Home Services Why Fidelity How is my money protected?

How is my money protected?

You know that the value of investments can fall as well as rise, but you may also be concerned about how safe it is to hold all your investments with one company. We’ve gathered some commonly asked questions below to answer those concerns.

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How financially stable is Fidelity?

Fidelity is an independent global investment company that was established over 45 years ago and is still owned by the founding family, senior management and staff. As we are privately owned we do not have to answer to shareholders so we can make decisions for the long term on behalf of our customers.

Fidelity has different companies that provide and distribute investments to our clients in the UK. All of these companies are authorised and regulated by the Financial Conduct Authority, which requires us to have appropriate systems and controls for managing our business, with strict rules about the way we hold client money and assets.

In accordance with Financial Conduct Authority (UK's financial regulator) rules, we always hold a significant amount of liquid (i.e. easily accessible) capital. In the unlikely event this capital is required, it will help with the winding down of the business and make it easier to return your money and assets in an orderly way.

Is Fidelity regulated?

Fidelity has different companies that provide and distribute investments to our clients in the UK. All of these companies are authorised and regulated by the Financial Conduct Authority, which requires us to have appropriate systems and controls for managing our business, with strict rules about the way we hold client money and assets.

You can visit the Financial Conduct Authority website at http://www.fca.org.uk or telephone the Financial Conduct Authority Consumer Help Line on 0800 111 6768 to check the registration for our companies.

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What is the difference between a fund provider....

Provider

  • A provider is a company that creates and manages its own investments. Also known as a ‘fund provider’ or ‘investment provider’.

  • You can usually buy investments from these providers, such as the Fidelity Special Situations Fund.

Distributor

  • A distributor is a company that sells investments from a range of providers. Also known as a ‘fund distributor' or an ‘investment platform’.

  • You can usually use a distributor to buy investments from a wide range of providers – like you will find on our Investment Finder.

The money you invest with us either as a provider or as a distributor, or both, is protected by strict regulatory requirements, known as client money and asset rules. These rules apply whether you invest £8,000 or £800,000, and they also apply whether you hold all your investments with a single distributor, such as Fidelity, or you hold your investments through multiple distributors.

In other words, the rules apply the same whether all your eggs are in one ‘provider’ basket, or split among many.

What protection do I have under the client money and asset rules?
What happens if a distributor becomes insolvent?
What happens if a provider becomes insolvent?

What is the Financial Services Compensation Scheme?

The Financial Services Compensation Scheme (‘FSCS’) is an independent body set up by the Government under the Financial Services and Markets Act 2000 and funded by the financial services industry. As the “fund of last resort” for customers of authorised financial services firms, it can pay you compensation if a firm is in default and cannot meet any valid claims against it.

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In what circumstances might the FSCS apply to my investments?
Are there limits to the amount of FSCS compensation?
If a client invests through Fidelity and holds UK domiciled mutual funds from both Fidelity and other providers, does the limit per provider still apply?

Have more questions?

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