What financial protection do you get if you open a stocks and shares ISA with Hargreaves Lansdowne? And if I have another product say a SIPP, are they added together?
22 March 2022
Question by DOUGLAS
If you open a stocks and shares ISA with Hargreaves Lansdowne what financial protection do you get? Is it £85k? And if I have another product say a SIPP, are they added together?
Answered by Tim Brienza
Hi Douglas,
The goalposts have moved a fair bit with this in recent times but the latest legislation means that you'd be covered up to 100% of £85,000 per institution, via the Financial Services Compensation Scheme (FSCS) so long as it was a qualifying and regulated provider.
The good news is Hargreaves Lansdown would certainly fall into this category, but you would not get £85,000 worth of cover per product, e.g. ISA and SIPP. The £85,000 limit is per institution. As an example, if you had £50,000 in your Hargreaves Lansdown ISA and £50,000 in your Hargreaves Lansdown SIPP, you would only be covered for up to £85,000, not the full £100,000.
If it's a concern and you have more than £85,000, it may be advisable to use a different provider for different products. Using the above example, if you had £50,000 in your Hargreaves Lansdown ISA and £50,000 in a SIPP with a different provider, you'd likely be covered up to the full £100,000.
Hope that helps Douglas.
Tim
Answered by
Tim Brienza
Chartered Financial Planner
I started my career wanting to be a lawyer however I soon pivoted into personal finance after university. The eye for detail that I honed while studying law lends itself well to financial planning and now, 7 years later, I am a Chartered Financial Planner and a Fellow of the Personal Finance Society - the highest accreditation possible through the CII.
