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...
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