Possibility to have an extra insurance

💡 Feature suggestions & ideas
1

Hi, my account is registered in the UK and as such I am covered by the FSCS up to 85k in total (cash + shares).
The EU accounts are covered up to 20k but also have a Lloyds insurance for the sum above that, up to 1 million.

I am wondering if you would consider a Lloyd-style insurance for UK customers, potentially asking them if they want to opt-in for a fixed annual price. The insurance might be covering up to 1 million or the cover amount could even be decided by the individual account holder, year after year.

I would definitely welcome such an option and for the right premium price wouldn’t bother about the cost.
I think the peace of mind it gives versus the annual cost would be a massive advantage.

In case this is not implementable, are there 3rd party insurers for such scenarios that you know of?

Thanks

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2

I agree. I haven’t looked at the EU policy but there was some discussion about it a while ago and I got the impression (I could be wrong) that it wasn’t perhaps as good as you might hope and had aggregate limits so while it might technically give cover up to £1m it might not if there are many claims and there may be exclusions

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3

also if T212 are going to introduce a SIPP I would imagine that financial security will be a major issue and the FSCS protection may not full cover many pensions, Thus this issue may become a more significant issue

4

out of curiosity, are you holding more than 85K cash in your account?

5

Nope, but the relevant number is the sum of cash and securities no?

6

no, securities are not held in T212. They are held by an independent custodian ring-fenced from any assets T212 own. Even in a case of flat out insolvency, creditors cannot access client assets because they are never owned by the broker. (I think the only exceptions to this is “share-lending” in invest accounts, but I have not read the small print on that.)

This is same in any other licensed broker in UK does not matter what type of account ISA or SIPP.

edit:

At Trading 212, we hold client assets in accordance with the FCA’s CASS rules (Chapter 6). We pool clients’ assets together and hold them in segregated accounts with a custodian, completely separate from Trading 212’s own assets

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