Diversifying across multiple platforms for S&S ISAs/SIPPs

LHW99

However as there is no advantage in having your SIPP on the same platform as your ISA

I have an ISA & SIPP with II, so there is no additional platform charge for the ISA

Thrugelmir

pafpcg wrote: »

Easily! And probably more if liquidation became difficult if fraud were suspected or assets were found to be missing.

The SVS platform has been in administration since early August and assets won't be available until at least the 1st quarter of 2020 (probably April), see here: https://forums.moneysavingexpert.com/discussion/6032496/svs-securities-shut-down. In this case, it's a relatively small platform (£300Mill), it entered administration voluntarily under the supervision of the FCA, the administrators say that the assets match the client records, the administrators have retained the IT staff, etc, etc, but it'll still take about eight months (or more) before clients can regain access to their holdings.

SVS through it's discretionary fund management offered model portfolios. The investments contained in these portfolios are the root of the issue. Not as if they were holding quoted stocks that can be liquidated. Best to keep matters in perspective rather than painting the entire UK asset management industry as fraudsters .

Malthusian

I don't see any allegation of fraud in pafpcg's post, they're just noting that the wheels of administrators grind slowly. A wheel always grinds slowly when you are being paid an hourly rate to grind it rather than per sack of flour.

Not all SVS investors had invested in dodgy AIM shares flogged by SVS brokers, but as I understand it that doesn't help if you were a prudent DIY investor who used SVS because they were cheap and resisted the dodgy brokers; you are stuck with them regardless.

The lesson here is not to contract out your portfolio administration to the lowest bidder unless you could do without access to the money for at least a year. Saying "not my problem how they are actually making money" doesn't work forever, because when they go bust or are dinged for flogging AIM share scams or loans to themselves, it becomes your problem.

Thrugelmir

Malthusian wrote: »

Not all SVS investors had invested in dodgy AIM shares flogged by SVS brokers,

Extends far beyond AIM shares.

SVS only had 13,500 active accounts. In the broader scheme of things a very small player in the industry.

darkidoe

Linton wrote: »

As Bonstonerimus says the risk is very small. However as there is no advantage in having your SIPP on the same platform as your ISA you may find it reassuring to put them on a different one. Similarly with his and hers investments. Mrs L and I use 3 platforms. Going further with one person having multiple SIPPs or ISAs on different platforms is likely to add significant hassle to managing ones investments.

That's what I thought. I have SIPP and ISA on different platforms, however I am prioritizing funding the ISA to maximise flexibility of access. It's reassuring to hear platforms risk is less of an issue with mainstream brokers. I suppose part of the anxiety is not having experience of having a large portfolio with a single broker, and as I accumulate into one account, it is starting to feel significant. More experienced investors/savers will probably take it in their stride.

It is probably best to stick to the least number of platforms as possible to keep the process streamlined.

Thanks for all replies!

Lois_and_CK

I do this, but only because I'm a worst-case-scenario type and not because I think there's a big chance of failure (I'm the sort of person who has a fire escape ladder in the bedroom).

I've got one SIPP with AJ Bell invested in VG LS80 and a second SIPP with FundsNetwork invested in HSBC GS Balanced. I also have a S&S ISA with HL split between BlackRock MyMap and L&G GE. My husband does similar.

Most likely I've over-egged my pudding, but if it stops a little nagging worry it's worth it to me.

coyrls

[FONT=&quot]Another advantage of holding your SIPP and ISA on separate platforms is that if one of the platforms changes its fee structure to your disadvantage (as has happened twice to me), you only have the hassle of moving one of your wrappers to another platform. With increasing consolidation of platforms, another possible disadvantage of maintaining investments on multiple platforms is that you could be forced to hold investments on non-mainstream platforms, thus increasing rather than reducing risk.[/FONT]

stphnstevey

If you also have a partners finances to manage and are considering multiple platforms you might want to consider joint accounts to potentially simplify the number of accounts and management, but obviously understand the implications and legal ramifications of this