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.