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@frank9755
These are a couple of good articles on the diversifying point
https://monevator.com/assume-every-investment-can-fail-you/
https://monevator.com/investor-compensation-scheme/
TLDR there is risk in all your eggs being in one basket - mainly from fraud, breach of regulations or IT systems failure. The main risk is not that all your money will disappear but that there would be disruption and you wouldn't be able to access it for a period - which might be exactly when you want/need it, and that some of it would disappear to cover administrator's costs.
The last comment on the second one actually talks about HSBC being fined £57m the other week for not classifying investments as being covered by FSCS when it should have done.
But it doesn't seem to be a major deal and most people don't seem to fuss about it.
I think I'll split it between two funds as that is very easy to do and costs me like £5. Ideally I'd also split between two platforms in case Iweb (owned by Lloyds) dies, but I CBA to do the transfer, and it will be more admin down the road, so I'll live with that.