ATS First Steps a/c after II take over

koru

Has anyone found out what happens to Alliance Trust Savings First Steps IDA accounts once Interactive Investor takes over in October?

Specifically, is there still a lower fee? And is it still possible to hold the account in Bare Trust (so it is taxable in the hands of the child, not the parent acting as trustee)?

koru

Ah, just found the answer. If you don't already have an II Investor Account, the First Steps account will be converted to one, so your fees will triple from £3.33 to £9.99 per month.

If the parent already has an II account, extra IDA accounts are no extra charge. I assume the First Steps account will become an extra IDA.

Source: https://www.excitingfuture.co.uk/understanding-your-new-service-guide.pdf

Page 10 of that doc says:
"If you hold a First Steps Account, it will move over as a Trading Account in your name and will continue to be designated in the child’s name."
That sounds like a bare trust will continue to be applied.

koru

Has anyone seen how they are going to deal with clients who already have II accounts? Will they automatically link a transferred IDA to an existing account, so that they don't charge for it as a separate Investor Account?