S&S ISA platform fees

bowlhead99

From the URL, you're in the "fundsnetwork-adv" part of the website, on the "fees-and-charging-adv" page, which is an area for people with ADVisers. The bold text in the middle of the page says to download the booklet or speak to your adviser. If you download the booklet, which you linked us to earlier, it's headed up as a guide to investing with them through an advisor.

At the top of the page you linked there's a menu tab headed Personal or Professional. If you go to the Personal tab you have a choice of "investing personally" or "investing with an adviser". Your web page is in the latter section.

BananaRepublic

bowlhead99 wrote: »

From the URL, you're in the "fundsnetwork-adv" part of the website, on the "fees-and-charging-adv" page, which is an area for people with ADVisers. The bold text in the middle of the page says to download the booklet or speak to your adviser. If you download the booklet, which you linked us to earlier, it's headed up as a guide to investing with them through an advisor.

At the top of the page you linked there's a menu tab headed Personal or Professional. If you go to the Personal tab you have a choice of "investing personally" or "investing with an adviser". Your web page is in the latter section.

Fair point, you are right. That is, in my view at least, confusing. I do not use an advisor, never have, and yet that is the page I was taken to when in my account and click on the charges menu item. Checking my online forms, I see that I pay 0.25%, so clearly I am in that pricing structure. It looks like a broker must have been down as an advisor, as I have always bought funds without financial advice (apart from company pensions of course).

madmollusc

Thank you all so much for valued and informed responses!
They've been invaluable and I will now start the process of transferring my ISA across to a different platform. I took my eye off the ball somewhat and have no doubt paid the price, literally!
I am an avid reader of the investment forum and find the information on here invaluable. Not being a particularly experienced investor I cannot thank you all enough for the comparisons provided!

BananaRepublic

bowlhead99 wrote: »

From the URL, you're in the "fundsnetwork-adv" part of the website, on the "fees-and-charging-adv" page, which is an area for people with ADVisers. The bold text in the middle of the page says to download the booklet or speak to your adviser. If you download the booklet, which you linked us to earlier, it's headed up as a guide to investing with them through an advisor.

At the top of the page you linked there's a menu tab headed Personal or Professional. If you go to the Personal tab you have a choice of "investing personally" or "investing with an adviser". Your web page is in the latter section.

I'm glad you pushed this point. Further investigation shows that some of my funds incur a 0.5% fee to the broker who originally sold the funds. That was a long time ago when fees were high, and brokers popped up, offering to refund the initial fee, and reduce the yearly fees. Now that clean funds are appearing, the fees are much easier to see i.e. not hidden from view. No doubt the fees WERE clearly stated at the time of purchase, and back then they were competitive. Time to transfer the funds to another platform.

bowlhead99

BananaRepublic wrote: »

Now that clean funds are appearing, the fees are much easier to see i.e. not hidden from view. No doubt the fees WERE clearly stated at the time of purchase, and back then they were competitive. Time to transfer the funds to another platform.

You would generally find that following the industry's "retail distribution review" and "platform review", the expensive dirty-priced funds are being auto-switched to clean-priced ones with effect from this April in line with FCA mandated rules.

At least, that's the case with mainstream DIY consumer platforms. For people who have bought direct with a manager (with or without the help of an advisor or broker) you may not be auto-switched because if you're not using a third party platform then there is no need to make the fees explicit; as a result my Dad still has a holding with a 1.8% OCF direct with a manager instead of 0.85 plus platform fee...

Needless to say he is now seeing the light and manually switching himself to move to a platform alongside his other holdings.

It may be worth checking with Fidelity if there is already any plan to close that particular fund class you're in and auto switch you to another clean one. If not, then yes, take them elsewhere as you shouldn't find it difficult to beat the Fidelity rates you quoted (I think you mentioned AJ Bell in other posts, who are cheaper).

BananaRepublic

bowlhead99 wrote: »

You would generally find that following the industry's "retail distribution review" and "platform review", the expensive dirty-priced funds are being auto-switched to clean-priced ones with effect from this April in line with FCA mandated rules.

At least, that's the case with mainstream DIY consumer platforms. For people who have bought direct with a manager (with or without the help of an advisor or broker) you may not be auto-switched because if you're not using a third party platform then there is no need to make the fees explicit; as a result my Dad still has a holding with a 1.8% OCF direct with a manager instead of 0.85 plus platform fee...

Needless to say he is now seeing the light and manually switching himself to move to a platform alongside his other holdings.

It may be worth checking with Fidelity if there is already any plan to close that particular fund class you're in and auto switch you to another clean one. If not, then yes, take them elsewhere as you shouldn't find it difficult to beat the Fidelity rates you quoted (I think you mentioned AJ Bell in other posts, who are cheaper).

Fidelity have switched all funds to clean ones as I believe is required. But because this is flushing out the 'hidden' fees, Torquil Clark (the broker) are now charging explicit management fees of 0.5%. I am surprised they can do this since they don't actually do anything at all to justify continued fees. I doubt Fidelity will let me switch away from TQ, but as you indicate, AJ Bell are cheaper, so there is no reason I can see not to decamp. One fund will have to wait as it is a unit trust.

Something makes me think Fidelity might lose a fair bit of custom as a result of these clean fund switches once people see the 'hidden' fees. I feel cheesed off, but you should see my filing boxes filled with financial documents ... I recently found some expired warrants. Hi ho.