Regulation 

How are my investments protected?

How are my investments protected?

In the past couple of years I and members of my family have put quite a lot of money into tracker funds; some in individual savings accounts (Isas) and self-invested personal pensions (Sipps) and some outside of these in general nominee share trading accounts. Most of this money is in trackers, with some in individual shares. My question is this: how safe is the money in these accounts. Obviously there is market risk holding shares and tracking indexes, but what would happen if the solvency of either the platform provider, eg Hargreaves Lansdown, or the investment company tracking an index, eg Legal & General or Vanguard, became an issue? Is there some level of protection for your assets akin to the Financial Services Compensation Scheme (FSCS) for deposits and/or is there an industry scheme to ensure the protection of investors' assets?

T Whalley

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