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Standard Life Managed Fund - Clarification of Cover please
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bettina66
Posts: 23 Forumite
I have taken the following details from Martin's piece about "Are your savings safe?"
"It's important to understand, we're talking about ‘saving’ not ‘investing’; if you put money in stocks and shares, funds that invest in them, and pension funds, then you’ve got a “risk based” investment NOT savings, and a different level of protection applies.
If the product provider of an investment goes bust (e.g a bank offering a Shares ISA), you'll get the first £30,000 back, plus 90% of the next £20,000 (a total of £48,000"
PLease can someone clarify if the Standard Life Managed Fund ( in which I have around a significant amout more than £48k) is only covered by the Financial Services Compensation Scheme to a value of £48,000?
That's what it looks like to me.
If this is the case, I think that I need to get some cash out and put it somewhere else, but not with my ISAs in Icesave!!!!!!
Input welcomed...
"It's important to understand, we're talking about ‘saving’ not ‘investing’; if you put money in stocks and shares, funds that invest in them, and pension funds, then you’ve got a “risk based” investment NOT savings, and a different level of protection applies.
If the product provider of an investment goes bust (e.g a bank offering a Shares ISA), you'll get the first £30,000 back, plus 90% of the next £20,000 (a total of £48,000"
PLease can someone clarify if the Standard Life Managed Fund ( in which I have around a significant amout more than £48k) is only covered by the Financial Services Compensation Scheme to a value of £48,000?
That's what it looks like to me.
If this is the case, I think that I need to get some cash out and put it somewhere else, but not with my ISAs in Icesave!!!!!!
Input welcomed...
0
Comments
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That information is incorrect. Have you got a link to it as Martin needs to be aware that he is giving out incorrect information if that is the case.
Unwrapped investments and ISAs are covered under the Investment FSCS protection scheme which is 100% of first 30k and 90% of next 20k. However, life assurance funds and pension funds fall under the insurance protection and that is 100% of the first £2000 and 90% of the rest with no upper limit. SIPPs fall under the investment protection.
However, unit linked funds are ring fenced and held under trust or similar arrangement so FSCS protection is largely irrelevant. FSCS protection mainly covers in cases of fraud rather than company going under as you are not investing or saving in that insurance company or investment company. Your money is in the assets held within the investment fund.
You dont say what tax wrapper you hold the managed fund in but as you can see its not really an issue which.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
The page I got that info from was here:
http://www.moneysavingexpert.com/savings/safe-savings
The bottom paragraph of section A.
I do not know what sort of Tax Wrapper I have in the managed fund.
I am not sure what sort of fund the Standard Life Managed Fund is. I am able to sell units and get a daily rate for sale. It is listed here under Managed Fund:
http://uk.standardlifeinvestments.com/content/products/sl_funds/L/prices.html
Do you think that the protection is:
"the insurance protection and that is 100% of the first £2000 and 90% of the rest with no upper limit" on this sort of fund?
Thanks for your consideration.0 -
The article is correct as the paragraph says:
If the product provider of an investment goes bust (e.g a bank offering a Shares ISA), you'll get the first £30,000 back, plus 90% of the next £20,000 (a total of £48,000); while pension and life assurance funds get the first £2,000 fully covered, plus 90% of everything else in them.
----I do not know what sort of Tax Wrapper I have in the managed fund.
Is it held in an ISA or unit trust (standard life fundzone for example) or is it held in an investment bond (capital investment bond for example)? The former is investment, the latter is insurance.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
I have now looked it up and it is a Capital Investment Bond in a managed fund.
Am I now right in thinking that the FSCS covers"first £2,000 fully covered, plus 90% of everything else in them".
Thanks for your help.0
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