Stocks and shares ISA all with one provider

Matt_22

Do people see it as ok to have all you stocks and shares ISA holdings with one provider. I currently have 200k with iweb. As this has no holding fees. And 130k with AJ bell I am thinking of transferring this to iweb. As AJ bell has a holding fee of 0.25%. is it seen as risky to have large amounts with just one provider? Thanks 

masonic

With AJ Bell you could benefit from their cap on exchange traded investments to reduce your fees.

If you are drawing down from your investments then there could be some benefit from splitting between two providers in case of IT issues with one of them. If you stick with the larger, well known, providers, then there is little risk of sufficient assets disappearing that you'd personally suffer a loss of >£85k.

jimjames

I have my ISA only with iWeb, no worries here about the value being above FSCS limit

Matt_22

Thanks yeah is there a worry about being above the FSCS limit?

DRS1

Matt_22 said:

Thanks yeah is there a worry about being above the FSCS limit?

Why?  It is an S&S ISA not a bank account

masonic

Not if you understand that your investments are ringfenced and held together with typically tens of billions of assets under management. If Halifax Share Dealing Limited were to fail, then those assets would be audited and the FSCS would only be required to meet the cost of the administrators' fees and covering the cost of any missing investments. The losses from missing investments would be shared between all investors with a holding, and for the per investor cost to get close to £85k, there would have to be a massive value missing.

Very different than banks, where your money is used by them and potentially all gone by the time they would go into administration.

GeoffTF

With iWeb, your investments are pooled with the other Halifax Share Dealing Limited (HSDL) brands: Lloyds, Halifax and Bank of Scotland. HSDL is wholly owned by Lloyds Banking Group (LBG). I do not believe you need to worry about HSDL going bust. It would be very damaging for LBG if its customers lost money as a result. Confidence is everything in banking. LBG would almost certainly bail HSDL out. As masonic, has said, even if it did not, the FSCS should pick up the tab for the administrator's fees.

moneysaver9099

I have a cash ISA and a S&S ISA with the same provider. As I'm below the FSCS I don't think it's a problem at all.

wmb194

GeoffTF said:

With iWeb, your investments are pooled with the other Halifax Share Dealing Limited (HSDL) brands: Lloyds, Halifax and Bank of Scotland. HSDL is wholly owned by Lloyds Banking Group (LBG). I do not believe you need to worry about HSDL going bust. It would be very damaging for LBG if its customers lost money as a result. Confidence is everything in banking. LBG would almost certainly bail HSDL out. As masonic, has said, even if it did not, the FSCS should pick up the tab for the administrator's fees.

And if LBG found itself in real trouble the government would prop it up in one way or another.

GeoffTF

wmb194 said:

GeoffTF said:

With iWeb, your investments are pooled with the other Halifax Share Dealing Limited (HSDL) brands: Lloyds, Halifax and Bank of Scotland. HSDL is wholly owned by Lloyds Banking Group (LBG). I do not believe you need to worry about HSDL going bust. It would be very damaging for LBG if its customers lost money as a result. Confidence is everything in banking. LBG would almost certainly bail HSDL out. As masonic, has said, even if it did not, the FSCS should pick up the tab for the administrator's fees.

And if LBG found itself in real trouble the government would prop it up in one way or another.

Even if the government did not prop up LBG (which is very unlikely), it should not matter. HSDL is a separate profitable company and your investments are ring fenced. Multiple very unlikely failures would be needed before any of us loses money.

wmb194

GeoffTF said:

wmb194 said:

GeoffTF said:

With iWeb, your investments are pooled with the other Halifax Share Dealing Limited (HSDL) brands: Lloyds, Halifax and Bank of Scotland. HSDL is wholly owned by Lloyds Banking Group (LBG). I do not believe you need to worry about HSDL going bust. It would be very damaging for LBG if its customers lost money as a result. Confidence is everything in banking. LBG would almost certainly bail HSDL out. As masonic, has said, even if it did not, the FSCS should pick up the tab for the administrator's fees.

And if LBG found itself in real trouble the government would prop it up in one way or another.

Even if the government did not prop up LBG (which is very unlikely), it should not matter. HSDL is a separate profitable company and your investments are ring fenced. Multiple very unlikely failures would be needed before any of us loses money.

Right, but your scenario was LBG propping up HSDL. I'm just going another step up the chain and saying I wouldn't worry about LBG not being in a position to do that. A lot would have to go wrong for HSDL to have any serious issues let alone the assets for which it's the custodian.