Royal Bank Invest Are my investments protected?
The assets held within each of the Personal Portfolio Funds are held separately from the bank by an independent company called a depositary, which is authorised by the Central Bank of Ireland. So your investments would be safe even if Royal Bank failed. Your investments through Royal Bank Invest may also be covered by the Financial Services Compensation Scheme in some scenarios.
Keeping your investments safe
The reason your investments would be safe even if Royal Bank failed is due to the way we keep records and the way your investments are held.
Royal Bank keep records of the investments of each of our customers. These records are held separately from the investments.
Where are the assets held?
The assets held within each of the Personal Portfolio Funds are held separately from the bank by an independent company authorised by the Central Bank of Ireland.
This company is called a depositary. The depositary keeps the assets of the funds safe and holds them separately from their own. The bank of New York Mellon SA/NV, Dublin Branch is the depositary.
The role of Coutts
You may also be wondering whether the role of Coutts affects the safety of your investments. Coutts acts as investment manager to the Personal Portfolio Funds but your investments are held separately from those of Coutts. So if Coutts failed, your investments would be secure from Coutts insolvency.
In that instance the management company of the Personal Portfolio Funds would look for a new investment manager to run the funds.
Scenarios where you have FSCS protection
The Personal Portfolio Funds available through Royal Bank Invest are based in Ireland and so outside the jurisdiction of the Financial Services Compensation Scheme. But there are some scenarios where your investments through Royal Bank Invest could be covered by the UK Financial Services Compensation Scheme (“FSCS”), up to a maximum of £85,000, i.e. 100% of first £85,000 per person. However, it’s important to understand that the FSCS doesn't cover you in the event that your investments do not perform as expected and you get back less than you originally invested.
Money you hold in your Royal Bank Invest ISA cash account. This money is treated as a deposit so is covered by the same FSCS protection that applies to savings accounts and current accounts.
If your loss related to bad investment advice provided by Royal Bank. If Royal Bank failed your loss could be covered if your decision to invest was a result of bad investment advice provided by Royal Bank. For example this could apply if you get a recommendation from our online automated advice service but not if you make your own investment choice.
If your loss related to Royal Bank failing to provide proper safekeeping of your investments
If your loss related to Royal Bank misrepresenting important facts about the Personal Portfolio Funds.
Please see the FSCS website for more information on the circumstances in which you might be able to make a claim.
Already a Royal Bank Invest customer?
If you've already invested online through Royal Bank Invest, you can track the progress of your investment as and when you want with your online investment account.