This scenario Freetrade would still exist (though perhaps wouldnāt survive the fallout of lack of trust in their service). I imagine they would restore from backups and everyone would pull their assets to somewhere more stable.
But I imagine your thinking more along the lines that Freetrade completely collapses and in the process lose all client information. While this is extremely unlikely (like never going to happen), itās essentially up to you to keep records of your own finances. Soā¦ back up your statements.
You wouldnāt, they would, looking at the terms of service Freetrade sell assets and return money on most cases. Fractionals also canāt be transferred, they have to be sold. So I imagine any administrator would likely go down the sell route and return the moneyā¦ perhaps?
This comes down to a decision on your part. If you dont trust the company and itās structure to protect your money sufficiently then you simply shouldnāt have your money with them. Itās that simple. But the coverage would attempt to cover any shortfall and fees ultimately (thereās probably going to be fees)
You can see an example of what happens here https://www.fca.org.uk/news/news-stories/information-customers-beaufort-securities-limited-bsl-and-beaufort-asset-clearing-services-limited
No itās not. The limit is 85k. See the example above
There is a small number of retail clients (fewer than 10) for whom the costs of distribution and any shortfalls will be over the FSCS limit of Ā£50,000, and those clients will have to pay any costs over this limit.
Those clients who are not eligible for FSCS compensation ā or have specifically requested not to receive FSCS compensation ā will need to pay the costs of distribution of the client money and custody assets, and if there are any shortfalls will not receive back all their client money and assets. There are various options for these clients to pay the costs of distribution of custody assets which are set out in the Distribution Plan.
