FSCS Protection


I see Trading 212 is protected by the FSCS up to 85k, however I notice in section 13.7 of the terms and conditions:

13.7. Your Investments will be registered in the same name as those of other clients (pooled together with other clients’ Investments in an omnibus co-mingled custody account, like with like). This means that Investments will not necessarily be immediately identifiable by way of separate certificates. If we or our third-party nominee were to become insolvent there may be delays in identifying individual assets, and possibly an increased risk of loss if there should be a shortfall because additional time will be needed to identify the assets held for specific clients. In addition, in the event of an unreconciled shortfall caused by the default of a custodian, you may share proportionately in that shortfall.

This stipulates there may be a shortfall in what I presume is the time between the nominee or Trading 212 calculating how much of a share I own and the share price changing (and as a result, me getting less than the share value that I would of had if I’d of sold for myself).

Would I be right in assuming that the FSCS protection applies in a scenario where Trading 212 or the nominee for some reason can not identify my assets and therefore the FSCS would pay the face value?

I presume the FSCS would not cover the shortfall?

I’m quite confused as to what the FSCS protects with regards to my portfolio.

Help appreciated



The FSCS ensures that accounts up to £85k receive back everything, while accounts over this limit will receive the full base £85k plus almost everything left above this.

The mention of a shortfall is accounting for the remote chance that if T212 has to close down, and doesn’t have enough reserve funds left to finance the closure and distribution of client assets, then a small portion of the funds held in trust of their clients will end up funding this process. this will be taken from the collective pot of funds before distributing back to the clients.

On an individual level, accounts under £85k will get back everything with nothing missing. and larger accounts may see a small loss in funds, only if the reserve fund of T212 proves to be insufficient to finance the closure in full.

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@imjacobclark Rest assured that all your investments with us are covered by the FSCS. The FSCS protects you when financial firms fail. What Article 13 is referring is the unusual case of our bankruptcy, our third-party nominee becoming insolvent as well and that in addition to such dark scenario a shortfall due to potential disruption within custody identification systems, which hypothetically may lead to shortfall of your FSCS coverage.

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So As long as your account is below £85,000 you can sleep easy with any FSCS protected broker like Trading 212 knowing you will get all your money or investments back ?

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@Rishi even if you have more in the account you are all but guaranteed to still get practically all of it back. the potential to lose a little bit of your money relies on the extremely remote occurrence of both T212 and the 3rd party bank -Barclays (who hold the funds)- going bankrupt/insolvent at the same time and T212’s reserve funds failing to cover all administration costs associated with identifying who owns what and readying it for transfer.

basically all 3 need to happen for you to lose just a small portion, because your account will be just one in over 200’000 and any possible costs would be shared evenly across all the accounts above the £85k. Not something you realistically need to worry about.


@David Hey David. I might be looking at the wrong thing but why can’t I find Trading212 in this page https://www.fscs.org.uk/check-your-money-is-protected/ ? Is it under a different name? Thanks!

@Fabi0 I think this is because you are searching for the wrong thing.

Trading212 is registered to the FCA while the funds in a segregated account (with barclays) are protected by the FSCS. So the only place you can find with the FSCS is the bank that holds the accounts, not T212.

This Page on Trading212 website gives at the bottom the registration ID for each of the regulators and authorities they are verified with.

@Dao Yeah but I still can’t seem to find the name of the bank holding the accounts (well I can see it when I deposit funds in my account but still nothing on these official pages). Then I guess I could search that in the fscs search.

Does each ISA account and General investment account are protected by £85K limit or is it the collective protection of £85K irrespective of the number of accounts ? Please clarify

Many Thanks

It is the cumulative total across all accounts held with that institution.

this is because the cover is provided per institution not per account. so if you have an account with barclays already and your investment funds are there also, you will only be entitled to a single bailout protection of £85k, not £85k x # of accounts. Additionally, this is a bailout by the FSCS in the sense that the bank holding your funds must lack the capital to protect that minimum balance for you, so it does not activate in the case that the bank manages to protect £86k of your funds or above etc as they have met the requirements of returning you more than the protected bracket.

this is why £85k is the absolute minimum you will receive in the case that both the bank and T212 close down.

I am looking to re-write all of my responses on this topic into a single thread detailing how the FSCS protection works in a simple and clear way, if someone else knowledgeable on the topic does not do so before me, as it would be much more reassuring for everyone if I could direct them to a well structured response telling them why they shouldn’t worry.

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Adding to this, I was trying to see if I could claim using the FSCS website (again as a TEST, was checking if fscs would say something useful… am I doing something wrong ?)

I’ve added the FRM of Trading212 and some test dates of 2019… but I get this from


well for starters, the fscs tells you to enter the name of the company that provided the advice to take up a particular product or service, not the provider.

T212 is the provider and does not offer advice. hence you cannot make such a claim against it. on top of that there has not been an issue with T212 that is valid for applying for compensation as of yet.

Hi, I have read that there is a nuanced difference between money held in cash and as shares. The 85K only covers cash, and shares are covered up to only 50K. Would you confirm please how this would work with your platform.
Also as you are using Barclays and IB, If you have accounts with IB and or Barclays and 212 does the protection cover the different companies separately i.e. 85 x 3 or is it only 1 x