SIPP and FCSC

tribetown

Is it correct that like UK bank accounts, SIPP's are protected up to £85,000?

Albermarle

tribetown said:

Is it correct that like UK bank accounts, SIPP's are protected up to £85,000?

Yes  in the case of losses due to fraud, mismanagement, maladministration by the SIPP provider.
Sometimes certain investments held in the SIPP can also be protected up to £85K, if affected by the same issues.

Two things to keep in mind.

Investment losses are not covered

If you stick to mainstream SIPP providers and mainstream regulated funds, then the issue is very very unlikely to ever arise. 

tribetown

I see, thank-you for your reply.

I have often read threads and see that some SIPPs are worth many hundreds of thousands of pounds and wondered if they would be covered for £85k or the total amount.

Marcon

tribetown said:

I see, thank-you for your reply.

I have often read threads and see that some SIPPs are worth many hundreds of thousands of pounds and wondered if they would be covered for £85k or the total amount.

See https://www.fscs.org.uk/check/pension-protection-checker/ for more information.

squirrelpie

tribetown said:

I have often read threads and see that some SIPPs are worth many hundreds of thousands of pounds and wondered if they would be covered for £85k or the total amount.

The FCSC protects a SIPP against things to do with the firm managing it. The investments may be protected separately by different schemes or the same one. As Albemarle hinted, I for one don't lose any sleep over this.

FIREDreamer

squirrelpie said:

tribetown said:

I have often read threads and see that some SIPPs are worth many hundreds of thousands of pounds and wondered if they would be covered for £85k or the total amount.

The FCSC protects a SIPP against things to do with the firm managing it. The investments may be protected separately by different schemes or the same one. As Albemarle hinted, I for one don't lose any sleep over this.

I presume we are referring to FSCS not FCSC. 😂😂😂

tribetown

Marcon said:

tribetown said:

I see, thank-you for your reply.

I have often read threads and see that some SIPPs are worth many hundreds of thousands of pounds and wondered if they would be covered for £85k or the total amount.

See https://www.fscs.org.uk/check/pension-protection-checker/ for more information.

Thanks for the link.

I have a SIPP (no other pension), did not receive any IFA advice and have invested solely in US stocks.

From reading the above link it appears that FCA regulated SIPP provider funds are generally ring-fenced.
Shortfalls may be FSCS protected up to £85k.

dunstonh

tribetown said:

Is it correct that like UK bank accounts, SIPP's are protected up to £85,000?

Yes and no.  Multiple layers exist

If you use assets that have no FSCS protection, then you get no FSCS protection on those.  e.g. ETFs, shares
If you use insured assets (available on some insurance company SIPPs) then you get 100% FSCS protection on many of those.
If you use the funds from the same fund house, then its £85k per fund house.  Not per fund.

Secret2ndAccount

dunstonh said:

tribetown said:

Is it correct that like UK bank accounts, SIPP's are protected up to £85,000?

Yes and no.  Multiple layers exist

If you use assets that have no FSCS protection, then you get no FSCS protection on those.  e.g. ETFs, shares
If you use insured assets (available on some insurance company SIPPs) then you get 100% FSCS protection on many of those.
If you use the funds from the same fund house, then its £85k per fund house.  Not per fund.

I don't quite agree:
I hold a SIPP with Alpha Pensions Ltd, inside which I have 50 shares of BetaCorp Ltd.
If BetaCorp goes to zero, whether it's fraud or bad luck, I get nothing.
If AlphaPensions goes belly up, I still own 50 shares of BetaCorp. If the administrator can only find 40 shares of BetaCorp when he winds up Alpha, then the FSCS steps in and compensates me for the missing 10 shares of Beta.
Do you concur?

dunstonh

Secret2ndAccount said:

dunstonh said:

tribetown said:

Is it correct that like UK bank accounts, SIPP's are protected up to £85,000?

Yes and no.  Multiple layers exist

If you use assets that have no FSCS protection, then you get no FSCS protection on those.  e.g. ETFs, shares
If you use insured assets (available on some insurance company SIPPs) then you get 100% FSCS protection on many of those.
If you use the funds from the same fund house, then its £85k per fund house.  Not per fund.

I don't quite agree:
I hold a SIPP with Alpha Pensions Ltd, inside which I have 50 shares of BetaCorp Ltd.
If BetaCorp goes to zero, whether it's fraud or bad luck, I get nothing.
If AlphaPensions goes belly up, I still own 50 shares of BetaCorp. If the administrator can only find 40 shares of BetaCorp when he winds up Alpha, then the FSCS steps in and compensates me for the missing 10 shares of Beta.
Do you concur?

Yes.  My post was focusing on the areas not already mentioned in the thread.