Fidelity SIPP 'Service Fee'

vienly

Cus said:

Albermarle said:

The 0.35% fee applies to all investments, but for ETFs; ITs and shares it is capped at £90 per year.

There is no cap for investments in OEIC funds. However buying and selling of these is free, whilst the others have a £7.50 trading fee for each buy and sell.

Just in case it's relevant to anyone reading, actually there is a cap of £2k a year service fee for OEIC funds in a sipp, its a 0.2% service fee for portfolios above 250k and up to 1mn, and anything over 1mn is zero additional fee

Thanks - Just to be clear, even with a portfolio of above £250k - £1m and you only invest in ETF, it will only be capped at £90 a year correct?

Albermarle

vienly said:

Cus said:

Albermarle said:

The 0.35% fee applies to all investments, but for ETFs; ITs and shares it is capped at £90 per year.

There is no cap for investments in OEIC funds. However buying and selling of these is free, whilst the others have a £7.50 trading fee for each buy and sell.

Just in case it's relevant to anyone reading, actually there is a cap of £2k a year service fee for OEIC funds in a sipp, its a 0.2% service fee for portfolios above 250k and up to 1mn, and anything over 1mn is zero additional fee

Thanks - Just to be clear, even with a portfolio of above £250k - £1m and you only invest in ETF, it will only be capped at £90 a year correct?

Yes that is correct and the £90 is actually a platform cap, so if you had a SIPP and a S&S ISA with only ETFs in both ( or individual shares, or Investment Trusts) the max you pay for both is £90 in total.
It is a bit of a crazy low cap ( used to be only £45) so possibly one day it will be increased.

Albermarle

Cus said:

Double check that with them, their site says that you don't pay a service fee for holding ETF's in an 'investment account', which appears as a separate type of account to a sipp or ISA so the worry would be that the 0.35% is charged for ETF's in a sipp, but not in a regular investment account.  Especially as the sipp fees section has no carve out of fees for ETF's written anywhere..

As explained in my previous post, the 0.35% is charged on ETFs in a SIPP, but the charge is capped at £90 max.

Albermarle

Cus said:

gm0 said:

I have a SIPP in drawdown.  Fidelity.  I pay 0.07% service fees for the mix of ETF and funds I use. (Not all the things I want are in ETF format).  

Important - the fairly regular Fidelity cashback incentive to transfer in is worth it.  I got nearly 3 years of fees - platform, trade etc. out of it.  Missing it - is not sensible.  Autumn/Spring i think is typical.

I'm thinking of moving all of my sipps into my fidelity sipp as it's a protected pension age of 55, so this thread is of interest to me. After looking at the detailed fee document, etf( and IT) investments(edit: in a sipp, but in a non sipp/ISA account are zero for some reason) are capped at £90 a year, where as other investments like funds appear to have a 0.35% service fee up to a certain size of portfolio and a few other carve outs.

So £100k in a sipp of funds you pay £350 a year, but all in ETF's it's £90.  Wonder why?

I have asked the same question before on the forum but have never received a fully satisfactory/logical answer.
It seems to be a mixture of ;
1) Most pension investors traditionally used OEICS ( or unit trusts as they used to be known), so possibly this cap was to keep a small band of higher value, more savvy investors on board. ETFs in particular were a niche product until recently.
2) Their bigger/nearest competitor ( HL) have similar ( but higher caps)
3) They do make some extra money as the ETFs have to be traded at £7.50 a pop. ( OEICS are free to trade)
4) They are prepared to sacrifice profit for market share?
5 ) Some investors ( including me by the way) will have a mixture of investments ( Popular multi asset funds are all OEICs in the UK) so I pay more than £90 but a lot less than 0.35% . It makes the platform more competitive for bigger funds than it otherwise would be, compared to II for example. 

DT2001

I have a SIPP with Fidelity with just ETFs and can confirm I am paying £7.50 p.m.
I hold an S&S ISA with HL holding just ETFs and Investment Trusts and pay £45 p.a. (Reduced for the first 6 months by 40% from a promotion at the time of transferring). 

Service has been very good so far and website/Apps work well for my requirements 

Albermarle

DT2001 said:

I have a SIPP with Fidelity with just ETFs and can confirm I am paying £7.50 p.m.
I hold an S&S ISA with HL holding just ETFs and Investment Trusts and pay £45 p.a. (Reduced for the first 6 months by 40% from a promotion at the time of transferring). 

Service has been very good so far and website/Apps work well for my requirements 

They both offer good service in my experience.

One difference with the fees is that if you had a SIPP and an ISA together ( holding ETFs only).
Fidelity would be £90 pa
HL would be £245 pa .