Risk with having high portfolio % with one provider?

Albermarle

If it is a pension you are talking about then for 100% security on more than £85K , you can have your pension with insured funds with the likes of Aviva, Scottish Widows, Standard Life . On the downside your choice will be more limited and in most cases the fees might be a bit higher .

noclaf

Does anyone actively choose not to use ETF's due to the lack of FSCS protection?

pip895

noclaf said:

Does anyone actively choose not to use ETF's due to the lack of FSCS protection?

I consider it unimportant - the advantages of lower platform fee and knowing the price when you buy or sell far exceed any theoretical disadvantage.

dunstonh

noclaf said:

Does anyone actively choose not to use ETF's due to the lack of FSCS protection?

Wouldnt worry me.  However, the individual should understand there is no FSCS protection and know the risks with ETFs compared with UT/OEICs.  If they do, then I cant see a problem.

Linton

noclaf said:

Does anyone actively choose not to use ETF's due to the lack of FSCS protection?

What particular risk are you wanting FSCS protection for?  Is it a real risk?  Would the FSCS actually protect you against it?

Thrugelmir

noclaf said:

Does anyone actively choose not to use ETF's due to the lack of FSCS protection?

I'd be more concerned with a wide spread in both illiquid and volatile trading conditions.  

noclaf

Sorry, don't wish to hijack the thread or take it on a tangent from the OP's question but thanks for the replies!
I fully accept there is no protection of an investment from market risk for example another Covid 19-esq pandemic or some combination of events which resulted in the market taking a huge nosedive along with the value of my investments.
But the lack of FSCS protection might worry me if I end up with a reasonably large sum in a ETF and god forbid some rogue individuals stealing/fraudulently selling investments and doing a runner. I work in financial services, AML and fraud/conduct controls have come a long way over the years but Ive always felt that the Asset Managers have flown under the radar and didn't receive the brunt of regulatory action and fines compared to the big banks. Overthinking it much...yes I probably am.

noclaf

Thrugelmir said:

noclaf said:

Does anyone actively choose not to use ETF's due to the lack of FSCS protection?

I'd be more concerned with a wide spread in both illiquid and volatile trading conditions.  

Is this referring to a lack of liquidity in the said fund or ETF e.g: market nose-dives and you want to sell X amount but the sell order becomes delayed due to lack of liquidity and by the time your broker has processed the sell, you took more of a hit than you would of liked?

Shocking_Blue

Thanks all.
I think I will avoid the Vanguard ETF in favour of the HSBC FTSE All-World Index Fund.
The question of having everything on one platform never really crossed my mind as a potential issue. Was a bit concerned when this was raised as I have just asked for a transfer of all funds on other platforms to iWeb (to avoid fees), which means I'll have all my portfolio (about £125K* in S&S ISA's and individual co shares (pension elsewhere)) on iWeb. From what has been said, though, this needn't be something that should concern me, as even if in the unlikely event Halifax/Lloyds folded in some way and iWeb became inactive, it would just be an inconvenience to wait until some administrator could get some sort of platform back up, and any £ would be safe in whatever funds/shares they were in (if I'm reading that right).
Many thanks.
*I know some have noted no problem in holding over £100K on one platform, but this will be not only that figure, but the entire portfolio - not sure if that makes any difference to the above reading.
Thanks

dunstonh

I fully accept there is no protection of an investment from market risk for example another Covid 19-esq pandemic or some combination of events which resulted in the market taking a huge nosedive along with the value of my investments.

It should be noted that covid19 didn't really have a large drop.   It was a sharp drop but only the 3rd largest peak to trough in the last 20 years.    

But the lack of FSCS protection might worry me if I end up with a reasonably large sum in a ETF and god forbid some rogue individuals stealing/fraudulently selling investments and doing a runner.

Dont use ETFs then.  However, you seem more worried about platform activity.  An unregulated investment on a regulated platform would see FSCS protection if the platform was at fault.