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

29 July 2021

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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 Claire Slater

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

Claire Slater

Financial Adviser

I started my career at Perspective Financial Group Ltd in 2017, and prior to this I worked within the Equine industry. I work with a variety of clients, providing them with holistic financial advice, and help them to plan and achieve their specific financial goals.