not to the investment in S&Ss.

If Octopus go bust your investments remain your investments, their management can be 'simply' moved to another provider.

anotherquestion

Isn't it 120k now?

born_again

https://forums.moneysavingexpert.com/discussion/6670085/fscs-limit-and-s-s-isas

Keep up at the back Dec 2025 limit increased to £120k

https://www.fscs.org.uk/what-we-cover/banks-building-societies-credit-unions/deposit-limit-increase/

jimjames

https://forums.moneysavingexpert.com/discussion/comment/82014389#Comment_82014389

Keep up at the front too! Although the amount for cash deposits has increased the amount for investments has remained at £85k.

Isn't it 120k now?

As above, only for cash deposit accounts

wmb194

https://forums.moneysavingexpert.com/discussion/comment/82014373#Comment_82014373

It covers your investments for fraud, maladministration and broker/platform wind-up expenses.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82014479#Comment_82014479

AS above- and if you stick with mainstream providers of S&S ISA's, it is very unlikely anything will ever happen.

Many people hold Hundreds of thousands of Pounds with one provider with no worries.

dunstonh

Many people hold Hundreds of thousands of Pounds with one provider with no worries.

millions of pounds even.

Mainstream providers and mainstream fund houses. Diversifying the fund houses does no harm. Many of those using index trackers typically do so naturally, as no single fund house has the best trackers across all areas. So, when they build their portfolio, they would typically have multiple fund houses. Using a single provider/platform using their own brand funds does increase the risk. However, if they are profitable and well capitalised, then it's not a big deal.