Fidelity is lobbying the FCA to ban charges for transferring assets off investment platforms.
Exit fees are typically charged on direct platforms.
Both Fidelity and ATS offer to compensate clients moving onto their respective platforms if they are charged exit fees by a ceding platform.
Fidelity Worldwide Investment head of personal investing Mark Till says: “For the typical Isa investor this year, we are seeing some of our competitors levy exit charges that amount to in excess of 1 per cent of their portfolio value. This can add significantly to the headline cost being quoted by a provider.
“Customers are now telling us this is becoming a material issue for them when they look to move between providers. Not only are charges high, but the mechanisms for collecting these fees are creating further delays in transfers.
“We would like to see an outright ban on these types of charges, as we believe they are creating meaningful barriers to customers moving assets. We continue to talk to the FCA on this matter. Hitting customers with additional charges can make a significant dent in an investor’s saving pot over the long run, something that is too often not taken into account, and we believe exit fees should be banned from long-term savings products.”