I have a simple question that I couldn't find the answer to elsewhere: If you hold a stock ISA and reach the FSA protection limit (£50k/individual) in invested monies, is it then okay to (next tax year) open a new stock ISA with another company, to protect your investment - without actually closing the previous one? I presume you would have to inform the previous company that it is no longer your current ISA, though.

Secondly, is this worth doing? As I understand it, the nominee companies are held separately so are only really susceptible to fraud - they can't really go bust.

1 Answer 1


It is a very good idea to spread your ISAs over more than one stock broker. However now that a lot of stock brokers charge an admin fee it can get expensive if you use too many.

There is no need to tell your last year’s ISA provider that you are using a different one, however you MUST ONLY pay into one ISA provider in each tax year.

  • Could you expand on the "good idea" part? I'm curious as to why. Mar 5, 2014 at 16:54
  • @ChrisW.Rea, to spread the risk if there are issues with bad admin ect stoppin you getting to your money, also what if one of their staff run's of with all of their customer's money.
    – Ian
    Mar 5, 2014 at 17:29
  • Wouldn't customer assets be insured by some scheme required by regulators? I'm thinking of the CIPF we have in Canada, and SIPC in the U.S. Must be a U.K. equivalent? Mar 6, 2014 at 0:04
  • @ChrisW.Rea, yes but they have limis, and it can take a long time to get your money when there is a problem.
    – Ian
    Mar 6, 2014 at 9:53

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