Splitting S&S ISA across 2 platforms

noclaf

For the current tax year, I have used up my ISA allocation across a LISA and S&SISA. Both are with different providers (AJ Bell and Vanguard respectively).
For next year's allowance (April22 onwards), I am thinking to open an S&SISA with a different platform. The purpose is to spread my investments across more than one S&SISA platform in the event one has a system issue/outage. There is no change to my investing strategy .....so will still be a cheap global equities passive tracker albeit not a Vanguard fund as I already use their funds in my pension and current S&SISA.
For context I use VWRL currently though I have made the schoolboy error of chopping a changing since last year(VLS100....FTSE Global All CAP and then VWRL) either of the last two funds meet my objectives though I may revert back to the global all cap fund to have an acc fund rather than income units. 
So I will be 100% Equities across two platforms in similar-ish funds, 20k per fund etc.
Aside from ensuring my Vanguard S&SISA has enough cash to cover annual platform and fund fees next year does this seem a reasonable approach and is there anything that I haven't considered? I'm curious if anyone went down this route and then found it more of a burden than helping to sleep better at night.

eskbanker

noclaf said:

The purpose is to spread my investments across more than one S&SISA platform in the event one has a system issue/outage.

An unusual rationale for doing this - many choose to use multiple platforms to mitigate risk of platform failure, but system issues and outages would typically only affect more time-critical money than that in investment funds....

Linton

I run Mrs Ls and my investments as a single overall portfolio.  They are therefore split across multiple platforms with both SIPPs and ISAs. That was the reason, not any concern abouit losing access in the event of an outage. The only difficulty is that you cant transfer money between any of the environments.  However in your case since you will presumably be having the same investments in both platforms that wont be a problem.

noclaf

Thanks eskbanker and Linton.
I've just realised that my original post was slightly inaccurate.
I'm seeking both platform and fund provider diversification. Agree that platform outages are more inconvenient for daily transactions e.g: cash payments for rent

My S&SISA's are meant as long term investments but I like the idea of using different fund providers too e.g: using an L&G or HSBC fund alongside my Vanguard fund

Albermarle

Probably if Vanguard / L&G/HSBC  were going bankrupt , you would be heading up to the hills as it probably would mean the world was approaching some kind of Armageddon . In which case your S&S ISA would be the last thing on your mind .
In other words you are worrying unnecessarily .

masonic

noclaf said:

Thanks eskbanker and Linton.
I've just realised that my original post was slightly inaccurate.
I'm seeking both platform and fund provider diversification. Agree that platform outages are more inconvenient for daily transactions e.g: cash payments for rent

My S&SISA's are meant as long term investments but I like the idea of using different fund providers too e.g: using an L&G or HSBC fund alongside my Vanguard fund

Once you have a large enough sum invested, it would probably make sense to abandon the Vanguard platform entirely and consolidate with a flat fee provider. Perhaps when your portfolio gets very large and/or you approach retirement you'd opt to add a second prior to living off your investments.

When considering platform diversification to mitigate outages, you may find providers share the same back-end infrastructure. Most providers outsource this.

noclaf

Albermarle said:

Probably if Vanguard / L&G/HSBC  were going bankrupt , you would be heading up to the hills as it probably would mean the world was approaching some kind of Armageddon . In which case your S&S ISA would be the last thing on your mind .
In other words you are worrying unnecessarily .

I am probably worrying over nothing and as you say if it came to the doomsday scenario..tins of beans might be more useful but it's still a niggle at the back of my mind.

noclaf

masonic said:

noclaf said:

Thanks eskbanker and Linton.
I've just realised that my original post was slightly inaccurate.
I'm seeking both platform and fund provider diversification. Agree that platform outages are more inconvenient for daily transactions e.g: cash payments for rent

My S&SISA's are meant as long term investments but I like the idea of using different fund providers too e.g: using an L&G or HSBC fund alongside my Vanguard fund

Once you have a large enough sum invested, it would probably make sense to abandon the Vanguard platform entirely and consolidate with a flat fee provider. Perhaps when your portfolio gets very large and/or you approach retirement you'd opt to add a second prior to living off your investments.

When considering platform diversification to mitigate outages, you may find providers share the same back-end infrastructure. Most providers outsource this.

One of my pension funds is in Vanguard (£80k) so that's £100k in total including the S&SISA. I appreciate it's small pennies Vs the total funds globally invested into Vanguard funds.
However maybe no harm in using next year's allowance in the Vanguard S&SISA before thinking of addih another platform.