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14th
Nov 2020
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Is My Stocks and Shares ISA Protected?

Is My Stocks and Shares ISA Protected?

The past week has seen the stock market in the UK have considerable fluctuations – which has led to many asking the question: is my investment ISA protected? We’ve got the answer. 

Is my Investment ISA Protected?

With Stocks taking quite a downward turn in the past weeks due to the outbreak of Coronavirus, many investors are asking the question: is my stocks and shares ISA protected?

  • The short answer: no....and yes.

What’s the risk?

Your investments will not be protected from fluctuations in the stock market.

That is the nature of risk with investing – you have the possibility of getting less money back than you put in due to market peaks and troughs.

So, you could in theory lose money as a result of large market fluctuations - thus why the sharp market drop following the Coronavirus impact was quite to concerning for investors. 

But, fluctuations are not uncommon in the market and the wisest thing you can do is to weather the storm - the dip will highly likely return to an upward trajectory and level out once again. We've recently written a blog about what to do with your Stocks and Shares ISA in the face of the recent market disruption, so if you want to read more that's a great place to start. 

Are there protections?

There are protections in certain situations – for example, in the extremely unfortunate event that your fund manager goes bust then you are protected by certain schemes. 

What you need to know is: 

  • If you end up in a sticky situation with your fund manager, then your money is protected up to an extent. 
  • Most ISAs, including Stocks and Shares ISAs are protected by the Financial Conduct Authority (FCA) which is an independent regulatory body. They regulate the conduct for most of the UK's financial bodies. 
  • If your fund manager runs into issues and is unable to repay your money, then you could be compensated by the Financial Services Compensation Scheme (FSCS) for amounts up to £85,000 - per person, per institution. This is the UK's statutory compensation scheme. 
  • This will protect the investments of the vast majority of people - but if you have a considerably large amount of investments (i.e. greater than £85,000) you should ensure your investments are spread across multiple different platforms to efficiently protect your money. 

Read more about Investment ISA Rates. 

Selected ISAs

Stocks & Shares ISAs

from Legal & General

Allows ISA Transfers
Regular Savings
  • Fund Choice: Choose from 50+ L&G funds including low cost index tracker funds, multi asset, fixed income, property & equity funds. Alternatively let L&G managed your funds for you based on your risk profile.
  • Invest From: £20 per month or £100 single

Why we like it: Legal & General can help you save for a brighter future with their stocks and shares ISA. Choose from over 50 funds, including ready-made investment options that spread your money across different investments for you and sustainable funds that seek to make a positive difference without compromising financial returns. Please remember with investments, your capital is at risk, the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.

Important: Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.

Investment Fund Supermarket ISAs

Stocks & Shares ISA

from Fidelity

Allows ISA Transfers
  • Protection Scheme: FSCS
  • Fund Choice: Select from over 4,000 funds. Large selection of UK shares. Investment trusts, ETFs and investment portfolios put together by experts.
  • Invest From: £25 per month or lump sum from £1,000

Why we like it: Investment choice from over 100 fund providers, giving you access to 4,000+ funds. Great service – from investment guidance on website through to UK-based phones team. PathFinder, Select 50, Investment Finder - investing tools for beginners to advanced investors. 24/7 access via online Account Management system.

Important: The value of your investments can rise as well as fall. You may get back less than you invested. If you’re unsure, we recommend you ask for independent advice.

Stocks & Shares ISA

from Hargreaves Lansdown

Allows ISA Transfers
  • Protection Scheme: FSCS
  • Fund Choice: 2,500+ Funds
  • Invest From: £25 pm

Why we like it: Choose your own funds or alternatively a ready made portfolio. Market-beating savings and discounts of up to 5.5%. No charge to buy and sell funds. Low, tiered annual charges for holding funds, with a maximum of just 0.45% per annum. Free fund updates and analysis from experienced research team. Invest with a financially secure, FTSE 100 company.

Important: The value of your investments can rise as well as fall. You may get back less than you invested. If you’re unsure, we recommend you ask for independent advice.

Important Risk Information:

The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website aims to provide information to help you make your own informed decisions. It does not provide personal advice based on your circumstances. If you are unsure of how suitable an investment is for you, please seek personal advice.

High Income ISAs

High income ISA ideas:

ISAs Products

Cash ISAs

Fixed Rate & Instant Access ISAs:

Cash ISAs: 

Stocks & Shares ISAs

Types of Stocks and Shares ISA include: 

Stocks and Shares ISAs

Latest News

Our Top Picks for Technology Stocks and Shares ISAs

19th January 2021

The tech industry has been booming for the past fifteen years; and it seems to be a rollercoaster that only goes up. The tech bubble has yet to burst, with companies coming out with more and more technological developments and consumer demand is certainly not slowing down. So, for the tech-savvy investor who wants to put their pennies behind this strong growing industry, we’ve put together our top three picks for Technology Stocks and Shares ISAs. 

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