IS it wise to put stocks ISA into one account

mr_accountant

on behalf of a relative

currently they have around 140k of s+s isa, 90K in interactive investor and 50K in fidelity, all in OEIC,

they are paying two lot of fees £120 flat per year for ii and 0.35% for FID,

rough calculations are fidelity over 5 years the non compounded fees are £900, (will be more due to compounding and increase in value) if they put it all into ii the fess would be saved, however what if something happens to ii. Is it better to keep 2 platforms and accept the fees

i believe partner has similar sums thats approx 2K over 5 years in platform fees in fidelity.

Also what the situation regarding FSCS, if understand its 85k for total investments in a fund company and not the total on the platform, ie total amount invested in HSBC funds is under 85k then its fully covered? So one could have 500k invested, as long as its spread out between various fund management companies (total each 85k or less) its all covered if the fund or platform went bust

dunstonh

£85k per fund house when using unit trust or OEICs. Zero if using ETFs and ITs. 100% of value with no upper limit if using insured funds (pension funds or life funds).

There is also just £85k at platform level if they fail and have defrauded you. With modern platforms that is unlikely to occur. Especially those using third party software where the software provider and the administrator are two different companies.

FSCS protection on mainstream unit linked contracts isn't really worth the worry. If you go niche/non-mainstream then it is. However, if you are the type of person who worries about FSCS, then you shouldnt be in those things anyway.

Albermarle

There can be good reason for having investments in more than one platform.
For example a platform that is competitive for an ISA , may not be as competitive for a SIPP . They all have slightly different charging structures to appeal to different sorts of customers. Some are better for smaller investors and some have better websites and customer service than others.
In the case you give a £190K ISA invested in OEIC's will be cheaper with II, unless you do a lot of fund switching , as this is free with Fidelity but not with II.