#11



Unit Trusts and Open Ended Investment Companies use trustees to ring fence your assets so if the fund manager fails to meet its obligations they are protected by the FSCS
Originally posted by ColdIron


Yes, I was vaguely aware of that.

However, does the protection apply to each OEIC or to the trustees?

I think each fund house seems to use one trustee. But there are many OEICs, so I was wondering if the protection is at the trustee level or at the OEICompany level.

#12



So what happens if fraud is involved?
Originally posted by StevieJ


Dont know - as far as I know it has never happened with a mainstream regulated provider. Do you worry when you buy your pills from Boots that maybe it's a giant scam operation and the pills are fake? Perhaps the BMW you recently bought from what you thought was a main dealer is a Chinese copy. At some point paranoia needs to be tempered by reality.

#13



Yes, I was vaguely aware of that.

However, does the protection apply to each OEIC or to the trustees?

I think each fund house seems to use one trustee. But there are many OEICs, so I was wondering if the protection is at the trustee level or at the OEICompany level.
Originally posted by TrustyOven


Protection is at the company level.

#14
If you use HL to buy Vanguard LS, is the money not actually with HL in a fund of fund effectively?



e.g. its actually HL who invest in the LS companies and we only buy HL's units of that fund?

#15



If you use HL to buy Vanguard LS, is the money not actually with HL in a fund of fund effectively?



e.g. its actually HL who invest in the LS companies and we only buy HL's units of that fund?
Originally posted by Zola.


HL buy the fund on your behalf. It's your fund, HL are the intermediaries. HL cant invest in thousands of funds on the offchance you might want to buy one.

#17
Your money should be invested in shares (or whatever) and held with a custodian. As I understand it, the only real danger is that somebody has done a Madoff and trousered your money instead of buying the shares.

Madoff got away with it because he was practically a one man operation, keeping everything to himself, doing business on a nod and a wink encouraging his clients to keep quiet with the suggestion they were benefitting from insider trading.

PLC's and Companies like Vanguard are at the other end of the scale. So many people are involved that if someone was trousering your money, someone else would find out about it and expose them before they got away with much.

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