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A Fidelity improvement?

If Im understanding correctly , Fidelity is allowing us to have a cash management account  from which to pay fees , whih will help protect tax wrapped Isas  Opened automatically for us after Sept 2020.
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  • Albermarle
    Albermarle Posts: 25,919 Forumite
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    Yes that is correct. When ISA and Sipp fees are due they will look into the cash management account first, then if not enough there , then cash account within the ISA/SIPP next . If still not enough they will sell a part of your biggest holding.
    You can fund the cash management account directly by debit card etc 
    I already had this account anyway as they used it to pay cashback on a pension transfer.
  • Sea_Shell
    Sea_Shell Posts: 9,870 Forumite
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    edited 28 July 2020 at 6:47AM
    I've already got a Cash Management account, which up to now was NOT able to take the ISA fees, I asked them about this about a year ago, so we had to leave some cash uninvested in the ISA.

    Are you basically saying that this is now changing, and they ARE going to look to take cash from the CMA first.    
    How's it going, AKA, Nutwatch? - 12 month spends to date = 2.56% of current retirement "pot" (as at end January 2025)
  • cloud_dog
    cloud_dog Posts: 6,248 Forumite
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    edited 28 July 2020 at 8:07AM
    Yes, that is correct.

    They are also changing the payment date to be the first of the month from September.  Without re-reading the notice I'm unsure if the use of the CMA coincides with that date.
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • Sea_Shell
    Sea_Shell Posts: 9,870 Forumite
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    We pay an advisor fee and a service fee, both as a percentage of investments.  Currently taken from ISA cash.

    We don't pay their Investor fee.

    So it reads to me like they'll take the service fee from the CMA, but not the Advisor fee??

    We used Cavendish when we set our ISAs up.
    How's it going, AKA, Nutwatch? - 12 month spends to date = 2.56% of current retirement "pot" (as at end January 2025)
  • Albermarle
    Albermarle Posts: 25,919 Forumite
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    Sea_Shell said:
    We pay an advisor fee and a service fee, both as a percentage of investments.  Currently taken from ISA cash.

    We don't pay their Investor fee.

    So it reads to me like they'll take the service fee from the CMA, but not the Advisor fee??

    We used Cavendish when we set our ISAs up.
    Some of the charging structure is already different if you invest via Cavendish rather than going direct , so this could also be different ?
  • dunroving
    dunroving Posts: 1,881 Forumite
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    Would that also apply to SIPP charges? 
    (Nearly) dunroving
  • Voyager2002
    Voyager2002 Posts: 15,873 Forumite
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    dunroving said:
    Would that also apply to SIPP charges? 
    I understand that it will apply to SIPP charges (I have a Fidelity SIPP but not an ISA with them). Although the advantages are rather less for a SIPP than for an ISA.

  • Albermarle
    Albermarle Posts: 25,919 Forumite
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    dunroving said:
    Would that also apply to SIPP charges? 
    You should have received a letter about the change , or it will be in the documents section of the website.
  • sparky0138
    sparky0138 Posts: 553 Forumite
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    Can somebody please confirm, does this mean that any money put into the CMA for fees, does NOT count towards the amount you can pay yearly into a SIPP or ISA?
  • sausage_time
    sausage_time Posts: 1,181 Ambassador
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    I'd say so.  From their letter:
    2) What are the benefits of a Cash Management Account?
    There are two main benefits of a Cash Management Account:
    •  It helps protect your tax-wrapped ISA and SIPP investments, as it will allow you to pay service fees from a separate cash holding.
    •  It also allows you to move money between your Fidelity accounts making it easier for you to manage your investments.
    I prefer the Vanguard approach where ISA charges are take by Direct Debit.   But it's a step in the right direction.

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