Question about government guarantee and investments

sgjeffery

I know that the government will guarantee 50,000 per person per institution in the case of cash savings, however, does this also apply to unit trusts or Life assurance bonds? I have some money invested with Axa Sun Life (deferred distribution bonds) . If Axa go bust will I be protected? I also have unit trusts with Jupiter. Will they be protected if Jupiter go bust?

Thanks in advance

Reaper

The answer is probably. The rules for investments are more complicated. You can read a brief summary here. Personally I would ask the companies themselves about your particular product to be sure.

Aegis

As a general rule, any assets that you hold with an investment company are usually ring-fenced from the company assets, and therefore are not included as something that can be taken if the company goes bust. Exactly how this would work in practice, I don't know, but in theory your assets should not not be in danger if the company holding them goes bust.

dunstonh

I know that the government will guarantee 50,000 per person per institution in the case of cash savings,

The Govt dont provide the guarantee. The Govt underwrite the compensation scheme with loans if required but it is supplied and funded by financial services companies.

however, does this also apply to unit trusts or Life assurance bonds?

Unit trusts are covered under the investment FSCS protection and life assurance bonds are protected under insurance FSCS protection.

I have some money invested with Axa Sun Life (deferred distribution bonds) . If Axa go bust will I be protected?

100% of first £2000 and 90% of the rest with no upper limit.

I also have unit trusts with Jupiter. Will they be protected if Jupiter go bust?

100% of first £30,000 and 90% of next £20,000.

However, as Aegis says, unit linked investments are usually ringfenced from the company assets. Your money isnt in the company you hold the investment with but in the assets of the fund. So, the FSCS protection on unit linked investments is largely there to cover fraud more than solvency.