FSCS protection - ISA and SIPP, same fund

Jacksoag

If I have the same fund invested in both my SIPP and my ISA and the fund defaults, do the FSCS protections allow max £85k protection or 2 x £85k protection?

Jacksoag

By same fund I mean UK-domiciled OEIC or UT.

Albermarle

What fund is is? For mainstream funds on mainstream platforms, the chance of something going that badly wrong that FSCS compensation comes into play is about zero.

masonic

The answer to your question is that the compensation relating to the fund defaulting would be limited to £85k per eligible investor. If you have more than one fund from the same fund house, and this fails, then I suspect it would be £85k max across the affected investments.

dunstonh

Typically, it is £85k per fund house. However, it is theoretically possible that the pension and an ISA would be treated twice due to the ownership structure. It has never been tested and probably never will be so nobody really knows for sure.

gm0

This is NOT a rules and certainty a priori thing. Incentives

In a major crisis caused by fraud or something otherwise unexpected

Lawyers make out like bandits. Everyone sues everyone (insurers, outsourcers, companies). Lawyers profit. Former customers - wait.

Government fearing subsidy falling upon the public purse find a way to dissemble and delay about the regulatory backstop - citing ongoing litigation. Delaying an unwelcome decision being a civil service core competence. It can go on a long time.

The outcome is uncertain and delayed. See also Equitable Life for an example.

I can't find the link quickly this morning but there was a more general House of Lords briefing on pensions regulation which basically says the same thing on pensions regulation as a backstop on trusts and pensions in general. Untested. Nobody really knows.

It's complicated via layers of law applied over older drafting. To the benefit of lawyers. I forget the drafting but I think the sentiment was "unknown" and absent testing in actual fire - "unknowable".

We are - as they say - where we are.