How will Brexit affect Trading 212? Still FCA regulated?

Sorry what am I missing here . I thought T212 is protected by FSCS UK upto £85000 ? Or is this question more specific to the EU investors post BREXIT ?

You are correct. T212 UK is protecting up to 85k GBP.

I was referring to Ivans part where he states T212 is ready for bad break up between UK& EU. Where they have alternative EU subsidiarie.

I would personally like to know if he is referring to Bulgarian subsidiarie, which coveres up to 20k euro. If this would be solution for EU folks in case of bad break up.

As I believe many here plan long term investing. Having 20k covered doesn’t seem much of protection…

One of bigger reasons moving from Revolut to t212 is having FSCS protection on my investments…

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Ok thanks yup , uncertainties on many aspects. Hopefully T212 can soon clarify them moving forward

[Edited]

Vedran, as you can see your comments are already causing confusion. Let us answer any questions regarding potential Brexit implications. That’s why we have ex-FCA employees in our team.

Firstly, I don’t have any hostile intentions.

I am curious non UK resident. I want to know possible scenarios in case of no deal.

Not sure why you delete my post, instead of just clarifying the subject.

As you written that t212 is prepared for every option. So as non UK resident, how will t212 continue service in case of no deal between UK&EU.

I apologise if I made improper statement, but my intent is only to find out possible outcome for non-uk residents.

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Trading 212 is a UK holding company which owns 2 fully operational and fully licensed brokers.

  1. Trading 212 UK, regulated by the FCA where we are onboarding our UK and European clients.

  2. Trading 212 Bulgaria, regulated by the FSC, where we used to onboard our EU clients for 15 years before switching to the UK entity.

Even though Brexit is now official, nothing changes at the moment from a regulatory perspective for our clients or for us. Any new arrangements between the UK and Europe have yet to discussed, approved, and then followed by a transition period. This could take a year(s).

There are two scenarios after that:

  1. License passporting remains and nothing changes. Then we’ll continue to onboard our EU clients to the UK entity.

  2. No deal on passporting. Then the immediate solution could be to switch the EU clients to our Bulgarian broker. But there are also other possibilities. By that time we might already have a license in another EU country.

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Thanks Ivan for making it clear! So far sounds good to me. You are right this is a sensitive topic, I expect any important updates from now forward to come via official channels e.g. email, announcements etc.

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Coming back to this thread with an update…

According to the article https://ibkr.info/node/3515, Interactive Brokers UK will no longer offer FCA protection starting 2021. All their accounts are in process to be migrated to their new Hungary / Ireland / Luxembourg entities, resulting in compensation changing from £85k to €20k:

Under the EU Brokers IBLUX, IBIE and IBCE eligible claimants may be entitled to claim compensation up to a maximum of EUR 20,000.

It is my understanding Interactive Brokers UK is the custodian of Trading 212. Does this mean we are impacted in the same manner and will no longer be protected by the FCA up to £85k?

Thanks!

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I am also very interested in this. With this move from IB, it looks like things are actually starting to move in a way that will now impact Trading 212 and its customers.

Personally, I would not only like to know if we will no longer be protected by the FCA up to £85k, but I also would like to know what Trading 212 is planning for the future, regarding IB and Brexit in general. @Ivan

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@tsukeyomi @AlinMC

FSCS covers the regulated firm, in this case - Trading 212. It doesn’t matter where Trading 212 is holding the shares/funds - we are part of the regulatory compensation scheme and our clients are covered by it.

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Hi David, thanks for answering. Can you please share any official document or claim that can back up your statement?

I have found this here, https://www.bankofengland.co.uk/prudential-regulation/authorisations/financial-services-compensation-scheme , from the Bank of England:

Depositor Protection

Depositors with eligible deposits held by UK establishments of firms with Part 4A permission to accept deposits (or deemed Part 4A permission) would be protected by the FSCS.

Generally, deposits held outside of UK establishments would not be protected by the FSCS.

Deposits held by UK firms’ branches in the EEA would not be protected by the FSCS, but may be protected by the relevant EEA State’s deposit guarantee scheme depending upon the depositor protection regime in that EEA State.

I would assume the same applies to Trading 212.

@tsukeyomi

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Since the UK is exiting the EU I have seen that other UK trading account who do not have a license to operate under EU law, have asked their clients to sell their positions before Jan 2021. How is T212 dealing with this matter, or does T212 have an entity in EU.

Thank you for the clarification.

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Have a look here :wink:

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Any news about this ?

I’m interested too in getting an official statement / update from TR212.

Thank you !

Despite it being under 2 months until the end of the transition deal, the UK and EU still haven’t agreed any form of trade deal.

I’d hope that T212 has done scenario planning for the likely outcomes (deal or no deal!). It might help stop all these questions if they made a clear statement regarding the two main options (though to be fair they’ve already outlined the two possibilities ie UK allowed to passport then investors stay under UK subsidiary and FCA/FSCS or no deal and non-Uk investors moved to EU based subsidiary (BG).

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About “T212 UK is protecting up to 85k GBP”. Does it apply to both UK and EU customers?

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For now it does. But Brexit might change that. We’ll see.