How safe is your clients' money?

Custodian’s role

clock • 4 min read

In the context of a financial services firm going bust, Cherry Reynard looks at the important distinction between a bank and a fund group or platform - the latter two do not hold client assets

            The financial crisis prompted a significant reappraisal of just what constitutes ‘safe' in financial services. Previously, few would have considered whether money held with a major institution, such as a high street bank, would disappear but the experience of Northern Rock forced a rethink. Since then, investors have been understandably cautious about how their money is held - and by whom. These concerns, naturally, spread to fund management groups and raise questions that may trouble your clients. Is their money at risk if a fund manager goes bust? What hap...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

NextWealth MD Hopkins on staying ahead of advice sector changes, data challenges and flattening MPS fees

NextWealth MD Hopkins on staying ahead of advice sector changes, data challenges and flattening MPS fees

Making technology work better

Katrina Lloyd
clock 03 July 2025 • 9 min read
IFAs look to boost clients' private markets exposure

IFAs look to boost clients' private markets exposure

Expect increase in stock market volatility

Jen Frost
clock 02 July 2025 • 2 min read
Stock pickers call for caution over rapid return to US equities

Stock pickers call for caution over rapid return to US equities

Quilter's WealthSelect boosts fixed income and reduces equity exposure

Linus Uhlig
clock 01 July 2025 • 1 min read