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    Is the £85,000 FSCS protection applicable to two ISA's with two different providers?

    29 July 2021

    Question by Steve

    Good morning

    My question relates to the £85,000 FSCS protection. I invest in the Vanguard Lifestrategy 60/40 fund via an ISA with Fidelity. I also invest in the Vanguard Lifestrategy 80/20 fund via a General Account and ISA. I do this directly with Vanguard. Is the £85,000 FSCS protection applicable to both providers irrespective of them both containing Vanguard funds? All are solely in my name and I am essentially asking if I have £170,000 protection (£85,000 x2). Thank you

    Answered by Boring Money

    Hi Steve,

    Thank you for your question, it is an important one.

    The Financial Services Compensation Scheme (FSCS) exists to protect clients of FCA (Financial Conduct Authority) authorised firms and covers deposits, insurance, and investments.

    For investments, the compensation limit is £85,000 per individual, per fund manager. This means the £85,000 limit would be spread across all of your investments as they are invested with the same fund manager.

    Which effectively means that you only have one £85,000 available to you in respect of the funds you have invested within the Vanguard Lifestrategy funds, regardless of which platform or provider they are held with.

    By necessity, this briefing can only provide a short overview and it is essential to seek professional financial advice before applying the contents of this article. This briefing does not constitute advice or a recommendation.

    Answered by

    Boring Money

    Here to help you understand your options and make smart money choices.

    Important stuffHolly and the team have worked in the finance industry for many years but we are not regulated to give you personal financial advice. For every story on this website about a good investment, or something which went up by 10% or made someone £200, we could also share a story about a bad investment, something which fell in value or lost someone £200. We aim to provide general information and pointers – and btw we are totally agnostic about which providers you might pick – but if you have complex affairs, want personalised advice or need specific recommendations, please look at advice pages and see if regulated digital or traditional financial advice would be the best solution for your needs. Boring Money Ltd is a limited company registered in England and Wales under registration number 09459832 and we have our registered office at 10 Lower Thames Street, London, England, EC3R 6AF.
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    Boring Money Ltd is a limited company registered in England and Wales under registration number 09459832 and we have our registered office at 10 Lower Thames Street, London, England, EC3R 6AF.