A Guide to Autocalls - A 20-Year Evolution

Plan managers, administrators and custodians

For investments of £500k or more, a customised autocall can be created. However, this investment amount is beyond the reach of most individual investors for a single investment. To make autocalls accessible to retail investors, Plan Managers step in to purchase the securities from the counterparty bank and package them into investment offerings with minimum investment thresholds as low as £3,000. Once an investor proceeds with an autocall, their investment is held on their behalf by an administrator custodian, typically a specialised stockbroker. The administrator custodian is responsible for safeguarding the investor’s assets.

In the rare event of a shortfall caused by the failure of the administrator custodian, eligible investors retain certain protections. They potentially have the right to seek recourse through the Financial Services Compensation Scheme (FSCS), which offers compensation of up to £85,000 per investor in the event of breach of contract. It’s worth noting that the involvement of Plan Managers, Administrators, and Custodians ensures that autocalls can be made more accessible to retail investors while providing a level of protection and professional oversight for their investments.

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