Stocks and Shares ISA Question
Discussion
Bobtherallyfan said:
SV_WDC said:
Protection is only eligible on current, savings accounts, cash ISA & fixed-term deposits
So S&S ISA with the funds invested in the market are not covered. The exception (I believe) would be if you are holding cash in the account
Not my understanding..if your Stocks and Shares ISA or SIPP provider goes bust your money and assets are protected by the Financial Services Compensation Scheme (FSCS) if the provider is a firm regulated by the Financial Conduct Authority (FCA). The primary protection you enjoy is that the FCA forces authorised firms to separate their money and assets from your money and assets, but if there's a shortfall the FSCS steps in as a last resort up to a value of £85,000. Basically the system relies on regulatory safeguards.So S&S ISA with the funds invested in the market are not covered. The exception (I believe) would be if you are holding cash in the account
It seems a lot of people investing in S&S believe they are protected by the £85k if the fund fails, despite all the warnings 'your capital is at risk.'
Several were in for a rude awakening when the Woodfood fund failed in 2019.
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