Is my money really safe with AJ Bell Youinvest?

fryderykchopin

I'm new to UK investment platforms and I would like to open a stocks and shares ISA with AJ Bell Youinvest, but I want to make sure that I give my money to the right company and not to one of those clones out there or an unreliable one.

The platform I'm looking at uses the trading name of AJ Bell Youinvest and their website is https://www.youinvest.co.uk/
They claim to be FCA regulated and FSCS protected, however what I have found from some simple research confuses me.

If I search AJ Bell Youinvest in the FCA register, I get two results:
AJ Bell Securities Limited:   https://register.fca.org.uk/s/firm?id=001b000000MfHEjAAN
AJ Bell Management Limited:   https://register.fca.org.uk/s/firm?id=001b000000MfMB0AAN
None of them shows a link to the AJ Bell Youinvest website, which is what I usually check and gives me some reasurance that I'm looking at the right website.

If I check the FSCS website (https://www.fscs.org.uk/check-your-money-is-protected/) then it shows me the following result for AJ Bell Youinvest (FRN 211468)

None of your money is protected by FSCS

Reason why

AJ Bell Youinvest is a Payment Service Directories. FSCS can't provide protection if a Payment Service Directories fails.

I have emailed them to ask and they have replied with a generic emal saying we are protected, etc. but no clarification about why the FSCS website says otherwise.

Any real clarification? Am I looking at the right website and is this investment platform reliable?

Sorry if the question is silly, I'm experienced with investments but not with UK investment platforms.

masonic

It says on the FSCS website that the search page you are using is only for cash deposits, not investment. Here is the AJ Bell you are looking for, FRN 155593: https://register.fca.org.uk/s/firm?id=001b000000MfHEjAAN

Links to www.ajbellsecurities.co.uk which in turn links to the AJ Bell Youinvest website - just one of its various services. Also states that "Regulated activities that this firm has permissions for may be covered by the Financial Services Compensation Scheme."

It also shows it holds the all important Client Money permission.

The other company, AJ Bell Managment Limited, appears to involved in administration of the AJ Bell SIPPs, according to its accounts at Companies House:

EdGasketTheSecond

Well done for due diligence OP; its more than some do. AJ Bell are listed themselves on the stockmarket and are a relatively big outfit. Your money is as safe with them as any other provider as far as we can foretell. You'll have FSCS protection on cash and any investments will be held by a nominee which in theory means you shouldn't lose them. It would be the same for any legitimate broker platform in the UK.

fryderykchopin

masonic said:

It says on the FSCS website that the search page you are using is only for cash deposits, not investment. Here is the AJ Bell you are looking for, FRN 155593: https://register.fca.org.uk/s/firm?id=001b000000MfHEjAAN

Links to www.ajbellsecurities.co.uk which in turn links to the AJ Bell Youinvest website - just one of its various services. Also states that "Regulated activities that this firm has permissions for may be covered by the Financial Services Compensation Scheme."

It also shows it holds the all important Client Money permission.

The other company, AJ Bell Managment Limited, appears to involved in administration of the AJ Bell SIPPs, according to its accounts at Companies House:

I knew I was missing something, just wanted to have some peace of mind before opening an account there.Thanks a lot for your detailed response!

csgohan4

I have an AJ Bell SIPP which interestingly manages the Iwebb Sipps as well. I have no concerns using AJ bell, bit more expensive, but alot cheaper than HL

[Deleted User]

My understanding..
Cash in accounts on the platform £85k per bank protection
Shares and ETFs - no protection (irrespective of platform)
Funds UK domiciled - £85k protection per fund house
Funds IE domiciled - Euro 20k protection (example - Lindsell Train)

Alexland

AJ Bell is a well run FTSE250 company and one of the few that I would be comfortable exceeding the FSCS limits with. However, as always, just make sure you are dealing with the real company not a clone scam.

BananaRepublic

Deleted_User said:

My understanding..
Cash in accounts on the platform £85k per bank protection
Shares and ETFs - no protection (irrespective of platform)
Funds UK domiciled - £85k protection per fund house
Funds IE domiciled - Euro 20k protection (example - Lindsell Train)

If the platform goes bust, you may lose cash subject to an £85K per platform protection, but the platform does not own your shares and funds, they merely act as the adviser/broker. You will not lose your shares and funds, but you will of course have to transfer them to a new platform.

Of course that does not allow for fraud, whereby someone employed by the platform sells your shares/funds and trousers the money. AJ Bell will have systems in place to limit access to trusted individuals, and to catch unexpected activity. I would have thought that this was very very unlikely.

It also does not allow for the case where criminals hack into the web site and sell your funds. The level of security for a web site such as AJ Bell will be very high. For example, when I log on, I have to enter several passwords. I am a little surprised that they have not implemented security checking by means of a code sent to your phone, or the use of an encryption device as used by the Nationwide Building Society for example. However, it is very unlikely that a criminal could hack in unless you gave them your passwords, which sadly does happen when criminals phone people pretending to be employees of the fund manager. The back end systems will be very secure. How secure? That is something for a cyber security expert to comment on.

Albermarle

If the platform goes bust, you may lose cash subject to an £85K per bank protection

Alternatively if the bank went bust and you already had separately £85K with that bank , then the cash in the platform that was held by that bank will not be covered AFAIU.

agent69

Alexland said:

AJ Bell is a well run FTSE250 company and one of the few that I would be comfortable exceeding the FSCS limits with. However, as always, just make sure you are dealing with the real company not a clone scam.

But how does the average man in the street know?

For example, I am thinking of opening a Vanguard Lifestrategy account. When I google them I get links to vanguard.co.uk and vanguardinvestor.co.uk. How do I know these are legitimate sites and not scams?

eskbanker

agent69 said:

Alexland said:

AJ Bell is a well run FTSE250 company and one of the few that I would be comfortable exceeding the FSCS limits with. However, as always, just make sure you are dealing with the real company not a clone scam.

But how does the average man in the street know?

For example, I am thinking of opening a Vanguard Lifestrategy account. When I google them I get links to vanguard.co.uk and vanguardinvestor.co.uk. How do I know these are legitimate sites and not scams?

You can't actually open "a Vanguard Lifestrategy account" as such - you can open an investment account (GIA, ISA or SIPP) with Vanguard Investor (the second of those websites), within which you can hold a variety of individual investments, including LifeStrategy, or you can open an account elsewhere and buy VLS units there.

In terms of validating sites, you can check the security certificate issued to secure HTTPS traffic to and from your browser - Google Chrome allows this to be viewed by clicking on the padlock immediately to the left of the URL.