security of iShares

[bogle]

In a similar vein to the question asked about Quinn Life a few threads earlier I sent the e-mail below to iShares regarding what would happen to any iShares ETFs I own if Barclays went bankrupt. Does anybody know the answer?

Dear iShares,
My name is Bogle and I am an Irish retail investor. I am interested in iShares ETFs. I have one question for you regarding the security of any ETFS I purchase through my broker.

I understand that iShares is part of Barclays Global Investors. Given the current turmoil and uncertainty in the banking sector at the moment, if for instance iShares, Barclays or a company associated with it went bankrupt what would happen to any iShares ETFs I own? Would I incur a loss on part or all of my investment in iShares ETFs?

This is a simple question I hope you can give me a straight forward answer to it.

Thks,
Bogle

 

[bogle]

iShares replied during the week...

Thank you for contacting iShares.

Further to your email, we are pleased to provide you with the following
information as requested:

Please find attached a note which explains the segregation of assets /
liabilities of the iShares funds from the assets / liabilities of the
investment manager, Barclays Global Investors Limited (BGIL), and other
Barclays companies. The iShares fund companies (i.e. iShares plc,
iShares II plc and iShares III plc) are separate legal entities from
BGIL and the Barclays Group. The assets of the iShares fund companies
belong to the respective iShares fund company and such assets are
entrusted to the Custodian of the respective iShares fund company,
currently The Governor and Company of the Bank of Ireland, who has to
ensure safekeeping of such assets. Assets of the iShares fund companies
are not available to discharge liabilities of BGIL or any other member
of the Barclays group.

Please also find a copy of the iShares plc prospectus attached for your
convenience.

Important note: This information is provided for information purposes
only and should not be relied upon in taking an investment decision. It
should not be construed as investment or legal advice and independent
investment and legal advice should be sought before taking any decision
to invest. This information is not intended for public distribution and
onward distribution of this information and the associated materials to
a third party, or reproduction (whether in whole or in part), is
prohibited without the express written permission of BGI. BGI does not
take any responsibility for information and links from third parties.

Should you require any further assistance please do not hesitate to
contact us.

Kind regards,

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