I understand that investments are covered under the Financial Services Compensation Scheme (FSCS) up to £85,000 per institution. If I have a stocks and shares ISA with a broker (eg: Cavendish Online) and I invest in funds from, say, Legal & General and Vanguard, how am I covered by under the FSCS? Say I had £170,000 - would I be covered if I have £85,000 in Legal & General funds, and £85,000 in Vanguard funds, both held in a Cavendish Online ISA? Or would I only be covered for £85,000 total?

1 Answer 1


I searched for “Cavendish Online FSCS” and found a page of Ts and Cs https://www.cavendishonline.co.uk/faqs/what-happens-if-cavendish-online-or-fundsnetwork-go-out-of-business

This pointed me at a different page hosted on Fidelity: https://www.fidelity.co.uk/how-is-my-money-protected/#239206

which says pretty clearly that you would be protected to £85,000 total and not £85,000 per fund:

Investment firms such as Fidelity are very different from banks because we are required to separate client money and assets from our own resources. We are not permitted to use client money and assets in the course of our own business activities, and your money would be ring-fenced in the unlikely event that we became insolvent. In the case of Fidelity’s default, the Administrator appointed is entitled to claim their costs for distributing client money and assets from the client money pool. Any shortfall in client money and assets will be covered by the FSCS up to a limit of £85,000 per client.

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