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    • Audaxer
    • By Audaxer 20th Mar 17, 8:53 AM
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    Audaxer
    A FSCS query relating to individual funds
    • #1
    • 20th Mar 17, 8:53 AM
    A FSCS query relating to individual funds 20th Mar 17 at 8:53 AM
    I know that client funds invested are kept separate from the platform provider's funds, so you shouldn't need to worry about the £50k FSCS limit if the platform provider goes out of business. However I was wondering if it is safe to have more than £50k invested in any individual fund like for instance a Vanguard Life Strategy fund?
Page 1
    • Linton
    • By Linton 20th Mar 17, 8:55 AM
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    Linton
    • #2
    • 20th Mar 17, 8:55 AM
    • #2
    • 20th Mar 17, 8:55 AM
    The same principle applies to funds as to platforms. The fund is a separate entity to the company that manages it.
    • dunstonh
    • By dunstonh 20th Mar 17, 11:03 AM
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    dunstonh
    • #3
    • 20th Mar 17, 11:03 AM
    • #3
    • 20th Mar 17, 11:03 AM
    At fund level, it is £50k per fund house. Not per fund.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • Audaxer
    • By Audaxer 20th Mar 17, 11:37 AM
    • 210 Posts
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    Audaxer
    • #4
    • 20th Mar 17, 11:37 AM
    • #4
    • 20th Mar 17, 11:37 AM
    At fund level, it is £50k per fund house. Not per fund.
    Originally posted by dunstonh
    Thanks, is Vanguard a fund house? Does that mean if you have over £50k invested with Vanguard, either in one VLS fund, or in a number Vanguard funds, you would only be protected by FSCS up to £50k?
    • Linton
    • By Linton 20th Mar 17, 11:42 AM
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    Linton
    • #5
    • 20th Mar 17, 11:42 AM
    • #5
    • 20th Mar 17, 11:42 AM
    Thanks, is Vanguard a fund house? Does that mean if you have over £50k invested with Vanguard, either in one VLS fund, or in a number Vanguard funds, you would only be protected by FSCS up to £50k?
    Originally posted by Audaxer
    Yes.......................
    • Audaxer
    • By Audaxer 20th Mar 17, 12:06 PM
    • 210 Posts
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    Audaxer
    • #6
    • 20th Mar 17, 12:06 PM
    • #6
    • 20th Mar 17, 12:06 PM
    Yes.......................
    Originally posted by Linton
    That's a bit of a surprise as it seems from this forum that quite a lot of DIY investors have fairly substantial amounts in VLS funds.
    • jimjames
    • By jimjames 20th Mar 17, 12:11 PM
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    jimjames
    • #7
    • 20th Mar 17, 12:11 PM
    • #7
    • 20th Mar 17, 12:11 PM
    That's a bit of a surprise as it seems from this forum that quite a lot of DIY investors have fairly substantial amounts in VLS funds.
    Originally posted by Audaxer
    I guess it depends how you view that risk. I'd think there are more likely risks to worry about before that being an issue. Vanguard are a huge company so even if there was fraud on one fund it would be very unlikely to affect others and FSCS only would be relevant if the company had failed and had no assets.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • Audaxer
    • By Audaxer 20th Mar 17, 12:46 PM
    • 210 Posts
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    Audaxer
    • #8
    • 20th Mar 17, 12:46 PM
    • #8
    • 20th Mar 17, 12:46 PM
    I guess it depends how you view that risk. I'd think there are more likely risks to worry about before that being an issue. Vanguard are a huge company so even if there was fraud on one fund it would be very unlikely to affect others and FSCS only would be relevant if the company had failed and had no assets.
    Originally posted by jimjames
    Is the risk the same as with the platforms providers, i.e. only if there was some sort of fraud? Am I right in thinking that in the unlikely event that the fund house ceased trading, the actual investments in the funds, i.e. the shares and bonds, would still be fully protected and could not be used to pay fund houses debts?
    • Linton
    • By Linton 20th Mar 17, 1:08 PM
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    Linton
    • #9
    • 20th Mar 17, 1:08 PM
    • #9
    • 20th Mar 17, 1:08 PM
    Is the risk the same as with the platforms providers, i.e. only if there was some sort of fraud? Am I right in thinking that in the unlikely event that the fund house ceased trading, the actual investments in the funds, i.e. the shares and bonds, would still be fully protected and could not be used to pay fund houses debts?
    Originally posted by Audaxer
    Yes, though you should use normal caution. Anything available via one of the standard online brokers should be fine, something sold by a cold caller may not.
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