We take security very seriously at Nutmeg. There are a few elements to our service which we hope will put your mind at rest.
1. We keep a constant eye on your portfolio
If you open an account and invest with us, we act as your discretionary investment manager. This means that, based on the information you entered on your profile about your time horizon, your attitude to risk and your financial situation, we make all of the investment decisions for you. So you can relax, knowing that someone is keeping an eye on your portfolio and re-balancing it as necessary.
2. Barclays and StateStreet safeguard your assets
Like many investment managers, we believe that the safest way of looking after your investments is to appoint “custodian banks”, which hold your money and the investments we purchase for you. Our asset custodian is StateStreet Corporation with $28 trillion in assets under custody. StateStreet serves thousands of investment managers, high-net-worth individuals and major banks worldwide. Your assets are in good hands.
StateStreet will never lend it to third parties or mix it with StateStreet's or Nutmeg's own assets.
Any uninvested cash is kept with Barclays Bank where it is segregated from Barclays' and Nutmeg's own funds.
Your investments and any uninvested cash are therefore protected in the unlikely event that either Nutmeg, State Street or Barclays are declared insolvent. If this were to happen, your Nutmeg account would likely be re-assigned to another financial institution and you would be kept informed.
3. You are protected by the Financial Services Compensation Scheme
Because of the segregated nature of your account it’s very unlikely you would need further protection. However, in the unlikely event that you are unable to recover your investments, you are also protected by the Financial Services Compensation Scheme (FSCS), to a limit of £50,000. More information about the FSCS can be found on their website. Please keep in mind that while your assets are protected under the FSCS scheme, your investment might fall as well as rise due to stock market performance and any such fall wouldn't be covered by the FSCS.
We hope this has put your mind at rest. Do please get in touch with us if you need any further help.