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  • FIRST POST
    • LULULU1
    • By LULULU1 15th Apr 19, 6:52 PM
    • 415Posts
    • 35Thanks
    LULULU1
    SIPP over 100k
    • #1
    • 15th Apr 19, 6:52 PM
    SIPP over 100k 15th Apr 19 at 6:52 PM
    My partner has a SIPP with AJ Bell which is now over 100k.

    It just occurred to me that only a certain amount of this is covered if they should go bankrupt.

    Would it be possible to move some of this money to another SIPP provider to ensure all of the money is covered in the event of a problem with AJ Bell.

    Thanks
Page 1
    • FatherAbraham
    • By FatherAbraham 15th Apr 19, 7:18 PM
    • 956 Posts
    • 716 Thanks
    FatherAbraham
    • #2
    • 15th Apr 19, 7:18 PM
    • #2
    • 15th Apr 19, 7:18 PM
    My partner has a SIPP with AJ Bell which is now over 100k.

    It just occurred to me that only a certain amount of this is covered if they should go bankrupt.

    Would it be possible to move some of this money to another SIPP provider to ensure all of the money is covered in the event of a problem with AJ Bell.

    Thanks
    Originally posted by LULULU1
    If AJB becomes insolvent (in the UK, only individuals can become bankrupt, not firms), so what?

    The assets in the pension arrangement are beneficially held by the member, and can't be used to pay the creditors of the insolvent firm.
    Thus the old Gentleman ended his Harangue. The People heard it, and approved the Doctrine, and immediately practised the Contrary, just as if it had been a common Sermon; for the Vendue opened ...
    THE WAY TO WEALTH, Benjamin Franklin, 1758 AD
    • LobsterMemory
    • By LobsterMemory 15th Apr 19, 7:25 PM
    • 114 Posts
    • 68 Thanks
    LobsterMemory
    • #3
    • 15th Apr 19, 7:25 PM
    • #3
    • 15th Apr 19, 7:25 PM
    https://www.youinvest.co.uk/security-centre/keeping-your-investments-safe
    • AnotherJoe
    • By AnotherJoe 15th Apr 19, 7:29 PM
    • 13,407 Posts
    • 15,817 Thanks
    AnotherJoe
    • #4
    • 15th Apr 19, 7:29 PM
    • #4
    • 15th Apr 19, 7:29 PM
    Yes it would be possible.
    I doubt its worth the effort and the extra costs though, probably not until its around double that.
    As said by FA, AJ Bell going bust wouldnt be the issue, (though it would cause a few months delay no doubt). To lose the money you'd need massive fraud at AJ Bell. Something along the lines of LC&F though with many many more people involved.
    • Thrugelmir
    • By Thrugelmir 15th Apr 19, 7:44 PM
    • 62,849 Posts
    • 55,820 Thanks
    Thrugelmir
    • #5
    • 15th Apr 19, 7:44 PM
    • #5
    • 15th Apr 19, 7:44 PM
    My partner has a SIPP with AJ Bell which is now over 100k.
    Originally posted by LULULU1
    What are the investments held?
    "The most dangerous thing is to buy something at the peak of its popularity. At that point, all favourable facts and opinions are already factored into its price and no new buyers are left to emerge." - Howard Marks
    • LULULU1
    • By LULULU1 15th Apr 19, 8:23 PM
    • 415 Posts
    • 35 Thanks
    LULULU1
    • #6
    • 15th Apr 19, 8:23 PM
    • #6
    • 15th Apr 19, 8:23 PM
    Hi Thrugelmir,

    They are currently Shares.
    • dunstonh
    • By dunstonh 15th Apr 19, 11:57 PM
    • 97,959 Posts
    • 66,118 Thanks
    dunstonh
    • #7
    • 15th Apr 19, 11:57 PM
    • #7
    • 15th Apr 19, 11:57 PM
    Shares don't have FSCS protection. So, it is just the administrator that you need to worry about. However, if you are investing in shares, then you pretty much dont care about FSCS protection anyway. A minute concern.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • LULULU1
    • By LULULU1 16th Apr 19, 9:45 AM
    • 415 Posts
    • 35 Thanks
    LULULU1
    • #8
    • 16th Apr 19, 9:45 AM
    • #8
    • 16th Apr 19, 9:45 AM
    Sorry, I don't understand ?
    • Reaper
    • By Reaper 16th Apr 19, 10:05 AM
    • 6,456 Posts
    • 4,811 Thanks
    Reaper
    • #9
    • 16th Apr 19, 10:05 AM
    • #9
    • 16th Apr 19, 10:05 AM
    Sorry, I don't understand ?
    Originally posted by LULULU1
    Shares are not covered by the FSCS. However if your provider goes bust it doesn't matter much because your shares are ring fenced. They will get moved to a new provider and you will carry on (much like your gas and water supplier switch if the company running it goes bust).

    The only time the FSCS comes into it is in the case of fraud. If your provider pretended to buy shares as instructed but actually put the cash into a Swiss bank account.
    • LULULU1
    • By LULULU1 16th Apr 19, 10:38 AM
    • 415 Posts
    • 35 Thanks
    LULULU1
    Thank you Reaper. Got it now.
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