Temporary high balance - FSCS

Sunnylifeover50plan

I am in the process of opening a new SIPP before selling down and transferring cash into it from my existing SIPP, prior to reinvesting.

I've read a Telegraph article regarding FSCS temporary high balance protection - though the context in the article was someone selling a house before buying another or perhaps two.

Can anyone conform if I would have similar protections during the period where I sell down, hold a sizeable balance in my SIPP cash account before buying into something else?

Thanks 

MallyGirl

I believe it is specific to house sale

jamesd

Sunnylifeover50plan said:

I am in the process of opening a new SIPP before selling down and transferring cash into it from my existing SIPP, prior to reinvesting.

I've read a Telegraph article regarding FSCS temporary high balance protection  ...
Can anyone conform if I would have similar protections during the period where I sell down, hold a sizeable balance in my SIPP cash account before buying into something else?
 

First, the protection only applies to deposits. A SIPP cash balance is not necessarily a deposit so first you need to check with the SIPP provider to determine if it is.

Many life events can qualify and the FSCS has a list here.

Your circumstances do not appear to qualify even if the SIPP cash is a deposit. You might consider using money market funds.

Malthusian

I agree that this would not qualify for "temporary high balance" protection. Have you looked into moving the assets from one SIPP to the other in-specie, rather than selling and transferring the cash?

Sunnylifeover50plan

Thanks all I will look at whether I can bring the investments over - this is probably the safer way I guess.

RoadToRiches

I was looking at a place to park a sum of money in my SIPP over the FSCS limit, whilst looking for a more permanent home for the funds. Found BlackRock UK Absolute Alpha or L&G Cash Trust - thoughts on this?  I know it's not ideal for longer term just somewhere to park cash for a short period of time, a few months whilst picking a fund.

jamesd

I've used UK Absolute Alpha in the past but it's not a cash equivalent, while L&G Cash Trust is.

A few months when you could use market tracker(s) in the meantime seems like a long time.