We are not authorised by the FCA to hold client assets or client money. We arrange for SEI Investments (Europe) Limited ("SEI") to provide safe custody, administration and other associated services to you. As a result, there is a direct relationship between you and SEI. SEI is authorised and regulated by the Financial Conduct Authority ("FCA"), with firm reference number 191713.
All investment assets are held on your behalf by a nominee company, SEI Global Nominee Limited, a non-trading subsidiary of SEI. Keeping investment assets entirely separate within a nominee company ensures that, in the unusual event of default of either Netwealth or SEI, your investment assets would not be available to an administrator or liquidator of Netwealth or SEI. SEI may use a number of third party custodians (also known as sub-custodians) to administer and hold some of your assets. For your Netwealth investments, these are CoFunds or Allfunds for fund investments, and CREST for ETFs, Gilts and other traded securities. CoFunds and Allfunds are investment custody and administration platforms; CREST is the central UK-based central securities depository that holds UK equities and UK gilts as well as Irish Equities and other international securities.
Any uninvested cash is kept in "client money" bank accounts which are established with trust status, meaning that money held within the accounts is recognised by the bank as belonging to Netwealth’s clients rather than to Netwealth or SEI.
Your investment assets and uninvested cash are protected by the Financial Services Compensation Scheme ("FSCS"). The current compensation limit in relation to investments is £50,000 per eligible claimant. Cash is currently protected to a maximum of £85,000 per bank per eligible claimant. More information on the FSCS can be found on their website www.fscs.org.uk.