Strange activity on my Fidelity account

dunroving

Very strange - I just logged into my Fidelity account and saw two things:

£4,000 in HMRC tax relief has been credited to my SIPP today.
Also, today a £4,000 order purchasing AXA Framlington Biotech Fund Z Acc is showing. It's showing as Purchase Pending. (also my SIPP account)

It's strange because I didn't place an order for AXA Framlington Biotech Fund Z Acc! I'm currently not even in the UK (visiting friends in the US) and wouldn't have the ability to place this order as I haven't seen my UK bank card since I arrived a few days ago (i.e., I have it but it hasn't been out of my wallet - just checked and it is still there).

I do find the entries in the Fidelity online account pages a bit baffling sometimes but this one has me completely stumped!

Any clues as to what this might be about?

InvestInPoker

No idea, but you gotta phone them in the morning, that much is obvious. Sounds strange.

jamesd

If you made a SIPP contribution a month or two ago and used it to buy that fund, they may now have just received the HMRC 25% basic rate tax relief in addition and may be applying it to the same fund you originally bought. We're at the right time of the month for HMRC tax relief to be arriving.

AlanP_2

It sounds to me that Jamesd has hit the nail on the head. With my Cavendish / Fidelity pension that's how it works.

Make investment, HMRC add 25% at some later date and it automatically gets invested for me.

jimjames

AlanP wrote: »

It sounds to me that Jamesd has hit the nail on the head. With my Cavendish / Fidelity pension that's how it works.

Make investment, HMRC add 25% at some later date and it automatically gets invested for me.

It's the same with other providers too.

When the tax relief is received it is automatically invested in the fund that the payment it relates to was invested in.

badger09

jimjames wrote: »

It's the same with other providers too.

When the tax relief is received it is automatically invested in the fund that the payment it relates to was invested in.

That's not my experience with HL.

My tax relief just sits there in SIPP capital account awaiting investment.

jj what happens if you've invested the SIPP contribution in several funds or bought several different shares? Does the tax relief payment get split between them?

Just curious.

jimjames

badger09 wrote: »

That's not my experience with HL.

My tax relief just sits there in SIPP capital account awaiting investment.

jj what happens if you've invested the SIPP contribution in several funds or bought several different shares? Does the tax relief payment get split between them?

Just curious.

How odd. My experience is with HL too.

I only ever use one fund at a time so don't know how it's split but would imagine in proportion to original investment.

badger09

jimjames wrote: »

How odd. My experience is with HL too.

I only ever use one fund at a time so don't know how it's split but would imagine in proportion to original investment.

Hmmm

From HL FAQs:
http://www.hl.co.uk/pensions/sipp/frequently-asked-questions

I wonder if it is because when I fund my SIPP (limited to £2880) I don't immediately invest it. I usually dither for a few weeks before deciding

HL probably assume 'daft old bat, better wait & see what she wants to do this time' :rotfl:

jimjames

Thanks for the link. I noticed there it says:

Where will the tax relief be invested?
If you make a contribution and give an instruction to invest your contribution in funds, the associated basic-rate tax relief will be invested in the same funds unless otherwise requested in writing. The tax relief will follow the original instruction even if you change how your contribution is invested before tax relief arrives. For other investments tax relief will be held as cash.

I assume this is the same with Fidelity, I guess it follows that if you don't invest the money immediately then it's added as cash to the SIPP so tax relief is then added as cash too.

badger09

Apologies for OP for derailing this thread

dunstonh

Providers that prefund (which is most of the traditional providers and the larger platforms) add tax relief immediately out of their own funds and invest it as instructed.

Those that do not pre-fund have two different ways of dealing with it. Either they wait until it arrives and put it in the cash account when it does or they use the original instruction to invest to buy additional investments.