I'm probably being over-cautious here ... but are sharedealing nominee accounts held in trust as separate assets from the bank, or are they pooled in with the banks assets? The implication being that if a bank was to go down, they might or might not take the nominee holdings down with them.
Are nominee accounts held in trust?
Mar 07, 2004
1 Replies
They are segregated, so you are protected from bankruptcy. In the case of fraud you are covered up to some limit by the statutory compensation scheme, and providers may have indemnity insurance on top of that. If you're with a large organisation you probably don't need to worry, but if it's, say, a fairly small IFA you might like to ask them what protection they have in place.
Join the Discussion
Have something to add? Share your thoughts — no account required.
Didn't find your answer?
Ask the community — no account required