Move to II in this scenario?

NoviceInvestor1

Hello,

I have my ISA and GIA with II already (circa £250k).

My SIPP is with HL, who are extortionate as I prefer funds to ITs/ETFs. SIPP circa £450k.

I was going to move my SIPP to II, but worried about "all eggs in one basket" so contemplated an AJ Bell switch instead. Which would reduce my costs significantly, but would still be a fair whack more than II.

Am I worrying about nothing in terms of concern with having all my £'s with one platform, and in the situation above would you switch the SIPP to II?

Thanks for any thoughts. 

masonic

Do your investments include capital you would need to access at a few months notice?

NoviceInvestor1

masonic said:

Do your investments include capital you would need to access at a few months notice?

No, not at all. I'm 20 years away from being able to access pension, and wouldn't anticipate needing the ISA money any time soon. 

masonic

NoviceInvestor1 said:

masonic said:

Do your investments include capital you would need to access at a few months notice?

No, not at all. I'm 20 years away from being able to access pension, and wouldn't anticipate needing the ISA money any time soon. 

Then having it all with a single provider would not put you in financial hardship if the provider was to become insolvent and you had to wait for the administration process to unfold. That is the main risk to consider.

NoviceInvestor1

Thanks, I think I'd understood that to be the main risk but for some reason keep getting this nagging voice about "what if II goes out of business and takes all your money with it". Despite knowing this is a highly implausible scenario! 

redpete

Having a large amount of money with ii in an ISA and a SIPP doesn't worry me, the convenience and savng in charges outweighs any concern about eggs-in-one-basket.  If someone like ii went bust in a way that slowed access to funds (there are lots of protections on separating client money from 'their' money) would probably reflect far larger problems across the investment industry.

LHW99

IMO the main issue could be an IT failure that takes a week or more to sort.

The way round that is to have an emergency fund you can access reasonably easily with 2-3 months living expenses in. Often a savings account with the bank you use for most of your regular payments would work - likely to be minimal interest, but very quick / instant transfer to current account.

Otherwise I wouldn't (don't) worry about having ISA / GIA / SIPP in one place.

Hoenir

NoviceInvestor1 said:

Thanks, I think I'd understood that to be the main risk but for some reason keep getting this nagging voice about "what if II goes out of business and takes all your money with it". Despite knowing this is a highly implausible scenario! 

Investments are held in nominee form and ringfenced in a seperate legal entity. Totally seperate to the platform's own business affairs. Platform's are highly regulated . 

dharm999

Don’t forget, if you are going to switch that if you start it by 29th Feb, you’ll get cash back from II, £1500 I think, based on your SIPP value.

NoviceInvestor1

Thank you everyone, that's very reassuring and interestingly consistent viewpoints from people. Much obliged! 

Voyager2002

Do check the fees carefully. I have used II for most of my investments but my SIPP is with Fidelity.