Portfolios over 85k

For those with an investment portfolio exceeding the 85k FSCS threshold limit for each financial institution, how do you manage the risk? Do you limit investments with different institutions to 85k or do you take calculated risk and place all your investments with one provider (eg IE), given the relative security of the industry.

A classy, first-world problem, I grant you, but curious how people view the ‘problem’…

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I’m spread across 4 platforms, not because of the 85k limit but each platform gives me a different type of account EG SIPP, US Stocks.

I wouldn’t have a particular issue going over 85k with a long standing well known provider. But may be a bit more conservative with a newer one.

Nice problem to have to think about :slight_smile:

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I agree. I tend to spread across a number of different well known platforms on the basis of both offering and risk reduction.

For any new platforms I will be a little more cautious how much I invest.

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I spread across a few providers - not because of the 85k limit - more for operational risk - what if a platform is hacked and can’t be accessed for a number of days/weeks, that kind of thing.

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Hello, does anyone know if the 85K fscs limit covers the actual Investments or just cash held in the account or both please?

Hi there,
I’m sharing a link here to our help centre that can answer this question, and you’ll also find a link from there to a page on the FCA site that covers this.
I hope this helps you.
Mark

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Thanks so I take it the sum of investments and cash are protected up to 85k.

Will there be an option in the future to transfer out shares into a different provider? In the offchance that my folio ever gets to 85K, it would be really useful to not have to sell & rebuy in order to have the protection spread across a couple of accounts. Any feedback would be most appreciated.

Good morning and I hope you had a lovely weekend.
We do currently offer an ISA transfer out service to other ISA providers. This will involve liquidating assets and transferring the cash proceeds to the new ISA manager to ensure that your money remains tax-free. Unfortunately, we do not yet offer in-specie transfers (asset transfers) but are currently working on being able to provide this in the future. We also hope to provide broker-to-broker transfers for both cash and assets for non-ISA customers a little bit further down the line.
If I can help with anything else, please let me know.
Have a great day,
Mark

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Perfect thanks Mark!
I’m glad this is an option that will be available in the future.
Would definitely be super handy once we reach the 85K level.
Hope you had a lovely weekend too mate and thanks again.
Matty

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Hi Matty,
No problem at all and have a great day.
Mark

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If I’m reading this correctly then anything over 85k cash in a portfolio or the total of all your portfolios is not covered?

I think it would just be helpful to give a broader explanation/clarification.
There are a couple of different risks when talking about investments, apologies if this is obvious but it’s important to make the distinction when talking about how your assets are protected.

Market/Investment Risk

Whenever you invest, your capital is at risk. This could mean the value of your investments goes down as well as up. - I think this is well understood. But to be clear any of the FCA protections discussed on the thread DO NOT relate to Market/Investment risk. There is always the chance your investments will group as well as down.

InvestEngine / Platform Risk

This is the risk of InvestEngineas a platform ceasing tradings/going bankrupt. As an FCA-regulated entity, there are a number of measures in place to protect customers. I won’t go through them all but two of the main protections are as follows;

1) Assets are held in a segregated account at CREST

Investments are held in a pooled client account at CREST (operated by Euroclear UK and Ireland).
When you buy ETFs with InvestEngine, once those trades settle you are listed as the beneficial owner.
Anything happens to InvestEngine - You are still the beneficial owner of those ETFs

2) Financial Services Compensation Scheme (FSCS) £85,000 deposit protection

We are a member of the FSCS meaning your deposit will be covered up to £85k per eligible person. So in the event that anything happens to InvestEngine your money held on deposit (i.e. cash in your portfolio) would be protected. Follow this link for more information.

There are also other requirements placed on how we operate, designed to protect you as an Investor. They get quite technical, so I won’t go into detail but they include - Capital requirements for InvestEngine to operate, Daily assets reconciliations, CASS rules, Cash is held is a segreggated Client Money Account at Natwest.

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I need further clarification if possible please.

Say as an example, I deposit and invest £60k. After 5 years it is worth £100k.

If Invest Engine ceases trading/goes bankrupt what would I get back under FCSC?

If Euroclear UK and Ireland (where clients investments are held) goes bankrupt what would I get back please?