Maximum amount to put in any one Investment Platforms

Albermarle

How do I respond to individual replies?

You can use the quote button , or like I have done above just cut and paste . 

Does this, then, mean that if Person A has 3 different Vanguard LifeStrategy funds that none of these 3 funds combined should go above £85,000 or that EACH of these funds can contain up to £85,000?

You are only covered for £85K for Vanguard as a whole. However >

The Fund company is Vanguard and the name of the company is Vanguard Investments UK, Limited.

Vanguard is one of the largest investment companies in the world , looking after Trillions of Dollars of investments .

If the economic situation was so bad that they went bust , it would probably mean there had been some catastrophic event like a thermonuclear world war. In which case the last thing you would be worrying about would be your investments and the chance of any compensation from the government would be zero anyway .

In other words you are worrying unnecessarily.

masonic

dunstonh said:

Makes sense;  if you might want to access an S&S ISA or unwrapped investments for some reason, you're very unlikely to have two platforms have issues at the same time.

Not necessarily.  Over 70% of the platforms are powered by just three software providers.  The front ends are controlled and coded by the platforms but the backend all uses the same software.      One in particular dominates.

FNZ?            

2021

ColdIron said:

This question is asked every few days and the answers are always the same. Search the forum for many threads. You could look at this thread started yesterday and dunstonh's reply

https://forums.moneysavingexpert.com/discussion/comment/78165160/#Comment_78165160

Thanks. I'm new to the forum so will have a look at past threads on this topic.

dunstonh

masonic said:

dunstonh said:

Makes sense;  if you might want to access an S&S ISA or unwrapped investments for some reason, you're very unlikely to have two platforms have issues at the same time.

Not necessarily.  Over 70% of the platforms are powered by just three software providers.  The front ends are controlled and coded by the platforms but the backend all uses the same software.      One in particular dominates.

FNZ?            

They are the largest.   They also power the Vanguard platform (as the op mentioned).

Does this, then, mean that if Person A has 3 different Vanguard LifeStrategy funds that none of these 3 funds combined should go above £85,000 or that EACH of these funds can contain up to £85,000?

It is £85k per fund house.  So, if you went with a whole of market platform and used Vanguard funds to £85k and say HSBC GS funds to £85k and L&GMI to £85k and Liontrust MAP funds to £85k and so on, then you would get multiple lots of FSCS protection at fund level.

2021

dunstonh said:

masonic said:

dunstonh said:

Makes sense;  if you might want to access an S&S ISA or unwrapped investments for some reason, you're very unlikely to have two platforms have issues at the same time.

Not necessarily.  Over 70% of the platforms are powered by just three software providers.  The front ends are controlled and coded by the platforms but the backend all uses the same software.      One in particular dominates.

FNZ?            

They are the largest.   They also power the Vanguard platform (as the op mentioned).

Does this, then, mean that if Person A has 3 different Vanguard LifeStrategy funds that none of these 3 funds combined should go above £85,000 or that EACH of these funds can contain up to £85,000?

It is £85k per fund house.  So, if you went with a whole of market platform and used Vanguard funds to £85k and say HSBC GS funds to £85k and L&GMI to £85k and Liontrust MAP funds to £85k and so on, then you would get multiple lots of FSCS protection at fund level.

Thank-you for your reply. 

So, to clarify, you are saying that, in order to be covered by FSCS protection, I should not have more than £85K in any Vanguard fund, either in any of the 3 different Vanguard LifeStrategy funds nor in all the Vanguard LifeStrategy funds combined?

If Person A already had £85,000 in Vanguard funds, it would not be wise to be looking at another Vanguard fund to add to the Portfolio?

underground99

2021 said:

dunstonh said:

masonic said:

dunstonh said:

Makes sense;  if you might want to access an S&S ISA or unwrapped investments for some reason, you're very unlikely to have two platforms have issues at the same time.

Not necessarily.  Over 70% of the platforms are powered by just three software providers.  The front ends are controlled and coded by the platforms but the backend all uses the same software.      One in particular dominates.

FNZ?            

They are the largest.   They also power the Vanguard platform (as the op mentioned).

Does this, then, mean that if Person A has 3 different Vanguard LifeStrategy funds that none of these 3 funds combined should go above £85,000 or that EACH of these funds can contain up to £85,000?

It is £85k per fund house.  So, if you went with a whole of market platform and used Vanguard funds to £85k and say HSBC GS funds to £85k and L&GMI to £85k and Liontrust MAP funds to £85k and so on, then you would get multiple lots of FSCS protection at fund level.

Thank-you for your reply. 

So, to clarify, you are saying that, in order to be covered by FSCS protection, I should not have more than £85K in any Vanguard fund, either in any of the 3 different Vanguard LifeStrategy funds nor in all the Vanguard LifeStrategy funds combined?

If Person A already had £85,000 in Vanguard funds, it would not be wise to be looking at another Vanguard fund to add to the Portfolio?

If Person A already had £85k in Vanguard funds and feared that Vanguard was going to commit a lot of fraud in the funds it runs, they shouldn't add more money to Vanguard funds, because they wouldn't get more than the £85k per fund house.

Most investors would not think they need to be covered 100% by FSCS protection because if something went wrong with one of their investments they likely wouldn't lose as much as 100% of their value and wouldn't be seeking FSCS compensation for the total value of their investment, only for what they lost due to the fraud or maladministration.

Albermarle

2021 said:

dunstonh said:

masonic said:

dunstonh said:

Makes sense;  if you might want to access an S&S ISA or unwrapped investments for some reason, you're very unlikely to have two platforms have issues at the same time.

Not necessarily.  Over 70% of the platforms are powered by just three software providers.  The front ends are controlled and coded by the platforms but the backend all uses the same software.      One in particular dominates.

FNZ?            

They are the largest.   They also power the Vanguard platform (as the op mentioned).

Does this, then, mean that if Person A has 3 different Vanguard LifeStrategy funds that none of these 3 funds combined should go above £85,000 or that EACH of these funds can contain up to £85,000?

It is £85k per fund house.  So, if you went with a whole of market platform and used Vanguard funds to £85k and say HSBC GS funds to £85k and L&GMI to £85k and Liontrust MAP funds to £85k and so on, then you would get multiple lots of FSCS protection at fund level.

Thank-you for your reply. 

So, to clarify, you are saying that, in order to be covered by FSCS protection, I should not have more than £85K in any Vanguard fund, either in any of the 3 different Vanguard LifeStrategy funds nor in all the Vanguard LifeStrategy funds combined?

If Person A already had £85,000 in Vanguard funds, it would not be wise to be looking at another Vanguard fund to add to the Portfolio?

If Person A already had £85,000 in Vanguard funds, it would not be wise to be looking at another Vanguard fund to add to the Portfolio?
Only if Person A was excessively cautious and prone to worrying about extremely unlikely situations .
As already said if things were so bad that Vanguard went bust, then probably the government would not be in a position to pay out any compensation anyway .

dunstonh

2021 said:

dunstonh said:

masonic said:

dunstonh said:

Makes sense;  if you might want to access an S&S ISA or unwrapped investments for some reason, you're very unlikely to have two platforms have issues at the same time.

Not necessarily.  Over 70% of the platforms are powered by just three software providers.  The front ends are controlled and coded by the platforms but the backend all uses the same software.      One in particular dominates.

FNZ?            

They are the largest.   They also power the Vanguard platform (as the op mentioned).

Does this, then, mean that if Person A has 3 different Vanguard LifeStrategy funds that none of these 3 funds combined should go above £85,000 or that EACH of these funds can contain up to £85,000?

It is £85k per fund house.  So, if you went with a whole of market platform and used Vanguard funds to £85k and say HSBC GS funds to £85k and L&GMI to £85k and Liontrust MAP funds to £85k and so on, then you would get multiple lots of FSCS protection at fund level.

Thank-you for your reply. 

So, to clarify, you are saying that, in order to be covered by FSCS protection, I should not have more than £85K in any Vanguard fund, either in any of the 3 different Vanguard LifeStrategy funds nor in all the Vanguard LifeStrategy funds combined?

If Person A already had £85,000 in Vanguard funds, it would not be wise to be looking at another Vanguard fund to add to the Portfolio?

It is £85k per fund house.  Not per fund.   Any combination of funds from one fund house gets you one lot of £85k. 

As already said if things were so bad that Vanguard went bust, then probably the government would not be in a position to pay out any compensation anyway .

Although the risk of such an event is so minuscule that it's virtually meaningless anyway.   

maxsteam

2021 said:

should investors be investing more than £85,000 in any one investment platform?

The £85k limit is for cash. If you have £80k cash and £1m equities with one broker who goes bust, the FSCS will make sure that you get your £80k cash and the equities will be transferred to you via another platform. It will take time and there will be a period when you are unable to trade but you will be fully covered.

If you are worried about a broker going bust, you should use a different broker. For first-hand information about the experience, there is a thread nearby about SVS Securities.

Albermarle

maxsteam said:

2021 said:

should investors be investing more than £85,000 in any one investment platform?

The £85k limit is for cash. If you have £80k cash and £1m equities with one broker who goes bust, the FSCS will make sure that you get your £80k cash and the equities will be transferred to you via another platform. It will take time and there will be a period when you are unable to trade but you will be fully covered.

If you are worried about a broker going bust, you should use a different broker. For first-hand information about the experience, there is a thread nearby about SVS Securities.

Not quite correct .
The platform itself is covered for £85K in case of losses due to fraud, maladministration etc . However you are right in that in reality if a platform got into trouble , it would most likely get taken over and any actual losses would not be great.
Cash on a platform is covered by the £85K cover of the bank the platform uses. Most use more than one .
However if you have £50K with  bank personally and you have £50K cash with a platform and they happen to deposit it with the same bank , you are not fully covered.