Virgin Money investments and pensions business is being sold to Octopus Money

GalacticaActual

I’ve just received a letter today to advise me that Virgin Money is selling their investments and pensions business to Octopus Money (I have a S&S ISA and Pension with Virgin Money).

This will only affect their Stocks and Shares ISAs, Investment Accounts and Pensions.

The sale of the investment business is due to happen early 2026.

Virgin Money’s website detailing more information.

A copy of the letter being circulated to all customers affected.

I believe Octopus Money and Octopus Energy are part of the same group.

This has come about because of the purchase of Virgin Money by Nationwide Building Society, according to the letter mentioned above.

Hattie627

As Oliver Hardie would have said, this looks like another fine mess.

The most recent similar event was the closure of Jarvis Investments' online platform X-O and the transfer of dealing and ISA account holdings to Interactive Investor. It didn't go entirely smoothly. 

I've never heard of Octopus Money. 

GalacticaActual

Hattie627 said:

I've never heard of Octopus Money. 

Yes, same here, never heard of them before.

I had a similar situation with a pension started with Nationwide Building Society in the early 2000s (via Legal & General).

Nationwide then handed it all to L&G who then passed it over to Jessop Fund Managers, then Capita, then Link Fund Solutions and now it’s with Waystone Management.

Although the transfers have gone smoothly, it’s still a worry, especially as I’ve built up quite large pension pots with all my pension providers.

masonic

Octopus have been doing investments longer than they have been doing energy supply. Octopus Money was only launched in 2023, but Octopus Investments and Octopus Ventures have been going a lot longer, the latter since about 2008. Was the first VCT manager to exceed £1bn of assets under management within its funds.

The first question to ask is why you have a S&S ISA and pension with Virgin Money. Aren't there already better options you could move to and not have to find out what this fairly new service is going to be like?

GalacticaActual

I initially set up a stakeholder pension with Virgin Money about 15 years ago with regular monthly investments between £25 and £100 and the odd lump sum along the way. It’s now worth circa £40,000.

The S&S ISA is relatively new so I’m thinking of moving that to another provider soon.

cloud_dog

Octopus Money investments (ISA, pension, etc) appear (?) to function on a 'managed' basis, unless I have misinterpreted their very brief spiel?  1.15% charges?

Albermarle

cloud_dog said:

Octopus Money investments (ISA, pension, etc) appear (?) to function on a 'managed' basis, unless I have misinterpreted their very brief spiel?  1.15% charges?

I briefly looked into them sometime ago, and from what I remember they seemed to be aimed more at the  wealth management area.

GalacticaActual

cloud_dog said:

Octopus Money investments (ISA, pension, etc) appear (?) to function on a 'managed' basis, unless I have misinterpreted their very brief spiel?  1.15% charges?

Virgin Money’s current charges are 0.75% each year, deducted monthly by selling units from my investments.

Lots to take in and think over now.

Thanks for everyone’s input.