In this section
Here we detail two ways to help clients make the most of their ISA allowances.
Encourage clients to use their ISA allowances early
All clients receive a fresh £20,000 ISA allowance at the beginning of every new tax year (£9,000 for Junior ISAs). And the ones that invest early put time on their side – their investments are able to grow within a tax-efficient environment for that much longer.
Of course, the decision on when to invest may not simply be about time – it may depend on a client’s view on the prospects for the markets. For those that believe markets are set for better days ahead, investing a lump sum early in the tax year could be an attractive option. For clients still worried about volatility, cash options and phasing can be used to secure an ISA allowance. Even clients linked to model portfolios can make a cash investment through opening a new (separate) account.
The good news is, our ISA Contribution report allows you to see which clients are yet to open an ISA in the current tax year. It also identifies any unwrapped collectives which could be moved to an ISA. What’s more, the report generates data for your targeted marketing mailings.
- Run your ISA Contribution report – select 'Firm' from the left-hand menu of our Client Management facility followed by 'Reporting Services'. You'll then be able to select the report which will be ready within 24 hours.
You can find out more about the ISA Contribution report in our user guide.
If you need more help with using our reports more generally, you may find it useful to download our Reporting Services guide.
- Once you’ve received your report, you’ll then have the ability to manage your data as required. You can then merge the data with your customer approach letter.
If you would like to make use of our suggested ISA marketing letter/email, simply download our template.
Maximise client assets held within an ISA when paying fees
In order to maximise client assets within a tax-efficient environment, it may be appropriate to review the fee disinvestment hierarchy for Investment Accounts and ISA accounts. Fees relating to an ISA can be paid from a client’s Cash Management Account and, in turn, you can set a fee disinvestment hierarchy that targets the sole-named Investment Account (you should consider any capital gains tax implications before selling investments within an Investment Account). If fees are set to be paid from a Cash Management Account, the client can easily make top ups themselves through their online account or via the Fidelity App.
Finding out where client account fees are taken from is easy. Our Adviser Fee Rates report identifies where deductions come from and it also shows account valuations. This enables you to quickly identify where a change to a client’s fee disinvestment hierarchy could potentially be made.
- Run your Adviser Fees Rates report – select 'Firm' from the left-hand menu of our Client Management facility followed by 'Reporting Services'. You'll then be able to select the report which will be ready within 24 hours.
If you need more help with using our reports, you may find it useful to download our Reporting Services guide.
- Where appropriate, change the fee disinvestment hierarchy applied to client accounts. To do this, click ‘View details’ within the client summary page to view the current fee set up. From the ‘Actions’ tab, select ‘Manage fee funding’ where you can change the payments from the ISA/Investment Account to Cash Management Account.
Importahnt information - The value of investments and the income from them, can go down as well as up, so clients may get back less than they invest.