"Non-Deposit" Investments

[gnf_ireland]

Hi

We all know the government have guaranteed bank deposits for 2 years, but what about non deposit investments. By this I mean funds (index linked or managed) etc.

For example, if Bank of Ireland went bust tomorrow morning, the bank deposits are guaranteed, but if you have a fund with Bank of Ireland Life, what would happen to this money ?

I would have assumed that if you purchased units in a fund, then the money would be used to purchase these units (after charges) and the secured against these shares ? Is that the case ?

Thanks

 

[jpd]

Depending on the type of fund, the assets would normally be held by trustees and are held separate from the bank's own assets. The exact nature of the fund should be in the documentation that you receive when investing.

Funds invested in insurance companies bonds or funds can be held in a different structure but again it depends on the detail of the fund.

 

[gnf_ireland]

thanks jpd - I will go research it a bit more. I did not imagine it was an easy answer !