What happens if Abbey Life goes bust?

jilleh

Hi,
I have a large chunk of my "savings" invested in Abbey Life Managed Funds. I am quite aware that any investment is a risk that it can go up or down and I am willing to weather the storm as I don't need the money in the short term. However as an investment rather than a saving where do I stand if Abbey life or it's parent company (Deuche Bank I think?) goes bust. Do I lose the lot? I haven't managed to get a direct answer from Abbey Life. Do I have any protection?
Any advice gratefully received.

dunstonh

I haven't managed to get a direct answer from Abbey Life.

Its a very simple answer. So i dont know why they couldnt tell you. Although their call centre is run by multi-purpose, low skilled, short term staff.

If the investment is unwrapped or in an ISA. then it falls under investment FSCS protection. If it is wrapped in a life assurance or pension tax wrapper then it falls under insurance FSCS protection.

However, unit linked funds are ringfenced and usually held under a trust or similar arrangement so the FSCS protection would normally tend to apply in cases of fraud as the money you have invested isnt in abbey life but in the investments within the fund. They are not lost because Abbey fails.

Abbey have been closed for business for some time. A lot of their plans are obsolete and expensive. So, it may be worth doing a review against modern alternatives.