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Does the FSCS bank guarantee limit of £85,000 apply to cash held within a SIPP?
BobWelham
Posts: 46 Forumite
Suppose that I have a Stocks and Shares SIPP with platform provider A who deposits client monies with banking group B.
I have no exposure to B other than the cash held in my SIPP with A.
My question: Is it is unduly risky to hold more than £85,000 cash within the SIPP?
This is now particularly relevant as the stock market slides and cash seems more attractive than equities for the time being.
As far as I understand, the client is not the direct legal owner of assets within a SIPP but rather that these are held in trust by A with the client as the beneficiary.
If this is correct, does it follow that cash in a SIPP does not count towards the client's FSCS £85,000 guarantee limit with B?
(Again, as far as I understand,such an exemption would be in contrast to the aggregate of any cash held within a client's ISA, LISA, JISA and Dealing Account.)
Please clarify if you can. Thanks.
I have no exposure to B other than the cash held in my SIPP with A.
My question: Is it is unduly risky to hold more than £85,000 cash within the SIPP?
This is now particularly relevant as the stock market slides and cash seems more attractive than equities for the time being.
As far as I understand, the client is not the direct legal owner of assets within a SIPP but rather that these are held in trust by A with the client as the beneficiary.
If this is correct, does it follow that cash in a SIPP does not count towards the client's FSCS £85,000 guarantee limit with B?
(Again, as far as I understand,such an exemption would be in contrast to the aggregate of any cash held within a client's ISA, LISA, JISA and Dealing Account.)
Please clarify if you can. Thanks.
0
Comments
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Some SIPP providers will spread cash deposits over a number of banks giving extra protection, eg see this from AJB: https://www.investcentre.co.uk/sites/default/files/AJBIC_FSCS.pdfSo check with your provider.
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