SIPP providers and the FSCS £85K limit

[Greenmantle]

I am presuming that quite a few people who have SIPPs are ignoring the fact that the only protection available against the SIPP provider is the FSCS £85K limit unless they have multiple SIPPs with different providers?

[Countdown]

My understanding was that if you have invested in shares within a SIPP the shares are safe even if the SIPP provider goes belly up?

[98elise]

Countdown said:

My understanding was that if you have invested in shares within a SIPP the shares are safe even if the SIPP provider goes belly up?

That's my understanding. You own the shares/funds, not the provider.

[Greenmantle]

I was just reading about this case.

https://www.sippadvice.co.uk/guides/hartley-pensio...

The complete timeline will be July 2022 till February next year.
Initially the FSCS refused to compensate for the "exit and administration charge" which is poor but has now agreed to compensation.
All in all over 2 years to sort out nearly 17000 SIPPs isnt good especially if the clients are relying on the money via draw downs.

[Whataguy]

The £85k just applies to cash holdings?

Shares are held in the names of the holders, not the SIPP company, I believe

[Jawls]

As others have said, your risk is add administrative faff, not losing the money.

For this reason I’d never personally have a big ISA or SIPP with a small provider. But HL, Vanguard, L&G, Aviva etc aren’t going anywhere.