FRISA wrapper

Wrescombe

I have two online FRISAs with the Post Office expiring on different dates. The Post Office say that because they are under a 'wrapper' I must transfer both. There will be a penalty charge. They referred me to the T & Cs when I protested about their restrictive practice. Is their version of a 'wrapper' system an HMRC requirement? I have lodged a complaint but has anyone had experience of this?

eskbanker

It's not an HMRC requirement but comes down to the way they've chosen to structure their product(s), which is indeed explained in the Ts & Cs, i.e. they're not two independent ISAs in the way that they would be with most other providers.  Do you have the option of shifting the first one into their easy access (sub)product on maturity while waiting for the second to mature?

Wrescombe

Thanks for your reply. I am checking out what rate is available from the PO on their easy access account. Right now the matured funds are in a holding account at 0.01%!!!  T&Cs are notoriously difficult to grasp particularly when buying an on-line financial product. I have never come across a wrapper system before and I have had multiple ISA products with many providers in the past. Your comment and my past experience leads me to think that a wrapper arrangement is so unusual as to warrant special mention outside the T&Cs pointing out the restriction. Indeed,I think it is a restrictive practice and plan to take it up with the PO through their complaints system.

isasmurf

Wrescombe said:

Thanks for your reply. I am checking out what rate is available from the PO on their easy access account. Right now the matured funds are in a holding account at 0.01%!!!  T&Cs are notoriously difficult to grasp particularly when buying an on-line financial product. I have never come across a wrapper system before and I have had multiple ISA products with many providers in the past. Your comment and my past experience leads me to think that a wrapper arrangement is so unusual as to warrant special mention outside the T&Cs pointing out the restriction. Indeed,I think it is a restrictive practice and plan to take it up with the PO through their complaints system.

Nationwide, Ford Money, Paragon, Charter, Newcastle BS, Aldermore and Kent Reliance to name a few that operate portfolio cash ISAs (what PO are calling a wrapper).

masonic

isasmurf said:

Wrescombe said:

Thanks for your reply. I am checking out what rate is available from the PO on their easy access account. Right now the matured funds are in a holding account at 0.01%!!!  T&Cs are notoriously difficult to grasp particularly when buying an on-line financial product. I have never come across a wrapper system before and I have had multiple ISA products with many providers in the past. Your comment and my past experience leads me to think that a wrapper arrangement is so unusual as to warrant special mention outside the T&Cs pointing out the restriction. Indeed,I think it is a restrictive practice and plan to take it up with the PO through their complaints system.

Nationwide, Ford Money, Paragon, Charter, Newcastle BS, Aldermore and Kent Reliance to name a few that operate portfolio cash ISAs (what PO are calling a wrapper).

But do any of those not support partial transfers of previous year subscriptions, which is the issue the OP apparently has?

badger09

Wrescombe said:

I have two online FRISAs with the Post Office expiring on different dates. The Post Office say that because they are under a 'wrapper' I must transfer both. There will be a penalty charge. They referred me to the T & Cs when I protested about their restrictive practice. Is their version of a 'wrapper' system an HMRC requirement? I have lodged a complaint but has anyone had experience of this?

Have you paid new money (ie not a transfer from another ISA) since 6th April 2020, into both of the Post Office ISA's?

Wrescombe

No. I have invested my 2020/21 allowance elsewhere.