Important information: Dealing issue notification

Update as at 4 June 2024

Duplicate May Service Fee:

We have successfully completed the reversal of almost all the service fees that were collected in error.  However, we have identified a number of accounts where the incorrect service fee was being funded from cash. In these cases, the fee completed pricing overnight on 22 May and this meant that we have been unable to reverse the duplicate May fee collection.

Due to the close proximity of the June service fee run, we have decided to rectify these accounts using a different method.  If no service fee reversal is visible on a customer’s account in May, it means they were impacted by the cash issue, and we will use the following process to correct each account:

• The second May 2024 service fee will remain in place on the account
• We will exclude the account from the June 2024 fee run. The next service fee payable will be in July 2024
• This effectively means the June fee was deducted almost 2 weeks early. We will calculate the cash interest each customer has lost due to the fee being collected early and will make a small interest accrual adjustment to each impacted account. This will ensure customers are not disadvantaged because of the fee being taken early.

None of the service fee corrections will generate correspondence directly to customers.  

Late priced non-service fee deals:

For the normal platform deals that priced a day later than expected (23 May instead of 22 May), we have completed calculations and corrections (where applicable) for all impacted buy and sell deals. We are in the process of completing the remaining calculations for Switches, Rebalances, Bed & ISA, and trades on pension accounts. We expect to have these completed in the next day or so.

Clients will be issued with a Confirmation of Transaction document where it has been necessary to apply a correction to their account(s) as a result of the late pricing.

Update as at 28 May 2024

• 99% of all service fee deals that were collected in error last week have now been reversed and customer accounts are now back in the same position as they were prior to the error taking place.
• Work continues on the remaining impacted accounts and we expect to have these reversed later this week.

For non-service fee related trades that priced a day later than expected (23 May instead of 22 May), data has been passed to our corrections team who are in the process of reviewing each individual deal to establish if customers were disadvantaged by the later trades. Where customers were disadvantaged, we will be correcting their accounts to reflect the prices available on 22 May. No action will be taken in instances where customers are advantaged by the later deal.

Please note that we will be required to issue a Confirmation of Transaction document to customers that have a correction applied to their account(s).

Update as at 23 May 2024

An error in processing Fidelity’s Service Fees was identified on the morning of the 22 May. We have incorrectly initiated service fee deductions that we would normally collect on or after the 1 June on the 22 May. 

Clients have been affected as follows:

• Where clients had enough money in their Cash Account to pay the fee, the fee has been deducted
• Where we needed to initiate a sell from an exchange-traded product to fund the fee, we have instructed and priced the transaction
• Other fee disinvestments have not been processed. 

In addition, other instructions submitted to us between 11:00am on the 21 May and 10:20am on the 22 May, or instructions that would normally have priced on the 22 May, have not been priced as usual and will be priced on the 23 May.

What we are doing about this:
 

• We plan to reverse the service fees already taken, placing the fee value back into clients’ Cash Accounts
• Where a disinvestment has been made for a service fee deduction, we will deal correct the account to ensure clients are not disadvantaged, including reimbursement of dealing fees if necessary
• Similarly, for instructions that were submitted before the usual cut off that were not processed in time, we will deal correct the accounts to ensure clients are not disadvantaged.