Is my Stocks & Shares ISA covered by the Financial Services Compensation Scheme (FSCS)?

With our Stocks & Shares ISA, you can invest in a broad range of tracker (mutual) funds, exchange traded funds (ETFs) and/or US stocks. 

For our tracker (mutual) funds, if either ourselves or Winterflood Securities (our asset custodian) is declared in default which results in a loss of your investments, then you are covered for up to £85,000 under the FSCS (note that ‘loss’ in this instance doesn’t include simply where the value of your investments fall as part of general investing risk).

The majority of our fund providers are also covered by the FSCS for up to £85,000. Note, however, that the Old Mutual MSCI World ESG index and HSBC Islamic Global Equity Index Fund as well as our ETFs are domiciled outside of the UK and so are not covered by FSCS or an equivalent foreign scheme.

US Stocks are held in custody with a third-party broker-dealer (DriveWealth) registered with the SEC (the Security and Exchange Commission which regulates the US securities markets). Funds or cash held by DriveWealth is held in segregated accounts in the name of Moneybox, so a high level of protection is in place in the unlikely event of insolvency. US Stocks or cash held in custody outside of the UK are not covered by FSCS.

If you choose to hold funds as Available Cash within your S&S ISA, this is covered by FSCS. We use a range of third party partner banks to hold these funds, all of which can be found listed here.