HL or Fidelity drawdown SIPP?

gravlax

Looking to change SIPP provider before moving to drawdown. Holding mostly ETFs, some shares, (no funds), pot may grow to about £1m. 

I want a platform that offers a separate drawdown account (separates crystallised and uncrystallised assets, allowing different investment strategy in each pot).

I've narrowed it down to HL and Fidelity. Would only move my SIPP, keeping other investments elsewhere.

Can anyone clarify, are Fidelity SIPP fees capped at £45 if you hold only ETFs, but would charge an additional 0.2% on any share holdings, while HL would be capped at £200 on both ETFs and shares?

HL appears clear "UK and overseas shares, investment trusts, exchange-traded funds, VCTs, gilts and bonds 0.45% capped at £200 per year" https://www.hl.co.uk/pensions/sipp/charges-and-interest-rates

Fidelity says the fee is 0.2% over £250,000, capped at £2,000 for £1m. But also says "For exchange-traded instruments, this portion of the fee is capped at £45." https://www.fidelity.co.uk/services/sipp/fees-and-charges/#tab-link

So does that mean if all £1m was held in ETFs, the fee is £45, not £2,000? But if you hold ETFs and shares, are the shares charged at an additional 0.2%?

As well as the fees clarification, any other pointers regarding these two for SIPP drawdown?

Albermarle

The £45 cap with Fidelity covers all 'exchange traded investments ' including shares , ETF's and Investment Trusts.
From the Fidelity website - 

• The portion of the fee you pay on exchange-traded investments (shares, exchange-traded funds (ETFs), etc.) within an ISA or SIPP is capped at £45.

The Fidelity normal platform fee is 0.35% , but if you have over £250K then it is 0.2% on the whole amount ( unlike with HL where the discounted platform charge does not include the first £250K )

So does that mean if all £1m was held in ETFs, the fee is £45, not £2,000? But if you hold ETFs and shares, are the shares charged at an additional 0.2%? No the only charges above £45 are for holding funds ( 0.2%) and for buying and selling 'exchange traded instruments ) at £10 a time.

Apart from splitting the pots , both platforms have almost no extra or hidden charges for anything .

Regarding comparing the platforms. Not a huge amount of difference AFAIK .

HL's website is a bit slicker and quicker and I think they have an even wider range of investments.
HL customer service is always said to be good and quick , although my experience of Fidelity responses is good . Usually get an e mail answer in less than 48 hours and not too long to wait if you call.
Fidelity offer regular cash back offers up to a £1000 for pension transfers , but the last one finished in January, so the next one will probably be in a few months.

Fermion

I've been with HL for a long time and went into partial drawdown about 6 years ago. I found HL very good at managing the timing of my initial large crystallisation. I agreed a date for the transaction but wanted to minimise the risk of any last minute large market downward adjustments so I  asked HL to only implement the transaction on the agreed date following a final telephone conversation which they did. Not sure about Fidelity, but many pension providers seem to implement transactions in their own good time which can  take weeks in some cases. (I've had bad experiences in the past consolidating SIPPs from other providers in my HL SIPP)

OldBeanz

I would not be quibbling over charges. HL have excellent customer service. 

gravlax

Albermarle said:

The £45 cap with Fidelity covers all 'exchange traded investments ' including shares , ETF's and Investment Trusts.
From the Fidelity website - 

• The portion of the fee you pay on exchange-traded investments (shares, exchange-traded funds (ETFs), etc.) within an ISA or SIPP is capped at £45.

The Fidelity normal platform fee is 0.35% , but if you have over £250K then it is 0.2% on the whole amount ( unlike with HL where the discounted platform charge does not include the first £250K )

So does that mean if all £1m was held in ETFs, the fee is £45, not £2,000? But if you hold ETFs and shares, are the shares charged at an additional 0.2%? No the only charges above £45 are for holding funds ( 0.2%) and for buying and selling 'exchange traded instruments ) at £10 a time.

Apart from splitting the pots , both platforms have almost no extra or hidden charges for anything .

Regarding comparing the platforms. Not a huge amount of difference AFAIK .

HL's website is a bit slicker and quicker and I think they have an even wider range of investments.
HL customer service is always said to be good and quick , although my experience of Fidelity responses is good . Usually get an e mail answer in less than 48 hours and not too long to wait if you call.
Fidelity offer regular cash back offers up to a £1000 for pension transfers , but the last one finished in January, so the next one will probably be in a few months.

Thanks. So if you hold just ETFs and shares (no funds) with you could hold a £1m SIPP for just £45 p.a. platform service fee with Fidelity or £200 p.a. with HL. 

I think Fidelity could be clearer in their pricing. Even on their Fees and Charges page it says:

Our service fee
This pays for everything we offer. It is typically 0.35%, but depending on how much money you hold in your personal accounts, it can be as little as 0.2% and is not charged on investments over £1m.
https://www.fidelity.co.uk/services/charges-fees/

On £1m that "as little as 0.2%" would be £2,000. But no mention of the fact it could actually be as little as £45. I wonder why?

Sterlingtimes

HL currently is getting big into ethical investment. I suspect that a younger team has taken over. Investment Times now goes straight to the bin.

Albermarle

On £1m that "as little as 0.2%" would be £2,000. But no mention of the fact it could actually be as little as £45. I wonder why?

Probably because they do not want to shout from the rooftops that you can have a One Million Pound Sipp for only £45. It can not be profitable for them and probably they would like to get rid of it . I think it is a legacy from the past and it seems only a relatively small number of bigger punters take advantage of it .