What happens in the event of insolvency of the fund-providing bank?
In the event of insolvency of the fund-providing bank, the investment instruments (ETFs and index funds) are considered special assets and are protected against bankruptcy. The securities do not fall into the insolvency estate, but remain the property of the investor. In practice, of course, this does not entirely protect against inconvenience, as it may take some time for the securities to be transferred to another fund company.
Moreover, since True Wealth is independent in its choice of investment instruments, there is no concentration risk and the investment instruments are – in contrast to several other asset managers – diversified among various providers.