Is it worth opening multiple SIPPs ?

[CautiousPaul]

I have a SIPP with AJ Bell, which is fine and mostly invested in shares with a bit of cash. I'm planning to move the proceeds of another DC pot into my SIPP and buy more shares. As I understand it, if AJ Bell went bust my shares would be safe as they are ring-fenced and any cash up to £85k would also be safe as per FSCS. So should I just proceed or avoid putting all of my eggs into the AJ Bell basket ?
NB I'm likely to always be well under the 85K cash limit.

Many thanks in advance for any replies.

[BullDog]

In my opinion, no. Not worth the trouble of running more than one SIPP. AJ Bell, II, HL and the like aren't going anywhere.

[JohnB]

Its worth having multiple accesses to your money, so 2+ fund providers, 2 brokers. But if you have one SIPP and one ISA with different brokers, you will still have access, any more gets a lot of bother.

[kempiejon]

So should I just proceed or avoid putting all of my eggs into the AJ Bell basket ?

I'm not so worried about the failure or need of FSCF but could a cock up, computer failure or cyber attack lock you out of your only income source, how long could you last?
I have a couple of bank accounts, ISAs, savings accounts and credit cards all different providers (well 2 savings accounts linked to current accounts). They kind of have different jobs but can be used to provide back up. Different providers will offer some protection against catastrophic failure of institution. More usefully, different payment methods will protect you from short term interruptions to service. We've heard of some payment methods being shut down for a few days due to technical problems.
So far only one SIPP for me though I expect I could open a new one in the fulness of time. My income will come from a handful of sources so losing my 1 main SIPP for an interruption wouldn't be a massive problem.
With a moniker like Cautious perhaps you'd be happier with a 2nd SIPP?

[mc2fool]

As I understand it, if AJ Bell went bust my shares would be safe as they are ring-fenced and any cash up to £85k would also be safe as per FSCS.

Your shares are supposed to be ring-fenced, however there have been cases where (admittedly less reputable) brokers have got bust and the administrators couldn't match up the broker's and the clients' records and just couldn't find clients' holdings, and they only got back the FSCS covered amount.

This is not to cast any aspersions on AJ Bell, who I would be very surprised if that happened to, but it is worth remembering that ring-fencing only happens if the broker is, firstly, playing by the rules and, secondly, doing so competently.

Also, if they are playing by the rules then actually cash will be protected (potentially) up to £425K. See viewtopic.php?p=649933#p649933

[CautiousPaul]

Thanks for the replies on this.

I have concluded that when the time comes, probably two years hence, I will open another SIPP. The words "Your shares are supposed to be ring-fenced,.." sent a shiver down my spine!

cheers