keeping money in WISE

Davpat13

I'm getting some euros soon from a house sale in spain was wondering has anyone kept a fair chunk in a separate wise JAR on STOCKS I'm thinking of £10k and the rest in a savings acount. The interest in wise stocks acount looks really good. Does anyone do this? And how risky is it. Tia

eskbanker

Personally I wouldn't keep any money in Wise because I'd use FSCS-protected institutions instead.

Davpat13

My brothers the same just handy as u can keep money in euros and rates are good

WastedWords

I don't believe there are any onshore EURO accounts paying interest available from FSCS-protected institutions..
 

DavidT67

Davpat13 said:

I'm getting some euros soon from a house sale in spain was wondering has anyone kept a fair chunk in a separate wise JAR on STOCKS I'm thinking of £10k and the rest in a savings acount. The interest in wise stocks acount looks really good. Does anyone do this? And how risky is it. Tia

Your money is invested in Irish domiciled Blackrock instituional funds.  So provided your beneficial interests are correctly recorded within Wise's records you have Irish financial authority protection. 

friolento

DavidT67 said:

Davpat13 said:

I'm getting some euros soon from a house sale in spain was wondering has anyone kept a fair chunk in a separate wise JAR on STOCKS I'm thinking of £10k and the rest in a savings acount. The interest in wise stocks acount looks really good. Does anyone do this? And how risky is it. Tia

Your money is invested in Irish domiciled Blackrock instituional funds.  So provided your beneficial interests are correctly recorded within Wise's records you have Irish financial authority protection. 

Does that protection definitely apply to UK residents?

masonic

DavidT67 said:

Davpat13 said:

I'm getting some euros soon from a house sale in spain was wondering has anyone kept a fair chunk in a separate wise JAR on STOCKS I'm thinking of £10k and the rest in a savings acount. The interest in wise stocks acount looks really good. Does anyone do this? And how risky is it. Tia

Your money is invested in Irish domiciled Blackrock instituional funds.  So provided your beneficial interests are correctly recorded within Wise's records you have Irish financial authority protection. 

Monevator has previously asked Blackrock about protection for its Ireland domiciled ETFs listed on the London Stock Exchange and they replied they were not covered by the Irish scheme. https://monevator.com/investor-compensation-scheme/#comment-612916

Vanguard have the following to say about the protection available to UK investors in its Ireland domiciled mutual funds:

https://www.ie.vanguard/content/dam/intl/europe/documents/ucits/investor-protection-uk-domiciled.pdf

The ICCL themselves have this to say about eligibility:

https://www.investorcompensation.ie/claimant/eligibility.224.html

Blackrock is very unlikely to consider Wise customers as its private clients or even know who they are. Even those who purchased holdings in a personal investment account held by a UK nominee would probably find themselves out of luck.

So I am sceptical that any compensation would be available in the very unlikely event that the fund house failed. In the case that the money never makes it as far as the fund then there would be no compensation, and in the scenario that Wise rather than Blackrock fails, then there would be no compensation, but the possibility of some recovery net of administrator fees if the money made it into the Irish fund.