AJ Bell custody charge

FDa65rdk
FDa65rdk Posts: 141 Forumite
Sixth Anniversary 100 Posts
edited 22 January 2023 at 12:42AM in Savings & investments
Hello
I've recently transferred my stocks and shares ISA to AJ Bell.
The balance on the account was a negative figure due to a custody charge - the AJ Bell fee for holding the investment.
I then deposited some funds as part of my annual ISA subscription but, after doing so, the amount was netted off against the custody charge.
Does this mean that it is not possible for investors to allocate the full £20000 ISA subscription to their investments because of the custody charge being deducted from it?
If so, this doesn't seem fair to me. I don't see why an annual ISA subscription should be used to pay brokers' fees.
Isn't it possible to set up a separate account (like with Hargreaves Lansdown) where investors can deposit funds to pay the brokers' fees so that the ISA allowance isn't touched?
Thanks.

Comments

  • DavidT67
    DavidT67 Posts: 496 Forumite
    Part of the Furniture 100 Posts Name Dropper
    Yes, you should have instructed AJ Bell to take platform fees from your general dealing account...


  • george4064
    george4064 Posts: 2,916 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    edited 22 January 2023 at 9:20AM
    This situation is the same for all investment platforms including HL, AJ Bell, Fidelity, Vanguard etc... 

    Yes, AJ Bell will let you pay the ISA custody charges from your dealing account. You just need to contact them and request it (I find they're very responsive to secure messages).

    Out of interest, I take it you transferred your investments from HL?
    "If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes” Warren Buffett

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  • Albermarle
    Albermarle Posts: 27,015 Forumite
    10,000 Posts Sixth Anniversary Name Dropper
    This situation is the same for all investment platforms including HL, AJ Bell, Fidelity, Vanguard etc... 

    Yes, AJ Bell will let you pay the ISA custody charges from your dealing account. You just need to contact them and request it (I find they're very responsive to secure messages).

    Out of interest, I take it you transferred your investments from HL?
    Fidelity have a separate ' cash management account' , which you can fund directly. Charges for ISA and SIPP are taken directly from this account ( if there is any money in it of course). No need to open a General Investment account.

    I think they are not the only platform doing this, but not sure.
  • FDa65rdk
    FDa65rdk Posts: 141 Forumite
    Sixth Anniversary 100 Posts
    edited 22 January 2023 at 7:43PM
    DavidT67 said:
    Yes, you should have instructed AJ Bell to take platform fees from your general dealing account...



    That's great, thanks! I've requested this.
    It seems odd that you have to email them to request this rather than having the option to do it online through the account settings but it should be sorted now.
  • FDa65rdk
    FDa65rdk Posts: 141 Forumite
    Sixth Anniversary 100 Posts
    This situation is the same for all investment platforms including HL, AJ Bell, Fidelity, Vanguard etc... 

    Yes, AJ Bell will let you pay the ISA custody charges from your dealing account. You just need to contact them and request it (I find they're very responsive to secure messages).

    Out of interest, I take it you transferred your investments from HL?

    Yes. I transferred from HL - I thought their fees were too expensive.
  • hoc
    hoc Posts: 585 Forumite
    Ninth Anniversary 500 Posts Name Dropper Photogenic
    This situation is the same for all investment platforms including HL, AJ Bell, Fidelity, Vanguard etc... 

    Yes, AJ Bell will let you pay the ISA custody charges from your dealing account. You just need to contact them and request it (I find they're very responsive to secure messages).

    Out of interest, I take it you transferred your investments from HL?

    Many can take it as DD from a current account and do not insist you open a dealing account.
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