How will Brexit affect Trading 212? Still FCA regulated?

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.

Well yes until 212 migrates all EU customers to an EU entity like other companies have already done (see Revolut etc).

Then, the EU standard protection is up to 20k euros. That’s bad I know but i am sure that 212 will follow that lead. The hard BREXIT is here and there is no other way around.

If you are an UK customer you are fine and covered up to 85k.

Why was this post flagged? It is a legitimate question.

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Any update for this topic? Is there a possibility that we will be forced to close our open position for instruments listed on LSE?

until T212 are told of any changes in regulation, we can’t know of what will happen. so for now everything is business as usual.

Check back beginning of January.

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Hi all,

So please how is it going so far? When will be users notified with the possible options?

Thank you in advance.

Kind regards,

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@Kalach did you not read the post above?

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