Fidelity Personal Investing has called for a ban on exit fees from all long term savings products in order to improve competition in the direct-to-consumer marketplace.
The platform joins Charles Stanley Direct in hitting out against "anti-competitive" exit fees, after the latter committed to waiving its own exit fees of £10 per line of stock or fund holding for one year.
Fidelity's analysis of its competitors shows Barclays commands the highest exit fee per fund when it comes to transferring funds from a Stocks and Shares ISA to another provider, at £30 per fund.
Fidelity Worldwide Investment head of personal investing Mark Till said: "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 Financial Conduct Authority (FCA) on this matter.
"Hitting customers with additional charges can make a significant dent in an investors' saving pot over the long run, something that is too often not taken into account, and we believe that exit fees should be banned from long term savings products. Until we see a ban on these charges we will offer to refund the cost of these charges to customers who move assets to Fidelity."
Fidelity says it has been actively lobbying the FCA on changing the rules. It currently covers the costs of personal investing customers who incurs an exit fee when moving assets to Fidelity, as long as the investment is at least £1,000, up to a maximum amount of £500 per customer.
Caring for children and elderly relatives
Similar to June 2007
Square Mile’s series of informal interviews
Fine reduced to £60,000
Two roles created