Hello All
I’ve read the threads regarding the changes to T&C regarding the lending out of users’ holdings.
Can someone from 212 just confirm that this will not be the case for holdings that are ISA wrapped?
Thanks.
It won’t. T212 have confirmed that this is not allowed.
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Yes, saw that Donald_Duck - thanks.
Signing up for an ISA, the standard 212 T&C have to be accepted, but there’s no mention of any ISA wrapper exclusion to the securities lending in either that document or in the supplementary T&C for the ISA - meaning you’re still effectively agreeing to the lending to shorters by accepting both T&C sets.
You reckon T212 would go against the FCA by lending out securities from your ISA?
Me neither. Sounds like a ticket to massive fines and eventual insolvency.
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The HMRC guidance is unusually explicit https://www.gov.uk/guidance/how-to-manage-an-isa-investment-fund#stock-lending - see the section on stock lending.
We will not include any holdings in an ISA in the stock lending program.
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Got it - thanks Nick. Just wasn’t sure as the T&C don’t indicate this exception.
Then how does ISA account works with a out lending? I mean how do we invest through ISA account if it’s not through lending? Also why can’t trading212 act as a broker without third party involved?
Interesting thread which I was led to after reading section 22 Securities lending of the terms. I know it is an old thread, but I hope better to reply here than start a new one.
I understand that they’d be going against the FCA for ISAs if they lent out the shares.
But I’d appreciate if Trading 212 can confirm they don’t co-mingle shares into single omnibus which is lent out?
3 answers up. Just 3 up from your post.
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Thank you. I did read this answer from what looks like a former employee.
I’ve been burnt by a recent exchange going bankrupt which said in its terms it didn’t co-mingle funds and the CEO claiming he didn’t knowingly do this.
So my question was a probing one which I hoped a current member of the team could confirm how these are separated and that there has been no oversight.
You do realized that the unregulated wild west of crypto has nothing to compare with financial markets?
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Yes. Being regulated doesn’t mean that an oversight could be made or make any question giving a user greater confidence invalid.
@adamsimsy I don’t think 212 have the time to reply to everyone’s question on this, but I think the question comes down to your own due diligence.
Their communication can be patchy at times, partly due to the amount of people asking the same questions several times.
Personally I am comfortable with their operational setup, the actions forced on them / taken re brexit, and the slow, steady stream of improvements. They’re not perfect in communication at times, but overall I like the competitive fee structure and quality of the app. As far as I am aware they have received no findings to note from the regulator which must mean they are fully compliant with, and not limited to CASS client money rules in order to maintain their brokerage licence.
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I think if there’s any specific concerns which you’ve got the right to have, the first thing is to check if it applies to other brokers. If it does, then theres nothing more you can do but to accept the risks or not take the risks at all.
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@Dougal1984I very much appreciate your reply. Good insight for a new member, into likeness of getting a reply from a 212 member and how the repetitiveness can reduce chances.
Also thanks for your thoughts on the platform and operation of it. I have been doing a good amount of reading and great that they listen to the community for ideas and use it to prioritise new features and enhancements, alongside work on platform stability, security and compliance.
@Zrtz I’ve not looked at other firms that offer the same, but I have fully read the terms, done a fair amount of research on the forum, checking on FCA and CASS warnings which Doug said was also clear, also reading into the potential risks of securities lending if they’re not well managed. But I agree, other brokers will likely operate the same way.
All in, from what I’ve researched and read in the community, I’m happy to accept the small concerns I have. These I’m sure only come from the rapid growth of the platform and it is an impossible task to document everything and respond to every question. But who knows, I may be lucky to get this one clarified 
Thanks both.
In the regulated financial institutions, there are compensation schemes, according to the countries where they are under regulation.
We should not confuse the unregulated crypto things with regulated traditional finance.
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