SIPP FSCS Protection

[barrydidit]

The good news is that you won't have to dwell on it for too long if it does happen

https://www.independent.co.uk/news/h...-a8287001.html

[sasguru]

Hence why 99% of your money is better placed into property.

Correct. Just not in the UK.

[Hobosapien]

Correct. Just not in the UK.

Has Elon Musk started selling plots of land on Mars yet?

[TwoWolves]

Hence why 99% of your money is better placed into property.

If you buy a 17 bedroom country pile set in 5 acres, and the world goes tits up, you still have a 17 bedroom country pile set in 5 acres.

A pension pot on the other hand, will be worth £50K tops when the big crash finally arrives....

Which is exactly why the Boomers are buying property like mad and fueling the bubble in property. They've seen the UK default.

[AtW]

They've seen the UK default.

Err, when did that (UK default on sovereign debt) happen?

[DimPrawn]

Reply from SIPP provider:

Thank you for your email.

Investors are likely to be covered by the provisions of the Financial Services Compensation Scheme (FSCS), if Hargreaves Lansdown ceases trading. It can award up to £50,000 in compensation to any one investor where they decide that an investment business is in default and is unable to satisfy any claims against it. In addition, if one of the banks which we use for depositing cash balances is declared in default, each individual is entitled to 100% of the first £85,000 in total in compensation for losses across all their deposits with that institution.

All client money is held by us on trust and is segregated from our own funds in accordance with the FCA's client money rules and guidance so that any creditors of Hargreaves Lansdown would have no legal right to it and we cannot use any of this money to cover Hargreaves Lansdown's obligations. Client money in the Vantage SIPP and PMS SIPP is held in separate SIPP client bank accounts which are segregated from other money held by us.

Our senior management and Treasury Committee are responsible for periodic reviews of the institutions with which our deposits are held and the proportions in which they are held. The security of the institutions we use is paramount; we monitor the performance and security of the banks we use daily to ensure we are able to anticipate and react to changing economic and institutional conditions.

Our policy is to only use banks with a UK banking license which are covered by the Financial Services Compensation Scheme (FSCS). The FSCS is backed by government and protects clients’ deposits up to £85,000 in the unlikely event that a bank, building society or credit union defaults. A client’s individual protection will depend on their aggregate balances held by that institution.

We have continued to maintain a conservative approach on which of these banks to use, preferring those which we believe the government would fully support in any further financial crisis.

Stock you hold with us is held in the name of or to the order of Hargreaves Lansdown Nominees Limited, or by an approved third party custodian. Hargreaves Lansdown Nominees Limited is a non-trading company so it cannot run up liabilities of its own and Hargreaves Lansdown accepts full liability for any default by our nominee company. We maintain detailed records of all your investments and assets for which you will at all times remain the beneficial owner. We do not lend stock held in the Vantage or PMS Services.

Our senior management and CASS Committee are responsible for periodic reviews of the nominees with which stock is deposited.

[OwlHoot]

Err, when did that (UK default on sovereign debt) happen?

1672

So you see, they just can't be trusted