Fidelity or HL for ETF Only SIPP

whats

I have a 100% ETF/IT portfolio with Fidelity, and they have just migrated me over to the new system.
What they didn't tell me was the £1.50 regular investment is for new money. So the 40K i have sat in cash in the SIPP which incur £10 dealing fee.


As I had sector based portfolio I'm not having to way up my options.


To add new money via DD looks pretty straightforward if its an individual paying in. To have a company paying in requires two forms to be downloaded/printed/posted (employer/employee). And it appears if you want to alter this (say choosing different funds) another form to be downloaded/printed/posted.

cloud_dog

I have already offered my services to them in order to help them make changes that will have the maximum positive benefit

One of which was that they should have separated out the purchasing process in to a two-step process (like other providers have), allowing you to set up a regular payment for £X and that together with tax-relief is added to your cash balance. The RI can be set up to take the money from the cash balance. It really isn't difficult....well perhaps it is for them

Interestingly after my OH SIPP account was 'migrated' the first RI was the tax-relief purchase and somehow they managed to deduct the £10 dealing fee rather than the £1.50 RI dealing fee so, the OH has ended up with a whole £8.50 less invested but Fidelity have noticed the error and have refunded £10.

Bless their cotton socks

cloud_dog

whats wrote: »

I have a 100% ETF/IT portfolio with Fidelity, and they have just migrated me over to the new system.
What they didn't tell me was the £1.50 regular investment is for new money. So the 40K i have sat in cash in the SIPP which incur £10 dealing fee.

Sooo, you are financially better off? Assuming you make less than 4 purchases, and no better/worse off if you make 4 x £10k purchases. The old cost would be 0.1%, so £40 to invest £40k.

Obviously, if you wanted to make 20 x £2k purchases then, yes you would be significantly worse off.

whats

Even if FID decided to do allow RP from cash I think it would take them many months to develop it.
I had hoped to make investments of £1500 or more to be same or better off. I've got 40K cash with FID and was going to add another £38K to max this years allowance.
But having 2nd thoughts...


I rung them up and the chap submitted the feedback, if enough people do it they may add the feature.

cloud_dog

whats wrote: »

I had hoped to make investments of £1500 or more to be same or better off. I've got 40K cash with FID and was going to add another £38K to max this years allowance.

I'm a little unsure what you mean wrt the £1500? you'd invest approx £1500 per investment and end up with approx 50 investment holdings? I must be missing something, that doesn't seem 'sensible'?

Alexland

cloud_dog wrote: »

The old cost would be 0.1%, so £40 to invest £40k.

Fidelity charges website link below still has 0.1% as the fee for buying or selling an IT or ETF within their SIPP. As they are now opening new accounts on the new system is this pricing detail no longer valid?

https://www.fidelity.co.uk/services/charges-fees/#227831

Alex

Albermarle

There seems to be two sets of Terms and Conditions for the SIPP.
The new one 'Doing business with Fidelity' is for new investors ( since yesterday ) or current investors who have received a letter saying they are on the new system .
Although regardless of the above anyone older than 53 is still on the old system.
I think in the new system you now have a £10 dealing charge for IT's/ETF's( and can hold individual shares ) , whilst in the old system the 0.1% presumably still applies .
Confusing !

whats

When I phoned FID they said most SIPP customers had been migrated to the new system, and agreed with me the web site was misleading as the 0.1% only applies to the few people on the old product.

whats wrote: »

I had hoped to make investments of £1500 or more to be same or better off

Previously a buy order for £1500 would cost £1.50 in fees. So I was hoping to do a RP (set up / then cancel) which would cost £1.50 as long as buy order was for £1500 or greater I would be better of.
But as mentioned I can't set up a RP linked to cash!