I can understand T212 keeping it registered in their name to facilitate shorting trades I guess.
I’m just unclear as to the legal liability bit. So are T212 liable for my cash, or, for the shares appreciation and dividends.
If T212 went bang tomorrow, my shares are gone too presumably, as they were never mine to begin with.?
This explains why it’s only the 85k cash balances in a segregated account are covered by the fca…as T212 only is liable for cash balances of clients and not the physical shares.
Am I right or wrong…and open to correction.
I’m just concerned with building a portfolio over 10-20 years when in effect, I’ve no underlying right on a financial asset, purely a claim on a derived cash balance that happens to track a stock.
Am I misunderstanding here?
Is this industry standard?
Pardon my ignorance.