Funds Supermarkets

FundSupermarkets are merely a convenient way of diversifying your investments between a number of different fund management groups. They have no actual hold over your investment, they simply are providing an administrative platform.

Because each investment is held with an individual fund manager, there would be no effect on your holdings if something happened to the FundSupermarket. Instead you would just go back to dealing with each fund management group, or re-register your portfolio elsewhere.

Financial Services Compensation Scheme wouldn't come into it, as there would be no financial loss. Granted it would be a real pain in the backside if say FundsNetwork shut down tomorrow and left all those people with ISAs spread far and wide, but that's really the only downside that I can envisage from their collapse.