Legal & General closes Investment Accounts and Stocks & Shares ISAs

Legal & General closed its Investment Accounts and Stocks & Shares ISAs on 4 March 2024, according to the provider's investment support page for customers who opened accounts before 2022¹.

The page states: "These investments were closed on 4 March 2024." It directs holders to the current terms and conditions for details of their investment, and says customers who hold one or more of these investments and have not heard from Legal & General about the closure, or who hold a Junior ISA, should get in touch "at the earliest opportunity to discuss your options"¹.

The same page covers other groups of customers separately. It says matured investments and Cash ISAs "have closed", and that holders who have not heard from the firm about the closure can click through for information about their options and how to get in touch¹. A third group, investments transferred to Fidelity, is treated as complete: "All transfers of investments were completed in December 2021," the page says, adding that Fidelity now administers those accounts and that its contact details are available¹.

The page also carries a risk warning: "Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest." It adds that tax rules may change in the future and that tax advantages depend on individual circumstances¹. On fraud, it says anyone who thinks they have been affected should contact Action Fraud police on 0300 123 2040, or call the police directly on 101¹.

Legal & General has not reported, on the page reviewed, the number of customers affected, the value of the accounts closed, or the reasons for the closure.

Why it matters for households

The closure affects people who hold a Legal & General Investment Account or Stocks & Shares ISA opened before 2022, and it took effect on 4 March 2024¹. Anyone in that group who has not received correspondence about the closure, and any Junior ISA holder, is asked by the provider to make contact to discuss their options¹.

For those customers, the practical questions are where the investments now sit, what the terms and conditions say about the closed accounts, and how any tax advantages that applied inside an ISA wrapper are treated once an account is closed. The provider notes that tax rules may change and that advantages depend on individual circumstances¹. The difference between holding investments in an ISA and a general investment account is set out in our guides, as is where investments can be held.

Customers whose investments moved to Fidelity are in a different position: those transfers finished in December 2021, and Fidelity administers those accounts¹.

What happens next

No deadline beyond the 4 March 2024 closure date has been reported. Legal & General's page asks affected holders, including Junior ISA holders, to get in touch "at the earliest opportunity"¹. Customers who believe they have been affected by fraud are directed to Action Fraud on 0300 123 2040 or the police on 101¹.