Aviva SIPP or Pensionbee

Sam_666

https://forums.moneysavingexpert.com/discussion/comment/81916962#Comment_81916962

Very intersting info.
However, FSCA protection for SIPP is clear. Only up to £85k per trading platform or investment.
I.e., lets say you have 3 different investments (eft/fund/share), each worth £85k and all investment held with one SIPP trading platform.
If one of investments goes bust, you will get back £85k.
If two or all three investents go bust at same time, you will only get back £85k total.
If trading platform goes bust, you will only get back £85k total.

Sam_666

https://forums.moneysavingexpert.com/discussion/comment/81916908#Comment_81916908

Yes, many have posted here that they are happy to have £100k's in one platform, but nobody can verify that.
There are clear risk, even though minimal, but cant be ignored.
Cant be ignored for same reason that very very few would choose to keep more then £120k with same bank.
Just because something bad hasnt happen, doesnt mean it never will.

Also, I find it very cheeky that protection hasnt increased in line with savings protection.

Sam_666

https://forums.moneysavingexpert.com/discussion/comment/81916773#Comment_81916773

More knowledgeable then FSCS?
"In respect of SIPPs, where FSCS can pay compensation, we will normally cover the pension at 100% with an upper cap of £85,000. 
Where an investment was held within a personal pension (e.g. a SIPP) or a Defined Contributions OPS, and the UK-regulated provider of the investment fails, FSCS may be able to pay compensation up to £85,000 per pension scheme member. "
Also, uninvested cash (not MMF) are protected upto £120k, as they are classed as savings.

bjorn_toby_wilde

Surely if a UK regulated provider failed though, you would still own the investment?

The vast majority of pension investments are also funds rather than individual shares.

What scenarios do you see that would require compensation to be triggered?

Genuine question. Like many people I have way more than £85k with my DC providers and have never seen it as a problem. I’d like to understand if there is a real risk.

dunstonh

Very intersting info.

However, FSCA protection for SIPP is clear. Only up to £85k per trading platform or investment.

I.e., lets say you have 3 different investments (eft/fund/share), each worth £85k and all investment held with one SIPP trading platform.

If one of investments goes bust, you will get back £85k.

If two or all three investents go bust at same time, you will only get back £85k total.

If trading platform goes bust, you will only get back £85k total.

That is not correct. You are mixing up provider level and investment level.

ETFS and shares do not get FSCS protection. However, if you had three unit trusts/OEIC funds with three different fund houses then each gets its own £85k protection. So, if all three unit trusts from different fund houses failed due to a fraud or other regulatory breach, then you would get back £255,000 if you had £85k+ in each.

Also, with respect to platforms, look at SVS when that failed. The FSCS used up to £85k to pay for the administrators, and the retail investors had their assets and cash transferred in full without deduction. Beaufort was similar, except the limit was £50k back then, but again, the FSCS amount went to the cost of the administrators.

Marcon

https://forums.moneysavingexpert.com/discussion/6658762/aviva-sipp-or-pensionbee

You're currently looking at becoming an employee rather than a freelancer, so possibly wait a bit and see what a new employer offers by way of a pension then consider transferring to that?