FSCS Protection for Investments
Discussion
I have an investment ISA with Fidelity and one with Nutmeg. I'm trying to understand how my FSCS protection works in each case. I know that the amount is £50,000 per person per firm, but I'm not 100% sure how this translates to my investments.
With Fidelity, my understanding is that they are just a broker, so even if I had over £50k invested via Fidelity, it wouldn't matter if they go bust because I actually own my investments directly and this will be reflected with the registrar. But if I had over £50k invested with a single fund provider, if that fund provider went bust, I would only be protected up to £50k?
Does the same apply to Nutmeg? They aren't a broker, but they still invest in funds behind the scenes, but I have a feeling that the way they are structured means that I never actually own any of the funds?
Thanks.
With Fidelity, my understanding is that they are just a broker, so even if I had over £50k invested via Fidelity, it wouldn't matter if they go bust because I actually own my investments directly and this will be reflected with the registrar. But if I had over £50k invested with a single fund provider, if that fund provider went bust, I would only be protected up to £50k?
Does the same apply to Nutmeg? They aren't a broker, but they still invest in funds behind the scenes, but I have a feeling that the way they are structured means that I never actually own any of the funds?
Thanks.
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