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    • pip895
    • By pip895 10th Oct 17, 8:01 AM
    • 445Posts
    • 254Thanks
    pip895
    Multiple SIPPs
    • #1
    • 10th Oct 17, 8:01 AM
    Multiple SIPPs 10th Oct 17 at 8:01 AM
    Is there an advantage to having multiple SIPPs? I have my sipp and ISAs on one platform. I am looking at transfering more money in, do I put it in with the rest or does having acces to a separate platform have any advantages (risk reduction etc). I have always assumed that risks relating to the platform are negligable..
Page 1
    • ischofie1
    • By ischofie1 10th Oct 17, 9:32 AM
    • 189 Posts
    • 152 Thanks
    ischofie1
    • #2
    • 10th Oct 17, 9:32 AM
    • #2
    • 10th Oct 17, 9:32 AM
    I can't see any advantage.
    To me you'd just be doubling up on the admin side to look after both of them.
    • tacpot12
    • By tacpot12 10th Oct 17, 9:34 AM
    • 742 Posts
    • 645 Thanks
    tacpot12
    • #3
    • 10th Oct 17, 9:34 AM
    • #3
    • 10th Oct 17, 9:34 AM
    Reducing the risk of a temporary problem at one provider affecting the ability to trade or make withdrawals is the only benefit I can see. The underlying investments are protected to the same extent regardless of the number of SIPP providers used.
    • bigadaj
    • By bigadaj 10th Oct 17, 11:42 AM
    • 10,803 Posts
    • 7,099 Thanks
    bigadaj
    • #4
    • 10th Oct 17, 11:42 AM
    • #4
    • 10th Oct 17, 11:42 AM
    There the fscs limit, unlikely as that is to be called upon.

    I currently have two sipp and two isa accounts, as a function of historical investments and practices, including old employers pensions.

    I don't have a problem with managing these, one of each is flat rate and the other percentage so the smaller sums in the percentage charging providers, and also small,contributions can be cheaper through these.

    I maintain dummy portfolios on trustnet to give an overall view, both for each account and the total, and it works fine for me.
    • pip895
    • By pip895 10th Oct 17, 3:35 PM
    • 445 Posts
    • 254 Thanks
    pip895
    • #5
    • 10th Oct 17, 3:35 PM
    • #5
    • 10th Oct 17, 3:35 PM
    There the fscs limit, unlikely as that is to be called upon.
    Originally posted by bigadaj
    I thought this protected the individual investments - e.g. Vanguard or Invesco etc. Must admit I'm not 100% sure though. Is it individual funds or the group + if you have the same funds in both a SIPP & ISA are they bundled together??

    The "temporary problem" issue is one I have considered but I'm not sure how much of an issue that is in practice.
    • dunstonh
    • By dunstonh 10th Oct 17, 4:05 PM
    • 89,856 Posts
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    dunstonh
    • #6
    • 10th Oct 17, 4:05 PM
    • #6
    • 10th Oct 17, 4:05 PM
    There are two levels that can apply. One to the SIPP provider. One to the fund house.

    If the SIPP provider failed because of fraud and it turned out that they hadnt bought any of your investments, then you would be protected to £50k.

    If the fund failed due to fraud then it is £50k per fund house. (so 1 fund of £50k or 5 funds of £10k each if from the same fund house).
    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 an Independent Financial Adviser local to you.
    • pip895
    • By pip895 10th Oct 17, 4:31 PM
    • 445 Posts
    • 254 Thanks
    pip895
    • #7
    • 10th Oct 17, 4:31 PM
    • #7
    • 10th Oct 17, 4:31 PM
    So there might be a slight advantage to me in splitting the SIPP although there is a relatively low risk I would imagine. The bigger issue is likely to be relating to adding to the complication and the charges some providers levee.

    I actually have an iWeb isa account and am now considering putting the cash in a new SIPP with them rather than adding it to my HL SIPP. The charges seem very low in comparison.
    • Linton
    • By Linton 10th Oct 17, 5:00 PM
    • 8,614 Posts
    • 8,579 Thanks
    Linton
    • #8
    • 10th Oct 17, 5:00 PM
    • #8
    • 10th Oct 17, 5:00 PM
    Having a portfolio spread over multiple platforms can get messy if you want to rebalance your holdings by selling one fund and buying another that happens to be currently held on another platform. You could end up with every platform holding the same funds.
    • coyrls
    • By coyrls 10th Oct 17, 10:34 PM
    • 922 Posts
    • 967 Thanks
    coyrls
    • #9
    • 10th Oct 17, 10:34 PM
    • #9
    • 10th Oct 17, 10:34 PM
    Two providers might be manageable for up to £100,000 but are you really going to find ten providers if/when your pension grows to £500,000?
    • Alexland
    • By Alexland 10th Oct 17, 11:09 PM
    • 731 Posts
    • 461 Thanks
    Alexland
    The risk is low probability high impact.

    What would be the impact to your standard of living if the assets with your largest platform or fund manager were swapped for £50k compensation?

    Although I exceed the FSCS limit on both my pensions I wouldn't have all my eggs in one basket. In the example of a £500k portfolio I would spread evenly across 3 providers (or 4 if there were enough accumulation years ahead to expect growth to £800k).

    Alex
    Last edited by Alexland; 10-10-2017 at 11:13 PM.
    • pip895
    • By pip895 10th Oct 17, 11:12 PM
    • 445 Posts
    • 254 Thanks
    pip895
    Two providers might be manageable for up to £100,000 but are you really going to find ten providers if/when your pension grows to £500,000?
    Originally posted by coyrls
    I wouldn't go over 2 - As I understand it the £50k pertains primarily to individual investments houses rather than the platform although you also have 50k of protection to cover for instance any un-invested funds. There might be some point in not putting all 500k in Vanguard perhaps - not that I see them as a big risk .
    • Audaxer
    • By Audaxer 11th Oct 17, 9:28 AM
    • 632 Posts
    • 279 Thanks
    Audaxer
    I wouldn't go over 2 - As I understand it the £50k pertains primarily to individual investments houses rather than the platform although you also have 50k of protection to cover for instance any un-invested funds. There might be some point in not putting all 500k in Vanguard perhaps - not that I see them as a big risk .
    Originally posted by pip895
    The £50k FSCS limit applies to the platform as well. If there was a major fraud where your funds were lost and not ring-fenced then you could claim under the FSCS up to £50k.
    • ams25
    • By ams25 11th Oct 17, 9:57 AM
    • 100 Posts
    • 85 Thanks
    ams25
    Having a portfolio spread over multiple platforms can get messy if you want to rebalance your holdings by selling one fund and buying another that happens to be currently held on another platform. You could end up with every platform holding the same funds.
    Originally posted by Linton
    +1
    1 SIPP and 3 ISAs (self/wife) already gets messy. If I could practically and safely consolidate onto one platform I would.
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