Fidelity to shut windfall Isas
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Fidelity is to close its windfall Isa scheme after the number of accounts dropped from a peak of 200,000 to 34,000.
Windfall Isas came to prominence in 1997 when many investors received windfall shares from financial institutions, which demutualised and floated.
A number of groups have since closed their windfall Isas for these shares as investors transferred into other investments.
Investors can switch into any fund on Fidelity FundsNetwork or transfer out in cash to another Isa plan manager. Those who do not make a decision will have all their shares placed in the moneybuilder index fund.
The closing dates for the windfall Isas is October 1.
A Fidelity spokeswoman says: “Fidelity is to close its windfall Isa service due to declining demand. Several other fund companies had windfall Isa services and closed within a year or two of opening, we maintained our free service for many years.
“Fidelity is giving remaining customers a choice of what to do with their windfall Isa proceeds which preserve the tax benefits of their Isa account.”
Hargreaves Lansdown head of research Mark Dampier says: “These accounts have been closing as the likes of Alliance & Leicester, Bradford & Bingley and Halifax have all struggled or gone bust. They have been disastrous and people have found better options.”
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Readers' comments (21)
john evans | 22 Aug 2010 4:16 pm
Had a letter off Fidelity on sat morning about them closing down the windfall accounts i own,they have offered me two options but i only want my shares back,they say i cant have them back......Is that correct?
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Anonymous | 23 Aug 2010 4:13 pm
John
I share your sentiments and if Fidelity insist that they are right I will be withdrawing my entire portfolio from their management.
I think they may have seriously underestimated the investor effect of what they are trying to do.
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Anonymous | 23 Aug 2010 4:13 pm
John
I share your sentiments and if Fidelity insist that they are right I will be withdrawing my entire portfolio from their management.
I think they may have seriously underestimated the investor effect of what they are trying to do.
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Anonymous | 23 Aug 2010 4:54 pm
It makes a bit of a joke of the FSA's platform discussion paper and the issue of re-registration when Fidelity are not even offerring the option of re-reg of the shares to a different platform!
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Anonymous | 23 Aug 2010 4:56 pm
I've just phoned Fidelity who have been no help at all. We would like to keep our shares and feel blackmailed to stay with Fidelity. It's unlikely that we will do so. Is it legal?
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Steve | 23 Aug 2010 8:00 pm
Just had my letter and if I can stop them selling my shares, I too will be closing all accounts with them. I can find nothing in my paperwork from account opening to say I could not get my shares back - anyone any ideas?
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Anonymous | 23 Aug 2010 9:41 pm
I can see why Fidelity would want to close down these accounts, but it's the lack of options I object to: you can't keep the shares; you can only transfer all the funds into just one of their other Unit Trusts / OIECs. Too inflexible. Do we just accept these terms, or is anyone up for a fight ?
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Anonymous | 23 Aug 2010 10:52 pm
I also want my shares kept in Aviva especially as they are currently the subject of takeover talks and the shares are likely to rise in value. Is this legal what Fidelity are doing? As an American company, surely they must be subject to tighter controls.
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Anonymous | 24 Aug 2010 0:40 am
I am also unimpressed with this move i have a large portfolio that WILL be completely moved if this is the only action that is allowed. I wish to retain the shares i have.
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Rother | 24 Aug 2010 4:13 pm
Hi - i have Aviva shares and want to keep them, i had no joy when i rang Fidelity and would be prepared to fight them over this.
Would a representation to the Financial Onbudsman be in order.
i can post an email address if that would get the ball rolling
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