FSA Compensation Thoughts

baldbloke_2

I note that the Savings & Investments for Saga are 'provided by' Birmingham Midshires who offer Savings in their own name of course. They in turn are a 'division of' Halifax plc who again obviously offer savings in their own right. Just a (very) daft question but if BM collapsed one day (and I know it ain't gonna happen) would a person having savings with both Saga and BM be covered for both investments separately by the compensation scheme and therefore receive 2 x £2000 + 90% etc. etc.
Additionally do the Halifax and BM count as separate providers for the purposes of the FSA. Would investments with both be considered as 2 separate claims if the unthinkable happened.
Excuse this early morning flight of fancy but the idea of spreading one's load to cover such eventualities would be somewhat negated if a person might lose several holdings in one companies failure.

Milarky

I suspect that you're on the right lines. Subsidiaries generally trade independently of parent companies and if one fails the other is protected from creditors [etc]. The corollary of this principle is that the same coustomer banking with a parent and with its subsidiary is a separate 'creditor' from protection purposes. Therefore you'd get two lots of 'protection' rather than only one. [So I'm 99% sure you are correct]

Anyone know?