£85k FSCS compensation

WongstaMK

Hello 

I'm just wondering how much the £85k FSCS compensation affects everyone's investment portfolio's? The prudent thing to do is to make sure no single investment with a particular financial body exceeds £85k......? But I guess people with sizable portfolio's this represents a bit of an overhead and some keen book keeping to manage their investments. 

I have a HL SIPP £183k, but am wondering if I should break it up. Do I split it up into say three £60k chunks to three different SIPP's (allowing for growth). Is it worth the faff? 

What do you people do - are people in general worried about having all their investments in one basket? 

jimjames

No, not worried and hold with single provider but in a few different funds.

Linton

If you are using mainstream investments on a mainstream platform it is difficult to see what circumstances could give rise to an FSCS claim. Unlike a bank deposit your investments are ring-fenced and cannot be accessed by the platform for their own purpose. If a platform goes bust it is likely your account would be taken over by another platform since you as a customer are a valuable asset.

InvesterJones

 I would certainly keep any uninvested cash in the platforms below £85k

dunstonh

I'm just wondering how much the £85k FSCS compensation affects everyone's investment portfolio's?

For me, it doesn't.   But then, I don't go far off the beaten track and stick to options where it wouldn't be necessary.

I have a HL SIPP £183k, but am wondering if I should break it up. Do I split it up into say three £60k chunks to three different SIPP's (allowing for growth). Is it worth the faff? 

Are you using assets where FSCS protection would be prudent?

Albermarle

WongstaMK said:

Hello 

I'm just wondering how much the £85k FSCS compensation affects everyone's investment portfolio's? The prudent thing to do is to make sure no single investment with a particular financial body exceeds £85k......? But I guess people with sizable portfolio's this represents a bit of an overhead and some keen book keeping to manage their investments. 

I have a HL SIPP £183k, but am wondering if I should break it up. Do I split it up into say three £60k chunks to three different SIPP's (allowing for growth). Is it worth the faff? 

What do you people do - are people in general worried about having all their investments in one basket? 

This question is asked on here on a very regular basis.

Most larger investors ( lets say with a Million quid in pensions and S&S ISA's ) would probably use two platforms, just in case there was a major IT meltdown at one. Also although the risks are negligible, there is probably a feeling still of not having your all eggs in basket.
Some will just have one and some will have more than two, but not multiple ones with £80K in each.

Albermarle

InvesterJones said:

 I would certainly keep any uninvested cash in the platforms below £85k

It is a good comment, but the situation regarding holding uninvested cash on an investment/pension platform is a bit more complicated.

Firstly they are not all working in the same way.
AFAIK most use more than one bank to hold the cash.
If a bank went bust, the £85K compensation limit applies to money in the bank you have via the platform + any money you have with that bank outside the platform. 

gm0

https://forums.moneysavingexpert.com/discussion/comment/80885761#Comment_80885761