How safe are my investments?

How safe are my assets?

Your stock and cash are safe as there are two layers of protection; segregation of assets and the Financial Services Compensation Scheme (FSCS).

Customer assets are segregated from the firm’s assets and so would be available to be returned to you in the unlikely event that we were to cease trading. In the extremely unlikely event of this segregation failing then you would be able to claim under the FSCS up to a value of £85,000.

Security of customers' assets – segregation

Stock - all customer stock held by us is registered into the name of a nominee company controlled by us. This is a non-trading company and the record of accounts clearly identifies those stocks as being held on behalf of customers.

Cash - all customer money is held in bank accounts specifically designated as holding client money. This clearly distinguishes client money accounts from those accounts maintained by us for our own money.

This means that in the event of our insolvency customer stock and cash would be ring-fenced. The administrative receiver, who would need to be approved by the Financial Conduct Authority, would be prevented from distributing the assets from these accounts to anyone other than the customers to whom it belonged.

Financial Services Compensation Scheme (FSCS)

We are a participant in the Financial Services Compensation Scheme. Customers categorised as a retail client may be able to make a claim on this scheme if we default in our obligations to them. Compensation of up to 100% of the first £85,000 of assets held is available to eligible claimants.

This limit is applied to the aggregated total of any stock or cash held across the following brands which we administer:

• Lloyds Bank Direct Investments
• Halifax Share Dealing
• Bank of Scotland Share Dealing
• IWeb Share Dealing

For example, if you held an account with Lloyds Bank Direct Investments plus an account with Halifax Share Dealing, your holdings in both accounts would be aggregated together for the purposes of eligibility for the FSCS.

If you ask, we will send you a summary of your rights under the Financial Services Compensation Scheme. Further information can also be obtained from http://www.fscs.org.uk/.