Security & Accreditation
Giving you the peace of mind to invest with confidence
How safe are your investments?
The Share Centre Limited is authorised and regulated by the Financial Conduct Authority (FCA) and is a member of the London Stock Exchange. As such, The Share Centre must fulfil all the relevant regulatory requirements of an investment firm and all retail customers receive the maximum regulatory protection under FCA rules.
All investments held on behalf of our customers are registered either in the name of Share Nominees Limited, which is a bare trustee nominee company or, in the case of certain unit trusts and open-ended investment companies, in a Nominee Company owned by Cofunds Limited.
Investment services are required by the regulator to hold capital, so they can cover administration costs if they stop trading. The Share Centre holds more capital than it is required to.
Because customer investments are held in a totally separate company to The Share Centre, in the unlikely event that The Share Centre was placed in administration, your money and investments would be safely ring-fenced and held in trust for you.
What would happen if The Share Centre went bust?
If The Share Centre was placed in administration and the administrator wasn’t able to recover fees from the company’s remaining assets, it’s legally allowed to do so from client assets instead. In this case investors will be able to make a claim under the Financial Services Compensation Scheme (FSCS), which can pay up to £85,000 to each investor.
What would happen if my assets were subject to misappropriation or fraud?
If customer assets were the subject of misappropriation or fraud and The Share Centre was unable to make good any losses, investors will be able to make a claim under the Financial Services Compensation Scheme (FSCS), which can pay up to £85,000 to each investor.
What safeguards do The Share Centre have in place?
- We have robust internal controls, regular reconciliations and external auditors to ensure we fulfil our obligations under the FCA’s Client Money and Asset (CASS) rules
- We look after more than £6.1 billion (as at 31 December 2019) of assets on behalf of our clients
- We place deals only on behalf of our clients, we do not buy and sell investments for our own benefit.
- The business is managed conservatively, with a long-serving and experienced employee base
- The growth of our business has been achieved without borrowing
How safe is your cash?
We are conscious of our position of trust and the responsibilities we have with your money. With this in mind, we regularly review our banking relationships and the distribution of deposits. We only use highly-rated institutions as assessed by respected credit rating agencies or institutions where we can have security in return for the deposit.
Where is your cash held?
Cash deposits for all customer accounts are spread across Lloyds, Royal Bank of Scotland, Barclays, Melton Mowbray Building Society, Santander, Bank of Scotland, Lloyds Bank Corporate Markets, MUFG Bank and Barclays Ireland and the mix of the deposits varies on a daily basis between these institutions. Deposits with Melton Mowbray Building Society are secured with 150% mortgage deed collateral and are held in separate trust status accounts. All customer cash deposits are held in separate accounts from The Share Centre's own accounts.
Are cash deposits covered?
All cash deposits are covered by the Financial Services Compensation Scheme (FSCS) or by a similar European Programme. The FSCS allows for a maximum of £85,000 across all cash the customer holds with each bank to be claimed in the event that any of these banks fails. While our customers’ money is held in a pooled account, the FSCS limits apply to each individual customer. This does mean that any other deposits (directly or indirectly) held by a customer with a failed institution should be taken into account when calculating their compensation relative to the £85,000 limit.
NB: The limit was increased from £75,000 to £85,000 on 30 January 2017.
Where can I find out more information?
For further information please refer to the FSCS website: www.fscs.org.uk
View our staying secure page for further information on potential threats and how to keep your accounts safe from fraud.