How safe is my money in HL?

fcmisc

If I had £1,000,000 in unit trusts held with Hargreaves Lansdown, how safe would that money be if Hargreaves went bankrupt?

srcandas

fcmisc wrote: »

If I had £1,000,000 in unit trusts held with Hargreaves Lansdown, how safe would that money be if Hargreaves went bankrupt?

I looked at this and was reassured (by several posts here among other sources) all would be well and have thus just completed moving all my SIPP and ISAs to HL. The main reason is the quality of service, the accurate actioning of my instructions, and the ease with which I can actively manage. To be honest if I was a passive investor I'd probably have left it distributed in various places.

However my SIPPS and ISAs represent less than a third of my wealth. Despite all the guarantees I'm still suspicious of financial institutions and wouldn't want all my eggs in one basket. HTH

:beer:

gadgetmind

Here is HL's statement on the matter.

http://www.hl.co.uk/investment-services/vantage-service/how-safe-is-your-investment

Jegersmart

fcmisc wrote: »

If I had £1,000,000 in unit trusts held with Hargreaves Lansdown, how safe would that money be if Hargreaves went bankrupt?

That depends, is your £1M invested with HL or through HL?

srcandas

Jegersmart wrote: »

That depends, is your £1M invested with HL or through HL?

Was the clue not the word 'held'?

But seriously Jeger are you suggesting there is a way your investments could be at risk?

Jegersmart

srcandas wrote: »

Was the clue not the word 'held'?

But seriously Jeger are you suggesting there is a way your investments could be at risk?

Investors are likely to be covered by the provisions of the Financial Services Compensation Scheme (FSCS), if Hargreaves Lansdown ceases trading. It can award up to £50,000 (increased from £48,000 in January 2010) in compensation to any one investor where they decide that an investment business is in default and is unable to satisfy any claims against it. In addition, if one of the banks which we use for depositing cash balances is declared in default, each individual is entitled to up to the equivalent in sterling of 100% of the first €100,000 in total in compensation for losses across all their deposits with that institution. Full details of the FSCS detailing the restrictions and financial limits that apply are available on request from the FSCS. You can contact them on 0207 892 7300 or at www.fscs.org.uk. You can also write to them at FSCS, 7th Floor Lloyds Chambers, Portsoken Street, London E1 8BN.

So my point is that if you have £1M invested WITH HL in their funds then there is risk. If you invest £50k with HL, and then the rest through HL and place funds with Blackrock, JPM or whatever then you are covered up to £50k with each of those as well.....

Jegersmart

I should add I use Fidelity as a platform prvider for various investments, and whilst I hold some Fidelity funds I also hold many others with different providers as well - and I ararely hold more than £50k with one company.

jimjames

If the money is in a fund through the HL Vantage service then the fund is held by the fund house themselves. HL going out of business would have absolutely no effect on the fund itself.

Obviously if you were in the process of buying said fund that may be different but for already invested funds HL has no effect on the security of your investment.

srcandas

jimjames wrote: »

If the money is in a fund through the HL Vantage service then the fund is held by the fund house themselves. HL going out of business would have absolutely no effect on the fund itself.

Obviously if you were in the process of buying said fund that may be different but for already invested funds HL has no effect on the security of your investment.

That was the conclusion of my research in a nutshell and thus the 50000 limit is unlikely to be an issue. Well I hope that is the case.

Of course if I saw HL shares tumbling in value and them offering profit warnings you might find me running for the doors

Jegersmart

Investors are likely to be covered by the provisions of the Financial Services Compensation Scheme (FSCS), if Hargreaves Lansdown ceases trading. It can award up to £50,000 (increased from £48,000 in January 2010) in compensation to any one investor where they decide that an investment business is in default and is unable to satisfy any claims against it. In addition, if one of the banks which we use for depositing cash balances is declared in default, each individual is entitled to up to the equivalent in sterling of 100% of the first €100,000 in total in compensation for losses across all their deposits with that institution. Full details of the FSCS detailing the restrictions and financial limits that apply are available on request from the FSCS. You can contact them on 0207 892 7300 or at www.fscs.org.uk. You can also write to them at FSCS, 7th Floor Lloyds Chambers, Portsoken Street, London E1 8BN.

srcandas

Jegersmart wrote: »

........................... any claims against it........................

and even with a million in funds there is unlikely to be any claim against it except for a few days of inconveniance.

Should I not worry more about Aberdeen for example going bust and legging it with all the assetts of the EM debt or whatever fund ?

ps I'm not worried about Aberdeen I should quickly say