Who has my money?

TrustyOven

ColdIron wrote: »

Unit Trusts and Open Ended Investment Companies use trustees to ring fence your assets so if the fund manager fails to meet its obligations they are protected by the FSCS

Yes, I was vaguely aware of that.
However, does the protection apply to each OEIC or to the trustees?
I think each fund house seems to use one trustee. But there are many OEICs, so I was wondering if the protection is at the trustee level or at the OEICompany level.

Linton

StevieJ wrote: »

So what happens if fraud is involved?

Dont know - as far as I know it has never happened with a mainstream regulated provider. Do you worry when you buy your pills from Boots that maybe it's a giant scam operation and the pills are fake? Perhaps the BMW you recently bought from what you thought was a main dealer is a Chinese copy. At some point paranoia needs to be tempered by reality.

Linton

TrustyOven wrote: »

Yes, I was vaguely aware of that.
However, does the protection apply to each OEIC or to the trustees?
I think each fund house seems to use one trustee. But there are many OEICs, so I was wondering if the protection is at the trustee level or at the OEICompany level.

Protection is at the company level.

Zola.

If you use HL to buy Vanguard LS, is the money not actually with HL in a fund of fund effectively?

e.g. its actually HL who invest in the LS companies and we only buy HL's units of that fund?

Linton

Zola. wrote: »

If you use HL to buy Vanguard LS, is the money not actually with HL in a fund of fund effectively?

e.g. its actually HL who invest in the LS companies and we only buy HL's units of that fund?

HL buy the fund on your behalf. It's your fund, HL are the intermediaries. HL cant invest in thousands of funds on the offchance you might want to buy one.

Glen_Clark

Zippeh wrote: »

They dont seem too bad for my portfolio size according to this:

http://www.telegraph.co.uk/investing/isas/tables-the-cheapest-and-most-expensive-places-to-buy-an-isa/

I use Jarvis (x-o) which is just £5.95 to trade and £50 to close.
One of the ways they cut costs is by not advertising in the Torygraph

Glen_Clark

Your money should be invested in shares (or whatever) and held with a custodian. As I understand it, the only real danger is that somebody has done a Madoff and trousered your money instead of buying the shares.
Madoff got away with it because he was practically a one man operation, keeping everything to himself, doing business on a nod and a wink encouraging his clients to keep quiet with the suggestion they were benefitting from insider trading.
PLC's and Companies like Vanguard are at the other end of the scale. So many people are involved that if someone was trousering your money, someone else would find out about it and expose them before they got away with much.

Dird

Linton wrote: »

Perhaps the BMW you recently bought from what you thought was a main dealer is a Chinese copy. At some point paranoia needs to be tempered by reality.

Unless, of course, you live in China: http://uk.businessinsider.com/inside-fake-chinese-apple-store-shenzen-kunming-2015-9