Question:
I hold shares in hoodless in their nominee account (not cert), what would happen if they go bust? I will hold a number of shares (about 10) for 5 years..because it is under nominee account, can they steal the shares if they go bust and would i get full compensation. My portfolio is around £10,000 at mo
Answer:
Assuming they're not being dodgy brothers, you shares should be in a client segregated account and therefore not the actual property of the Brokers. If they do go into liquidation, the shares are still vested in your name - this is a legal requirement under the FSA rules
That said, and same as the previous comment, I'd go about moving them over to another broker pretty quickly - their customer service will go down the toilet fairly quickly if they do go bust!
I would THINK that your property is yours, and they can't use it as their assets.
That said, I'd get my stuff out of there and into a solvent brokerage as soon as possible.
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