Switching investments within my PEP's ?

dunstonh

re-registration doesnt take you out of the market. It leaves you with same holdings. It is just changes the plan manager.

Transfer sells the holdings to cash and the old provider writes a cheque to the new provider who will buy your new investments when they get the money.

In either case, the forms come from the receiving scheme and not the original scheme (AT in this case).

cheerfulcat

GTG, how did the HBOS shares get into the PEP in the first place?

GTG

dunstonh wrote: »

re-registration doesnt take you out of the market. It leaves you with same holdings. It is just changes the plan manager.

Transfer sells the holdings to cash and the old provider writes a cheque to the new provider who will buy your new investments when they get the money.

In either case, the forms come from the receiving scheme and not the original scheme (AT in this case).

Fidelity do not allow you to sell PEP holdings and hold the proceeds in cash therefore a transfer of any PEP holdings from Fidelity to another plan manager is not possible. As explained above I used the forms from the receiving scheme (ATS). Surely their restrictions are contrary to the rules and regulations in this regard.

I can feel a letter to the FSA coming on!

Cheerfulcat wrote:

GTG, how did the HBOS shares get into the PEP in the first place?

It was about 10 years ago so I don't recall, I've looked at the paper work I have retained, the first Fidelity statement circa 2000 has my adviser as Best Investment Brokers Plc. I don't know how this came about but suspect they were appointed by The Halifax before their privitisation. Best Investment Brokers name only ever appeared on the first statement. I do recall that at some point in time Fidelity were offering to manage PEP's for windfall shares with no annual charges hence my reason for going with them. If I recall correctly this lasted for a couple of years at which point they introduced an annual fee. The fee was waived if you held another Fidelity investment. That was one of my motivations for investing in their European Fund. That's about all I recall I'm afraid.

Thanks for your and dunstonh help BTW.

dunstonh

Fidelity do not allow you to sell PEP holdings and hold the proceeds in cash therefore a transfer of any PEP holdings from Fidelity to another plan manager is not possible. As explained above I used the forms from the receiving scheme (ATS). Surely their restrictions are contrary to the rules and regulations in this regard.

That is not consistent with my experience. Last Fidelity PEP transfer out I did was last earlier in the year and it went through fine.

GTG

dunstonh wrote: »

That is not consistent with my experience. Last Fidelity PEP transfer out I did was last earlier in the year and it went through fine.

Please see below a copy of my email to Fidelity and their reply on this issue.

Dear Mr Unhappy Investor

Thank you for your email about selling funds.

I confirm that we do not have the facility to hold as cash the proceeds from a sale in an ISA pending reinvestment. In the case of a sale the funds are paid out to the client and the respective tax efficient wrapper lost.

If you have any further queries, please email me or contact our ServiceLine on LoCall 0845 7446600 and one of our Account Executives will be able to assist you. We are open Monday to Friday from 9am to 6pm.

Yours sincerely

Rekha Raghavan
www.fidelity.co.uk


>
> Comment : If I wanted to sell my holdings in both of my PEPS could a hold the proceeds of sale in my PEP Settlement Cash Asset Account for a period of time until I decided to re invest?
>

I am really surprised that they have not kept their IFA's up to date with their change in policy!

cheerfulcat

GTG, it seems to me that you are attempting to sell up and then transfer. What you need to do is tick the " cash only " box on the Alliance Trust transfer form; this means that Fidelity will sell the securities and transfer the proceeds by cheque directly to AT ( apologies if this is what you have done & they've made a pig's ear of it ).

EDIT: According to this leaflet from HMRC, windfall shares may not now be transferred to an ISA - presumably the rules have changed since the days of the PEP. You may have to sell the HBOS shares.

And this from Fidelity ( see 30a ) confirms that transfers are made in cash so if they give you any more nonsense, quote it at them.

dunstonh

I am really surprised that they have not kept their IFA's up to date with their change in policy!

They havent changed their policy. You are doing it wrong. They dont have a cash fund. They sell the investments upon receipt of the transfer request. You are trying to put it into cash whereas that is their job when they get the transfer form.

EDIT: According to this leaflet from HMRC, windfall shares may not now be transferred to an ISA - presumably the rules have changed since the days of the PEP. You may have to sell the HBOS shares.

That only applies to new windfall shares. Not those that were done in the past. It was changed to stop people putting amounts into ISAs that were far greater than the ISA allowance. People were able to put amounts far in excess of the PEP allowance into PEPs and Gordon Brown put an end to that.

GTG

dunstonh wrote:

You are doing it wrong.

You are wrong to say that!

dunstonh wrote:

You are trying to put it into cash whereas that is their job when they get the transfer form.

I did not say that and I certainly have not tried that, I enquired if it is was possible to sell the holdings and keep the proceeds in cash for reinvestment at a later date! When I was told that this was not possible I attempted to transfer the holdings to AT. I used AT's official form to effect the transfer which I mentioned in a previous post and you confirmed that this was correct.

I do hope you pay better attention to your clients and do not try and read things into situations which are not there!!!

Cheerfulcat, thanks for the pointer to Fidelitys' client terms. It appears that they don't even comply with their own terms, or at least their terms are contradictory see below.

Section 4 -PEP's Only

31 TRANSFER TO A DIFFERENT PEP MANAGER
You may instruct Fidelity to transfer all or part of
your PEP for any Year to another approved
manager. Transfers will be processed by Fidelity
within such time as you may stipulate (not being
less than 14 days) and in any event within 30 days
of receipt of your instruction. Except as provided in
clause 5(f) (re-registration of Fidelity Products), only
cash may be transferred, and Fidelity will convert
your Investments into cash after agreeing the
transfer with the new manager. Fidelity may deduct

from the transfer any sums due to it.

5(f) If you wish to re-register an existing holding of
Shares or Units in a Fidelity OEIC, Recognised
Fund or Unit Trust to be held within your
account with a different provider, Fidelity will
arrange this at your request if the other provider
is willing to accept the re-registration. Only
complete holdings of Shares or Units in such
Fidelity Products may be reregistered in this
way. A charge may be made by the other
provider when you re-register Shares or Units. If,
following re-registration of the Shares or Units,
Fidelity receives an income payment, dividend
or other cash amount relating to such Shares or

Units, this amount will be sent to you by cheque.

My holding in Fidelity European Fund was re-registered (that was the terminology used by both Fidelity and AT), the holding was not transfered as cash as per the terms above. The holding was merely re-registered in AT's nominee name.

Time to speak to someone in authority at Fidelity.

cheerfulcat

Time to speak to someone in authority at Fidelity.

Best of luck! And keep us posted, won't you?

dunstonh

I do hope you pay better attention to your clients and do not try and read things into situations which are not there!!!

It is actually quite hard to follow your posts. You are clearly doing something wrong as what you want to do is not a problem. Being rude to me isnt the answer.

edit: it's not me it is you. Look at what you have typed again and you will see that you are mixing up reregistration and transfer and you do indicate that you have asked Fidelity to put it into cash.