A court order has been made to place Southsea Mortgage and Investment Company, a cash ISA provider, into the Bank Insolvency Procedure on 16 June 2011 and appoint BDO as the insolvency practitioner.
The Financial Services Compensation Scheme (FSCS) has been triggered and eligible deposits up to the limit of £85,000 have been safeguarded.
These questions and answers should help with any queries from ISA investors.
The funds in your ISA account are protected, up to £85,000, by the FSCS.
In relation to the ISA tax status, you will shortly be sent a reinvestment certificate by BDO LLP, the bank liquidator, showing the balance you had saved in your ISA on 16 June. You can use this certificate to open a new ISA (either cash or stocks and shares) with another ISA manager of your choice.
No – you will be sent one automatically.
Yes – if you want to add money to an existing ISA account you can as long as your manager will accept the certificate.
It is up to each manager whether or not they will accept the reinvestment certificates.
No. You can open either another cash ISA or a stocks and shares ISA as it is possible to transfer the savings in a cash ISA to a stocks and shares ISA.
You will be able to reinvest up to the balance shown on the certificate in a single subscription to the new manager. The new manager will retain your certificate so it cannot be used again.
HM Revenue & Customs (HMRC) need to check the amounts paid back into the ISA and piecemeal subscriptions would make this impossible.
It will be sent shortly by BDO LLP the bank liquidator.
No. If you have other funds available you can use the certificate as soon as you receive it, but remember you can only use the certificate once so if you don’t reinvest the full amount shown on the certificate you will not be able to make a later subscription for the balance.
HMRC understand that no depositors with ISA accounts have aggregated balances above £85,000.
However, the FSCS compensation limit does not restrict the amount you can reinvest. You can reinvest up to the amount shown on the certificate. If you receive less than this amount from the FSCS you can top the sum up from your other savings and make a single reinvestment with another manager.
Yes – you can add to your ISA savings in the normal way subject to the annual subscription limits.
Yes. You must use the certificate by 5 April 2012 to reinvest your savings in another ISA.
