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Finally moving the SIPP

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  • ThrugelmirThrugelmir Forumite
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    cloud_dog wrote: »
    So yesterday I made three investments in to ITs

    On what basis did you place the trades?
    "The human understanding when it has once adopted an opinion ... draws all things else to support and agree with it." - Francis Bacon (1561 – 1626)
  • cloud_dogcloud_dog Forumite
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    Thrugelmir wrote: »
    On what basis did you place the trades?
    Do you mean T3 or something else?

    Had cash to invest and the carnage(ish) on Wednesday presented an opportunity to buy trusts I wanted to invest in at an improved price. What wasn't to like.

    I just didn't have any sort of indication that that was how Fidelity processed stock type investments. I just like transparency / clarity. I've never encountered that situation for stock type investments in all my years and all the various platforms and wrappers I (we) have used.

    It is possible that the Fidelity site does indeed confirm that is how they process these transactions but I have not found it. I know that is how it is managed for OIECs / UTs.
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • MK62MK62 Forumite
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    That doesn't sound good......one of the advantages of ITs over UT/OEICs is live price trading (ie knowing exactly what price you buy and sell at), rather than having to deal under the forward pricing model used by UT/OEICs.


    Did they charge you for this trade as well?
  • cloud_dogcloud_dog Forumite
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    MK62 wrote: »
    That doesn't sound good......one of the advantages of ITs over UT/OEICs is live price trading (ie knowing exactly what price you buy and sell at), rather than having to deal under the forward pricing model used by UT/OEICs.


    Did they charge you for this trade as well?
    Oh yes.

    Fidelity have (currently) a transaction charge of 0.1% for stock type transactions. They are moving towards a flat £10 per trade (£1.50 for regular transactions) soon but I do not know / cannot see a defined date for that. The problem I have is that without asking them, when they introduce the £10 transaction fee will that also move the transaction process in to the 'live' price contract model or retain the existing 'batching' model.

    I have raised my lack of awareness of the situation with Fidelity and I'll see what they say. I will also need to confirm what is the process once they change their pricing / transaction model (for ITs, stocks, ETFs).
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • MK62MK62 Forumite
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    Well, if ITs form part of your core strategy it might be time to find a more suitable platform.....AFAIK, Fidelity do not charge exit fees.
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  • cloud_dogcloud_dog Forumite
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    Hi

    (here we go again)

    I need some feedback on Fidelity charging structure, for those of you who invest using ITs/ETFs/stocks in a Fidelity SIPP (not GIA or ISA).

    After my recent (October) experience when purchasing ITs and the subsequent service / management charge applied, I logged my 'frustration' of the situation. Fidelity have now come back to me with some answers to my queries, and I really need some feedback on their responses.

    I believed that if you invested in ITs/ETFs/stocks in a Fidelity SIPP then the management/service charge would be £45pa. I also understand that they charge the standard 0.35% on cash held in the account (as well as OIECs), plus they paid a small amount of interest on the cash which basically negated the charges (give or take a few pennies). I am also aware that they are changing their charging structure in the near future (mentioned previously).

    But, as of today I am informed that in the Fidelity SIPP all investments are charged at the 0.35% rate. And, I need some confirmation. StellaN, are you there... as I believe you are invested similarly.

    They have again confirmed that when the SIPP account is upgraded then live pricing will apply....when...Obviously I have asked that question.
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • ArchBairArchBair Forumite
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    cloud_dog wrote: »

    But, as of today I am informed that in the Fidelity SIPP all investments are charged at the 0.35% rate. And, I need some confirmation. StellaN, are you there... as I believe you are invested similarly..

    I hold a Fidelity SIPP so I believe you have been misinformed and given the wrong information. If you hold IT's or ETF's it is capped at £45 per annum. This is stated very clearly in their terms and conditions under the charges section. If you need to clarify this then telephone them to confirm this because they have a freephone service. I know my charges are capped at £45 but we really need the live pricing upgrade which has been promised soon (I hope)!
  • cloud_dogcloud_dog Forumite
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    ArchBair wrote: »
    I hold a Fidelity SIPP so I believe you have been misinformed and given the wrong information. If you hold IT's or ETF's it is capped at £45 per annum. This is stated very clearly in their terms and conditions under the charges section. If you need to clarify this then telephone them to confirm this because they have a freephone service. I know my charges are capped at £45 but we really need the live pricing upgrade which has been promised soon (I hope)!
    Interesting. I wonder if holding cash is overriding the charging fee to make it 0.35%, although that would be strange as I would envisage always having some degree of cash, even if only or a relatively short period whilst I allow divi's to accumulate.

    Thanks for confirming, looks like I/OH will have to speak with them.
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • ArchBairArchBair Forumite
    153 posts
    cloud_dog wrote: »
    Interesting. I wonder if holding cash is overriding the charging fee to make it 0.35%, although that would be strange as I would envisage always having some degree of cash, even if only or a relatively short period whilst I allow divi's to accumulate.

    Thanks for confirming, looks like I/OH will have to speak with them.

    I hope this is of interest to you. I also received a letter/mailshot from Fidelity informing me that they would be moving my SIPP over to their new platform in a month or so. When this happens they will not charge anything for holding cash in a SIPP, however they also will not be paying any interest. The new platform will also offer live pricing so let's hope its not too long!
  • cloud_dogcloud_dog Forumite
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    Yeah, I was aware of the revised pricing structure. It's good to hear that you've received confirmation giving you a timeline for the changeover. No such communication for the OH account. Hopefully not much longer Rodders....
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
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