Steve Cook, IFA, St Albans-How does Lonsdale Services protect your investments?

Thursday 22 November, 2018

Following the recent insolvency case of Beaufort Securities our clients want to know how we protect their investments.  At Lonsdale Services client money is invested with well-respected providers including: Aegon, Aviva, Ascentric and Standard Life. 

These providers follow the FCA Client Asset (CASS) rules relating to the holding of client assets and cash, and these providers have appropriate controls in place which are independently audited annually to make sure that:

  • Whether investing in an ISA or General Investment Account, OEIC or unit trust your collective investment assets with the fund manager are held completely separately from the providers own corporate assets and are ‘ring-fenced’ in a separate nominee name.
  • Your cash is also ‘ring-fenced’ from the providers own corporate money and held in pooled client money trustee bank accounts with a UK bank.

How Collectives are managed

Unit trusts or open-ended investment companies (OEIC’s) operate under well-defined FCA rules.  These rules require unit trusts and OEIC’s to ring fence assets and to have robust controls in place to ensure that the interests of investors are protected.

If a provider defaults the investment is safe as it is held with an external fund manager and the creditors of the provider cannot touch it.

If external fund managers default the investment is still safe.  The appointed custodian holds the assets separately from the fund manager’s own assets.  The only time that a claim under the FSCS will be relevant is in the event of the fund manager acting dishonestly, fraudulently or negligently.  Any claim will be under the investment business category of the FSCS that currently has a limit of £50,000.

Steve Cook, Director and independent financial adviser, Lonsdale Services, St Albans said:

‘We want to reassure our clients that we do everything possible to safeguard their investments.   Client money is invested with reputable third party providers who follow the FCA rules relating to the holding of assets and cash.  We regularly review our provider investment protection rules.  As collective investments are held completely separately from the providers own corporate assets investors should be reassured that they have another level of protection.’

The value of investments can fall as well as rise.  You may not get back what you invest.

For more information read: How Lonsdale Services protects data

 

 

 

Steve Cook, Director and independent financial adviser, St Albans, Hertfordshire

Steve Cook, Director and independent financial adviser, St Albans, Hertfordshire

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