Regulation and protection
Is my money protected in a halal ISA?
Explains FCA regulation, FSCS protection basics and what protections apply to ISAs and Islamic products.
The short answer
Protection depends on the product and provider. FCA regulation covers conduct and some safeguards. The Financial Services Compensation Scheme (FSCS) may provide compensation in certain circumstances but eligibility and limits apply. FSCS does not protect against investment losses.
Regulation versus Shariah governance
FCA regulation is about legal consumer protection and firm authorisation. Shariah governance is a separate religious oversight. Check both when assessing a halal ISA.
FSCS basics
FSCS may cover certain deposits or investments if the provider fails and you meet eligibility conditions. There are limits and eligibility rules that change; check FSCS’s official site for the current position rather than relying on a fixed figure.
What this means in practice
- 1Check the provider’s FCA authorisation using the FCA Firm Checker.
- 2Confirm product-specific FSCS eligibility and any current limits on FSCS’s website.
- 3Distinguish between protection from provider failure and protection from market losses.