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What Would Happen...?
The_Fiddler_2
Posts: 565 Forumite
What would happen if a Fund Supermarket such as H-L went bust? Would you lose all your investments? Would it not be better to buy the same funds from their respective suppliers e.g. Legal and General, Standard Life or whatever so that your "eggs are not all in one basket"?
Noobie (not so 
) trying to make loads a dosh - please bear with all my questions :beer: Thanks
) trying to make loads a dosh - please bear with all my questions :beer: Thanks 0
Comments
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The monies are passed to the fund managers and before that are held in a clients account. So you're as safe as anywhere.0
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But if the fund managers all work for the one establishment and it goes bust...Noobie (not so) trying to make loads a dosh - please bear with all my questions :beer: Thanks 0
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The fund managers are the people who run the fund, nothing to do with H-L.
So no matter where you buy Invesco Perpetual High Income the manager is always Neil Woodford. You can buy this fund through Invesco perpetual direct or through numerous other providers, one of which is H-L.0 -
In addition you have protection under the Financial Services Protection Scheme on Investments for 100% of the first £30,000 and 90% of the next £20,000.
FSCS WEBSITE0 -
Ah right - thanks guys I get it now
Noobie (not so) trying to make loads a dosh - please bear with all my questions :beer: Thanks 0 -
The FSCS site says the £48,000 limit is per person, but is this right? The site also says the £31,700 savings compensation limit is per person, but I thought it was per account (please correct me if I'm wrong).
If it's not per person, is it per fund supermarket (HL), fund company (Invesco Perpetual), or fund (IP High Income)?0 -
"Compensation limits are per person (per firm and type of claim)."steve23144 wrote: »The FSCS site says the £48,000 limit is per person, but is this right? The site also says the £31,700 savings compensation limit is per person, but I thought it was per account (please correct me if I'm wrong).
If it's not per person, is it per fund supermarket (HL), fund company (Invesco Perpetual), or fund (IP High Income)?
http://www.fscs.org.uk/consumer/key_facts/limitations_of_the_scheme/compensation_limits/
Presumably, 'firm' would be the organisation you were claiming against, which would be the ones unable to repay your money (the fund company, unless the supermarket was holding cash funds for you and went bust itself).
The savings limit is per bank, not per account unfortunately.0
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