How safe are my investments?

JustAnotherMrAverage

I have a number of securities held on my behalf and managed by Lloyds TSB Private Banking. Some in what they call a Managed Portfolio and the rest in a Stocks and Shares ISA. Were Lloyds TSB to get into difficulties and let's suppose collapsed how safe would my investments be? I have asked this question of them and have been told my investments are ring fenced and except in the case of a major fraud are safe; however, I should like to hear the comment and opinion of independent sources. Thanks.

Meeper

How much are we talking about, and what is the nature of the vehicles in which they are invested?

dunstonh

Lloyds Private banking is an expensive discretionary investment management service that uses investments based on their assessment of your risk profile.

Were Lloyds TSB to get into difficulties and let's suppose collapsed how safe would my investments be?

you are not invested in LloydsTSB. You are invested wherever the investments are.

I have asked this question of them and have been told my investments are ring fenced and except in the case of a major fraud are safe;

As they use a mixture of direct assets and investment funds (often far too many Scottish Widows) then the answer is largely correct.

however, I should like to hear the comment and opinion of independent sources.

So you should. Indeed, it begs the question, why are you not using an independent? IFAs love coming across LPB customers as the costs and service can easily be beaten.

bobbyj_2

"were Lloyds to get into difficulties"


they already are, expect them to be nationalised by end of january.

JustAnotherMrAverage

Meeper wrote: »

How much are we talking about, and what is the nature of the vehicles in which they are invested?

Based on Friday's valuation about £291k

JustAnotherMrAverage

Meeper wrote: »

How much are we talking about, and what is the nature of the vehicles in which they are invested?

Based on Friday's valuation about £291k.

Fixed Interest - UK Govt and Corporate Bonds
UK Unit Trusts / OEIC's
Overseas Equities
Property Funds
Cash Benchmarked
Mixed Asset Funds

JustAnotherMrAverage

dunstonh wrote: »

Lloyds Private banking is an expensive discretionary investment management service that uses investments based on their assessment of your risk profile.



you are not invested in LloydsTSB. You are invested wherever the investments are.



As they use a mixture of direct assets and investment funds (often far too many Scottish Widows) then the answer is largely correct.


So you should. Indeed, it begs the question, why are you not using an independent? IFAs love coming across LPB customers as the costs and service can easily be beaten.

Thank you for these carefully chosen comments. That about SWIP has particular resonance and something about which I have been uneasy. I posted this on the forum to learn from others more experienced than myself and to this end it has had some success. Can I trouble you to elaborate on your "As they use a mixture of direct assets and investment funds... then the answer is largely correct." Thanks.

dunstonh

Can I trouble you to elaborate on your "As they use a mixture of direct assets and investment funds... then the answer is largely correct." Thanks.

With investments of the type being used, you are not investing in Lloyds. You are investing in shares, gilts, unit trusts, investment trusts, ETFs etc. These will be held under a nominee or trustee arrangement and ringfenced.

Its not like the old days when you invested in the company you placed the investments in (or using more sophisticated investments where that may be the case).

JustAnotherMrAverage

Thanks dunstonh, it's reassuring that this is in line with what LTSB told me. The point about an independent IFA is well taken and understood.

Meeper

Agreed with D. Absolutely worth getting an IFA to look at this for you, as you will be able to make significant savings.