Share dealing FAQs

Making an investment with us

What is online share dealing?

Share dealing is when you buy or sell shares in a public limited company on a recognised stock exchange. You can do this at any time the exchange is open. When you buy a share you become one of the company’s owners and you may be entitled to a share of any profits it makes. If the company does well, your shares may go up in value because more people want to have a stake in the company. But if the company doesn’t do well, the value of your shares may fall. Our share dealing service will also be offering other types investments, in addition to company shares. One of the main types will be bonds, which are loans to a large organisation. As our service develops, we will enable you to buy UK government bonds, known as gilts, as well as corporate bonds.

Does Fidelity provide a certificated share dealing service?

No. Our service is primarily an online service.But if you have paper share certificates, you can add them to your online account. Find out more 

How much money do I need to start investing?

You can start investing with as little as £50 each month or with £1,000 as a lump sum.

How can I open a share dealing account?

Our service is primarily online and there are different accounts you can open to trade in shares.

You can choose from an Investment Account, Investment ISA or Junior ISA. The money you pay into the account, when you set it up, will be held as cash until you’re ready to trade.

You can choose to invest any or all of your ISA allowance or the money in your Investment Account, in a wide range of funds or shares. If you’re unsure where to invest, speak to an authorised financial adviser.

Please see our wide range of investments on our Investment Finder.

Where can I view and access my online share dealing account?

If you’re an existing customer and have already registered for online services, you can log in to view your online share dealing account.

If you’re a new customer, you can sign up to our secure online account management service and view an up-to-date valuation of your investments at any time.

Find details on setting up your online account

What are the online share dealing fees and charges?

Our share dealing service is primarily an online service. We charge a flat fee of just £10 for buying or selling shares online within an ISA or Investment Account and only £1.50 for dividend re-investments and regular savings plan payments.

In exceptional circumstances, you will be allowed to trade over the phone and the fee will be £30 for each order.

In most cases, when you buy UK shares, or shares in a foreign company with a share register in the UK, regulatory charges such as Stamp Duty Reserve Tax and PTM levy may apply.

See details on charging 

What accounts are available for share dealing?

When you invest your money with us, you’ll need to select an account to house your savings. We offer a number of different types of account and each one has different features. The right one for you will depend on, for example, what you’re saving for and for how long. You don’t have to have just one type of account – you can invest your money in as many different accounts as you like.

The accounts you can choose from for share dealing are:

Fidelity Investment ISA – a Stocks and Shares ISA (Individual Savings Account) is simply a tax-efficient way to save or invest. You can invest in a wide range of funds and exchange traded instruments such as shares, investment trusts, ETFs. You can also hold cash within an ISA. You’re limited to how much you can save in an ISA each year. The standard ISA rules apply and the eligibility to invest in an ISA depends on your personal circumstances. Find out more about the ISA allowance.

Tax treatment depends on individual circumstances and all tax rules may change in the future.

Fidelity Junior ISA – this Stocks and Shares ISA provides a tax-efficient way to save on behalf of a child, like your own children or grandchildren (must be resident in the UK). Any money you invest in a Junior ISA is regarded as the child’s money and they cannot access the money until they’re 18 years old. Junior ISAs automatically become adult ISAs once the child reaches 18.

It is not possible to hold both a Junior ISA and a Child Trust Fund (CTF). If your child was born between 1 September 2002 and 2 January 2011 the Government would have automatically opened a CTF on your child’s behalf. If your child holds a CTF they can transfer the investment into a Junior ISA. Please note that Fidelity does not allow for CTF transfers into a Junior ISA. Parents or guardians can open the Junior ISA and manage the account but the money belongs to the child and the investment is locked away until the child reaches 18 years old.

Fidelity Investment Account – you can use an Investment Account for all your investments held outside of an ISA or pension. So, if you’ve used up your annual ISA allowance, for instance, this could be an option for you. Please note: different tax rules apply when investing outside of an ISA.

 

Am I able to open an account?

Yes, given you’re a UK resident living in the UK and are 18 years of age or over. You can also open an account if you’re a member of British Forces living overseas.

Can I open an account in joint names?

Yes, you’ll be able to open an Investment Account with more than one account holder and both account holders are jointly responsible and liable for the account. Find out more about our Investment Account

What kind of shares and stocks are available?

We provide access to a wide selection of investments that can meet a broad range of needs.

These generally fall into two categories – ‘pooled’ or ‘collective’ investments and exchange traded instruments such as shares, investment trusts, ETFs.

Pooled (collective) investments – as the name suggests, these investments allow you and other investors to pool your money together to form a large sum. A professional manager will then use this money to invest in a wide range of shares or bonds on your behalf. The manager uses their knowledge and experience to help grow your money or to provide you with an income over time. They’ll typically make all the investment decisions – choosing when to buy and sell individual shares and bonds within the fund.

Exchange traded instruments (ETIs) – These are investments that are openly traded on a stock exchange, which means you can buy and sell them through Fidelity.

There are many different types of ETI:

  • Company shares (equities) – shares are individual securities and allow you to own part of a company or financial asset. While owning shares in a business does not mean you have any direct control over the day-to-day operations of the business, being a shareholder does entitle you and other shareholders to a proportional share of any profits.
  • Exchange traded funds (ETFs) and exchange traded commodities (ETCs) – ETFs and ETCs combine the benefits of investment funds and shares, offering you diversified, cost-effective and transparent access to global investment markets. They typically track the performance of a stock market index or commodity. They’re bought and sold much like shares and are sometimes known as ‘exchange traded products’ (ETPs).
  • Investment trusts – these are pooled funds set up as public limited companies (PLCs) and their shares are listed on a stock exchange. The trust’s investments are chosen and managed by an experienced team who spread your money across a wide selection of investments. Another difference from funds is that they have a fixed number of shares and so they are sometimes referred to as ‘closed-ended funds’.

Coming soon

  • CREST Depository Interests (CDIs) – these are UK securities, issued by CREST, which are designed to represent a company share traded on an overseas stock market. They offer a way for you to buy and sell a number of non-UK stocks in sterling.
  • Corporate bonds and UK government bonds (Gilts) – in simple terms, a bond is a type of loan. When you buy one, you’re effectively lending the issuer your money and they pay you interest in return. At the end of a bond’s term, the face value of the bond will be paid to you, although you can buy and sell a bond at any time during that term. Companies issue corporate bonds while the British government issues Gilts. They are individual securities.

There are many different types of pooled investment and individual securities and the ones we offer are described below. However, please remember that diversification – maintaining a wide spread of different investments – is one of the most important principles of successful investing. We therefore don’t recommend purchasing individual shares or other securities on their own unless you already have a wide selection of other investments.

What risks are there when I invest my money?

The investment industry is highly regulated and so you can be confident that your money will be managed to high professional standards.

However, all investments come with some general risks:

  • Their value: The value of any investment you make – and any income you receive from it – can go down as well as up. This means you could get back less than the amount you invest. The exact level of risk will depend on each individual investment.
  • How long you hold them for: All the investments we offer should be considered as medium to long-term investments – we recommend five years or more. You shouldn’t rely on them for any money you might need in the short term (to pay off a loan, for example).
  • What you might get back: The return on any investment isn’t guaranteed. It depends on how it performs and any necessary or applicable charges you pay.
  • The effect of inflation: Inflation will reduce the real value of an investment as the years go by. If the return is less than the rate of inflation, your money will have less buying power in the future. Equally, money kept in cash, bonds and gilts will also reduce in value if the return is less than the rate of inflation.
  • Tax and tax relief: Tax rates can change over time and the tax relief given on some types of investment can also change. This may affect the overall return from your investment.
  • Market level risks: Economic, political and other external factors can mean that a whole asset class (shares or bonds, for example), or even the whole market, can fall in value at the same time.
  • The effect of withdrawals and deductions: If your investment growth is less than the money you wish to withdraw or need to pay for fees, then the value of your investment will reduce over time. So, if you withdraw 5% from your investment each year and it only grows by 3%, your investment will fall in value.
  • When assets are hard to buy and sell: Fund managers sometimes find it difficult to buy and sell certain assets, such as commercial property, investments in emerging markets and corporate bonds. This can be due to market conditions. When this happens, they may restrict new investment into their funds or you may experience delays if you’re trying to sell units or shares. Similarly, if you invest in exchange traded instruments, such as company shares or bonds, it may not be possible to sell these immediately due to insufficient market demand. This is known as ‘liquidity risk’.
  • The effect of an interest rate change: If interest rates rise it is positive for savers. Other types of assets can seem less attractive by comparison. Investors holding shares in companies with high levels of debt could be hit hard as could mortgage holders with variable rate mortgages. The value of a bond, for example, tends to fall when interest rates go up.
  • The effect of exchange rate changes: Investing in foreign shares, bonds or property either directly or within a fund, carries the added risk of exchange rate changes. If sterling strengthens against the currency in question, the investment will buy fewer pounds meaning any gain could be reduced. On the other hand, a weaker pound would enhance foreign returns in sterling terms. Some funds are now hedged to offset this risk.
  • The risk of default: Default risk is the chance that companies or individuals will be unable to meet the required payments on their debts. A default could result in a 100% loss on investment. For corporate bonds and gilts, a default may also mean that investors lose out on periodic interest payments and the value of their investment in the bond.

 

How do I get started investing in stocks and shares?

You can invest in exchange traded instruments such as shares, investment trusts, ETFs through our online share dealing service. Dealing times will vary depending on the type of order placed. Our service is primarily an online service; however, for some exchange traded instruments such as Investment Trusts and ETFs, you can also invest over the phone.

Please note that when investing in funds, deals are placed at the next available dealing time. If you give an instruction by post, it may be processed on the following business day as investment instructions received in the post are usually processed within 24 hours.

One-off investments

You can make lump sum investments by using a debit card or by sending us a cheque. If you’re paying by building society cheque or banker’s draft, the cheque should be made payable to Fidelity using your title and name e.g. (Fidelity – re Mr J Smith). You’ll also need to ask your building society to endorse the cheque before you send it to us.

Regular investments

Making regular contributions to a savings plan can be a great way to build up a larger sum over the long term. It can also remove the temptation of trying to ‘time the market’ – changing your long-term plan by buying or selling investments based on short-term market movements.

If you’d like to make regular payments into your account, you can set this up online. Your instructions will be processed within five days, and we’ll start collecting your regular contributions from the next available collection date. When we collect money for regular savings, it is held as cash within your account for two working days before we buy your chosen investments. For example, if we collect your money on the 10th of each month, we may invest it on the 12th. This is because a bank may ask us to return the money for up to two days following its collection, although this rarely happens.

How can I invest?

You can invest in exchange traded instruments such as shares, investment trusts, ETFs through our online share dealing service. Dealing times will vary depending on the type of order placed. Our service is primarily an online service; however, for some exchange traded instruments such as Investment Trusts and ETFs, you can also invest over the phone.

Please note that when investing in funds, deals are placed at the next available dealing time. If you give an instruction by post, it may be processed on the following business day as investment instructions received in the post are usually processed within 24 hours.

One-off investments

You can make lump sum investments by using a debit card or by sending us a cheque. If you’re paying by building society cheque or banker’s draft, the cheque should be made payable to Fidelity using your title and name e.g. (Fidelity – re Mr J Smith). You’ll also need to ask your building society to endorse the cheque before you send it to us.

Regular investments

Making regular contributions to a savings plan can be a great way to build up a larger sum over the long term. It can also remove the temptation of trying to ‘time the market’ – changing your long-term plan by buying or selling investments based on short-term market movements.

If you’d like to make regular payments into your account, you can set this up online. Your instructions will be processed within five days, and we’ll start collecting your regular contributions from the next available collection date. When we collect money for regular savings, it is held as cash within your account for two working days before we buy your chosen investments. For example, if we collect your money on the 10th of each month, we may invest it on the 12th. This is because a bank may ask us to return the money for up to two days following its collection, although this rarely happens.

What other payments does Fidelity receive?

Some fund managers pay us if they use the optional services we offer them. Banks also pay us up to 0.4% of the value of any cash we place with them on your behalf – this amount is not deducted from the money you entrust to us. We therefore don’t charge you a service fee for cash.

Finally, we sometimes receive other benefits such as invitations to business-related events.

What is a limit order and what types of order does Fidelity offer?

If you’re buying exchange traded instruments, the price you buy at depends on which type of order is placed:

Market order – you’re provided with a quote online based on the latest price which is available for 15 seconds. If you’re happy with the quote, you can buy or sell the shares immediately. If you’re not happy with the price, you can request another quote at the end of the 15 second period.

Limit order – you tell us a specific price online you’re willing to buy or sell per share which if reached will trigger your order to be placed. You can invest a monetary amount (for example, £50 of shares at 200p per share) or purchase a quantity of shares (for example, 200 shares at

200p). we send your request to the market and it is executed if your limit price (or better) is achieved for the full amount of your order. Limit orders expire at the end of the day if the market is open or at the end of the following day if it is closed.

At best order – you are not provided a quote for these transactions and they will only be processed on an at best price available at the time of execution. This type of order is also available online when the markets are closed or a quote cannot be provided for either a market-related or technical reason. This means we send your request to the market for a set quantity of shares or for a set amount of money. We will then attempt to fill that order at the best price available from numerous different market makers. In addition, transactions for regular savings and dividend reinvestments are combined with other customers’ orders (known as aggregated transactions) and are placed at certain times of day, at the best price then available at the time of execution.

How quickly will my share orders be executed?

Unlike with fund deals, you will be able to deal at any time of day, while the markets are open – there isn’t just one daily pricing point. With a market order your deal will go through straightaway at the price you have been quoted. If you place a limit order, the transaction will go through if the stock reaches the price you have specified, regardless of when this happens, as long as it is on the same business day that you placed the order. You can place a deal when markets are closed and it will go through as soon as they re-open. London markets are open from 8am to 4.30pm.

What information will I receive after I invest?

Once you’ve made an investment with us, we’ll send you the following information:

Transactions – each time you ask us to buy or sell investments we’ll send you a confirmation of transaction. For transactions like regular savings plans, regular withdrawals, and reinvestment of income, a confirmation of each transaction will be included within your account statement for the period.

Account statements – we’ll send you a quarterly statement to show you a summary of all your investments held with us. This statement will also summarise all the transactions we have made for you over the period. You may receive this information electronically if you register for our secure online service. If you don’t have an online account, we’ll send this information to you by post.

Can I cancel an investment?

If you invest directly with us without financial advice, you can’t cancel your investment. However, you can withdraw your money at any time by selling your investments or transferring them to another provider.

Managing your accounts and your money

How is cash managed within my accounts?

So that you know it’s there, we ask that you deposit or top up your cash balance on your account prior to making an investment. The quickest way to do this is with a debit card via our website. Cash is then credited to your account immediately and can be used to make an investment (your Investment ISA or Fidelity Investment Account, for example). This is known as ‘cash within your account’. Whether you’re making an investment or making a withdrawal you can always see what’s happening on your account. You can see the status of each instruction through transaction tracking online, and monitor your investments and cash balances as we process your investment instructions.

‘Cash within your account’ is a place to keep cash that you haven’t invested as yet. It is also where you keep any cash you have chosen to take out of the market, perhaps because stock markets are going through a volatile period. You can also pay cash into your account to secure your ISA allowance for a tax year before deciding where to invest it. ‘Cash within your account’ is a new facility and replaces the ISA Cash Park.

Please note: any cash invested in your ISA account to cover any fees payment will count towards your ISA allowance for that tax year. When buying exchange traded instruments we buy as many whole shares as possible. Any remaining cash will stay within your account.

How do I pay the dealing fees?

We will take all the fees and charges you pay from ‘Cash within your account’. Where there is insufficient cash available within your account to pay any charges, we’ll make up the difference by selling some of your investments when a fee is due. We’ll normally start with the largest investment in your account (we will try not to sell investments that carry dealing charges like exchange traded instruments, unless they’re the only investments you hold).

Can I take an income or make regular withdrawals?

Yes, you can use your investment to provide you with an income in a number of ways:

  • Income payments
  • Regular withdrawals
  • Selling all or part of your investment

Income cannot be taken from a Junior ISA.

Income payments

You can choose to have any income generated from your investments to be paid out to you. The cash will be placed in ‘Cash within your account’ before the payment is made.

If you choose to receive income, we’ll add together all the income payments received from your investments over a period. We’ll then make one single payment to you. You can choose from monthly, quarterly, half yearly or annual periods.

Regular withdrawals

You can take a set amount of money out of your investments on a regular basis, by setting up a Regular Withdrawal Plan.

You can ask for withdrawal proceeds to be paid monthly, quarterly, semi-annually or annually. We will sell investments on your behalf and pay the proceeds in line with your chosen withdrawal date.

Selling all or part of your investment

You can also make withdrawals by selling all or part of an investment. Selling your investments is covered in more detail below

Can I reinvest any income generated by my investment?

Yes, you can. When a share generates an income payment, you can use this to automatically buy additional shares. Please note: the fund manager may make a charge when you do this.

See details on charging.

You can also choose to reinvest dividend income from an exchange traded instrument in order to buy additional shares. We will place the order as soon as it is practical to do so once the income payment has been received. The income payment will only be reinvested into the asset that generated the income, if the income received is over £10. If the income received is below £10 or it is not possible to buy at least one share once dealing fees are applied, the income will be retained in ‘cash within the account’. Please note: when there is enough cash in the account to buy a share, you will need to buy it – it won’t happen automatically.

How can I find out how my investments are doing?

Yes, you can change your investments at any time as outlined below.

Fund investments

You can move money from one fund to another through switching. Similarly, you can move money to and from cash at any time. Switch transactions will normally be processed over the course of two consecutive days, although this may be longer in some cases. We don’t charge you a switching fee, although it’s possible that a fund manager will make a one-off charge.

See details on charging 

Please note: if you switch out of a fund that’s part of a regular withdrawal plan, you’ll need to adjust your plan. The amount you receive may be reduced – or no payment may be made at all – if you don’t make any necessary alterations.

Exchange traded instruments

While switching is not available for exchange traded instruments like shares, you can place separate sell and buy instructions online. For ETFs and investment trusts, you can place orders by phone (although phone dealing charges are much higher than online).

Can I change my investments?

Yes, you can change your investments at any time as outlined below.

Fund investments

You can move money from one fund to another through switching. Similarly, you can move money to and from cash at any time. Switch transactions will normally be processed over the course of two consecutive days, although this may be longer in some cases. We don’t charge you a switching fee, although it’s possible that a fund manager will make a one-off charge.

See details on charging 

Please note: if you switch out of a fund that’s part of a regular withdrawal plan, you’ll need to adjust your plan. The amount you receive may be reduced – or no payment may be made at all – if you don’t make any necessary alterations.

Exchange traded instruments

While switching is not available for exchange traded instruments like shares, you can place separate sell and buy instructions online. For ETFs and investment trusts, you can place orders by phone (although phone dealing charges are much higher than online).

Can I move investments I hold elsewhere to Fidelity?

Yes, if you have investments with other providers you can arrange for them to be moved to us. You can move investments to us without having to sell them (this is known as re-registration). Find out more about transfers

Fund investments

For ISAs, we will simply take over their administration of your funds if they’re available on our website. In other words, you keep the same funds. If your funds aren’t available with us, we will have your ISAs sent to us as cash. You can then move your money into any of the funds or other investments in our range (you’ll be out of the market until you make a further investment selection once the transfer is complete).

For investments held outside of an ISA, we’ll only re-register funds if the same fund is available. We may not offer the exact same ‘share class’ of the fund you’re invested in. In these cases, we’ll re-register your investment and then switch your holding into the share class that we offer. The switch normally takes place over two consecutive business days in which time you’ll be out of the market. This means you could miss out on growth and income if the market rises during this period. You may also have to pay additional costs as a result of a bid-offer spread or fund manager’s buy or sell charge. We’re unable to accept partial transfers or the transfer of Junior ISAs or Child Trust Funds. In addition, cash transfers are not available for investments held outside of an ISA.

Exchange traded instruments

We also allow you to move across exchange traded instruments (including shares) where we offer them on our investment finder. Where they’re not available, we’ll have your exchange traded instruments sent to us as cash.

Please note that if you start the transfer process and have shares we don’t currently offer:

  • We’ll have to sell them and move them across as cash within your ISA.
  • We would not transfer shares held inside an Investment Account.

Find out more about this in our brochure Moving your investments to Fidelity

Can I move my investments held in an investment account to an ISA (Bed and ISA)?

Yes, you can do this. If you have a Fidelity Investment Account you can move investments to a Fidelity ISA Account (assuming you haven’t already used all your annual ISA allowance). As our share dealing service is primarily an online service, you can sell your shares as cash in the first instance before using the proceeds to make an investment into your ISA. With buying or selling shares, we charge a flat fee of £10 within an ISA or Investment Account.

Find out more about our charges

Selling your investments

How do I trade online and sell shares?

You can sell any exchange traded instruments you hold with us. You have the option of placing a Market Order or Limit Order. You also have the option of placing an at best order when the markets are closed or a quote cannot be provided for either a market-related or technical reason.

We normally pay your money into ‘Cash within the account’ and then you can instruct us to pay this by direct credit to your personal bank or building society. This could take up to 3 days after we receive your money from the sale of relevant exchange traded instrument.

How do I move my investment to another provider?

If you’d like to move your investments to a new provider you should ask them to arrange this directly with us.

What if I’ve moved abroad?

If you inform us that you’ve moved abroad, we’ll place certain restrictions on your account. You’ll have to sell your investments into cash within the accounts you hold. If you want to sell your investments to your bank, we can pay this money into a UK bank account or by cheque.

Is there any limit on the frequency or timing of trades?

We will actively monitor trading levels and may refuse at our discretion to accept your Investment instruction because of your trading history or if we believe your request may be disruptive. We discourage short term or excessively frequent trading in the Investments we make available through our platform as this can harm performance and increase costs.

Can I automatically sell shares on a set schedule?

No. you can’t select shares within a withdrawal plan.

Can I automatically buy shares on a set schedule?

Yes, you can do this by setting up a regular savings plan with us. You can choose from monthly, quarterly, half yearly or annual periods to buy your chosen shares. Please note that the charges are £1.50 for each stock you buy.

Corporate actions

What is a corporate action?

Occasionally, companies you've invested in will propose an event that may affect your investment in some way (for example, a merger or a stock split).

Sometimes you'll be able to respond to these and choose how, or if, you participate. Other times, the event will be mandatory. These events are known as ‘corporate actions’.

I’ve received a corporate action notification, what do I need to do?

To view your corporate actions, log in at fidelity.co.uk and select 'My accounts'. You'll find corporate actions under the 'Manage investments' menu.

Once you’re on the landing page, under 'Awaiting your response', use the 'View details' link next to the corporate action you want to view. You’ll find the available election options at the bottom of the ‘View details’ page. Once you’ve chosen your election option, select 'Submit'. An on-screen confirmation will appear immediately.

How can I view my corporate actions?

To view your corporate actions:

  1. Log in at Fidelity.co.uk
  2. Select 'My accounts'
  3. Go to the 'Manage investments' menu
  4. Select ‘Corporate actions’

How will I know if I have a corporate action on one of my investments?

When there’s a new action available or an update to an existing corporate action you’ll receive a secure message telling you to log into your account and view it. There will also be a message on the account summary page.

How do I respond to a corporate action?

Once you’re on the corporate actions page, select 'View details' next to the action you want to respond to. You’ll be presented with the options available.

Once you’ve selected your chosen option, select ‘Submit' and an on-screen message will confirm your choice.

If you change your mind you can edit your choice up until the closing date shown onscreen.

How do I pay for a corporate action where I've elected to subscribe for new shares?

If you want to participate in a corporate action where you subscribe for new shares, you’ll need to ensure there’s enough cash in your account, otherwise your subscription won’t be successful. You can add cash from the ‘Account summary’ page or the ‘My accounts’ menu.

As soon as you’ve responded to the corporate action, the cash you’ve designated for the shares will be set aside and cannot be used for any other activity on your account.

How will I receive my money and / or shares from a corporate action?

Corporate actions will sometimes result in shares and / or cash being issued. In these scenarios, your shares and / or cash will arrive in your Fidelity account on or just after the 'effective date' shown onscreen. (You may also see the effective date referred to as the ‘pay date’).

For actions where cash has been debited to pay for shares, an on-screen confirmation will appear in the 'View details' section of that specific corporate action.

What happens if I don’t respond to a corporate action by the closing date?

We’re unable to take any action on your behalf once the closing date has passed. If there’s a default election option and you have not responded by the closing date, we’ll assign you the default election option.

I hold the same share in my ISA and GIA but there are different election options. Why?

Occasionally, there will be corporate action events where the shares being issued or offered fall under the 'non-qualifying investments' category, as published by the HMRC, and therefore cannot be held within an ISA.

In these scenarios, we’ll notify you online and exclude this option from view.

Why Fidelity’s closing date for responses earlier than the company registrar's deadline?

You may notice that Fidelity's closing date for corporate actions is always earlier than the date stated on any document or prospectus provided by the company issuing the action. This is so we can collect all responses and provide them to the company's registrar in good time for the company’s own closing date.

Will Fidelity advise me on which election option to take?

No, we don’t give personal recommendations or advice on which election option to take.

Please ensure you’ve read all the relevant documentation from the company issuing the action and if you’re still unsure which option to take, speak to an authorised financial adviser.

Other questions you may have

Will I have to pay tax on my investments?

This depends on your individual situation and type of investment you make.

The Investment ISA and Junior ISA

You don’t have to pay UK tax on income or capital gains produced by your ISA investments (including any rebates paid to your account). You don’t have to declare your ISA investments on your UK tax return. We reclaim any UK basic rate tax that’s been deducted from property income payments in your ISA and reinvest this amount on your behalf.

The Investment Account

If you’re a UK resident, you should declare income and capital gains on your HMRC self-assessment tax return.

Selling units or shares for any reason (including those we sell to pay any fees) could make you liable for UK capital gains tax.

Property income payments are subject to basic rate tax of 20%.

Any rebates and ‘Negotiated Fund Manager Discounts’ you receive are subject to income tax. We’ll buy additional units or shares in your investment on your behalf after we have deducted basic rate tax of 20%. In these two cases, you’ll have no further UK tax to pay if you’re a basic rate taxpayer. You may be liable to additional income tax if you’re a higher or additional rate taxpayer.

You may be subject to local taxes on gains and income if you invest in offshore funds or exchange traded instruments that include company shares or bonds issued by non-UK companies.

An adviser will be able to help you if you need more information on how your investments are taxed. You can also find more information on tax in our factsheet Supplementary information about taxation.

Please remember that tax treatment depends on individual circumstances and all rules may change in the future.

Can I appoint someone to look after my investments (Power of Attorney)?

Yes. If you’re unable to look after your investments yourself, because of ill health, for example, you can appoint a Power of Attorney. This is a legal arrangement that allows you to appoint someone (the ‘Attorney’) to make decisions on your behalf.

What can a Power of Attorney do on my behalf?

Power of Attorney is a way for one person to give someone else the right to look after their financial affairs. If you appoint a Power of Attorney to deal with your account with us, they will be able to:

  • Request copies of documents relating to your account(s), including:
    • statements and valuations
    • confirmations of transactions
    • tax vouchers.
  • We’ll send these to your home address unless we’re instructed otherwise.
  • Discuss your account(s) with us by telephone.
  • Provide buy, sell and switch instructions for your accounts (please read our terms and conditions for more on this). Dealing on ISA accounts is also subject to HMRC rules.
  • Access your accounts online (if you give them permission to use your username and password). However, this is at your discretion and is not something we recommend.

Please note: there are some extra procedures required when applying for an ISA. We’re unable to accept an ISA application signed by your Attorney unless it is submitted with either:

  • A Lasting Power of Attorney that has been registered with the Office of the Public Guardian. This must not place any restriction on the Attorney(s) regarding making a decision to open an ISA.

OR

  • An original sealed Court of Protection order or Enduring Power of Attorney stamped by the Office of the Public Guardian (where you are mentally or physically incapacitated).

How do I appoint a Power of Attorney for my Fidelity accounts?

There are two ways to do this:

  1. Appoint an official Power of Attorney using a solicitor. As a financial institution, we need to see a Power of Attorney or Court of Protection order authorising the Attorney to deal with your financial affairs.
  2. Authorise someone to deal only with your Fidelity account, you can complete Fidelity’s Power of Attorney document, which you can download here

A Power of Attorney can have access online if you give them permission to use your username and password. This is at your discretion and something we do not usually recommend.

Are you a member of the government’s financial compensation scheme?

Yes, Fidelity is covered by the Financial Services Compensation Scheme (FSCS). If we’re unable to meet our obligations you may be entitled to compensation from the scheme. There are different levels of compensation available for different investment products.

Cash

When you hold cash in your accounts, we deposit this with one or more UK banks. We have carefully selected these banks and each one is covered by the Financial Services Compensation Scheme. If one of these banks becomes insolvent, you’ll be protected up to a maximum of £85,000. Please note: this may change in the future. Current protected amounts can be found online at the FSCS website 

We may place your cash with more than one bank to achieve diversification and reduce risk. However, we actively monitor all of the banks with whom we hold deposits. Your money is considered to be spread across the banks in the same proportion as all our other customers. So, for example, if 20% of the cash we invest on behalf of our customers is held by a bank that fails, you would be able to apply for compensation for 20% of the cash balances you have with us. Please contact us for more details of the bank(s) we use to hold your cash.

Further information on the scheme is available at the FSCS website  or in the Fidelity Client Terms.

Investments

Please note: exchange traded instruments and offshore funds (including exchange traded funds) are not covered by the Financial Services Compensation Scheme.

What happens if I need to make a complaint?

We hope this situation will never arise but should you ever need to make a complaint you can contact us in a number of ways:

Online

Send us a secure message through your online account at any time.

By phone

0800 41 41 61 (Monday to Friday, 8am - 6pm; Saturday, 9am - 6pm)

By post

Fidelity Personal Investing,
Oakhill House,130 Tonbridge Road,
Hildenborough,
Kent TN11 9DZ.

If you call or write to us, we’ll need your 10-digit customer reference number for security purposes. You’ll find this number on the statements we send to you.

If you’re not satisfied once we have responded to your complaint, you can refer your case to the Financial Ombudsman Service (FOS).

You can also write to the Financial Ombudsman at:

The Exchange Tower,
Marsh Wall,
London E14 9SR.

or call them on 0800 023 4567 or 0300 123 9123.

We have a full procedure set up for dealing with any complaints. We can let you have details of it on request.

How do I know if share dealing is right for me?

This depends on your personal circumstances. If you don’t owe any money and have some disposable income, after you’ve met your monthly expenditure then you can choose to either save the money or invest it.

Of course, it’s always good to have some money set aside for a rainy day and to pay cash, if possible, for big purchases such as a new car or a holiday. A simple savings account is probably your safest bet for those instances. But if you have money that you won’t need in the short term and if you want to see it grow faster, over time, than it will in a savings account, then investing it is one possible way to get a greater return. The downside of a savings account is that you’ll probably only make a small amount of interest on the money you save.

If your goal is longer-term, such as saving for retirement, you may well be able to generate a greater return on your money by investing it. It’s important to remember that investments can go down as well as up and you may not get back all you invest.

We recommend that you speak to a financial adviser before you start investing. They’ll help you to get a clearer picture of your situation and to assess what level of risk and what sort of investments may suit you.

What taxes do I pay on investments?

You may have to pay Capital Gains Tax or Income Tax on the money you earn from shares held in an Investment Account. So you may want to first consider using up your allowance in an Investment (or ‘Stocks and Shares’) ISA.

The amount of tax you pay depends, of course, on your personal circumstances and on the level of return that your investments receive.

 We automatically deduct 20% for Income Tax on any interest you get. If you’re a higher rate taxpayer, you’ll have to pay more. If you’re a lower rate earner or have unused Personal Savings Allowance, you may be able to get a refund from HM Revenue and Customs.

 We don’t automatically deduct tax from dividends you earn from your investment. Under normal circumstances, you’ll be entitled to the ‘Dividend Allowance’, which means the first £5,000 of dividends you receive each year is tax-free. We also don’t deduction Capital Gains Tax on any increase in the value of your investments. However, you may be assessed for Capital Gains Tax when you complete your tax return, if the total gains in a tax year are higher than your annual allowance.

Which stocks and shares can I trade in?

Please see our wide range of investments on our investment finder.

I have paper share certificates. Can I add them to my online account?

The days when share trading was done using paper are long gone. But we can easily convert paper share certificates into electronic form on your behalf. This is called ‘dematerialisation’ or ‘demat’.

We’ll then hold the electronic shares in your account, as we would any other investments, and you can use them for online and telephone trading. If you later want to re-convert the shares to paper certificates (rematerialisation), we can also do this for you.

Can I trade in international stocks?

No, but you will be able to trade in CREST Depository Interests (CDIs) – these are UK securities, issued by CREST, which are designed to represent a company share traded on an overseas stock market. They offer a way for you to buy and sell a number of non-UK stocks in sterling.

 

Can Fidelity advise me on what stocks to invest in?

No, we do not provide advice. If you are unsure about the suitability of an investment, you should speak to an authorised financial adviser.

If a company decides to pay a dividend, how are they paid out?

Should a company decide to pay a dividend, you can receive the payment in a number of ways:

  • Paid out to your bank account
  • Paid out as cash within your Fidelity account
  • Reinvested within the same stock - a charge of £1.50 is applicable

When are dividends paid out?

The timing of dividend payments can vary as they are paid at a company’s discretion depending on a number of factors (such as company performance). If and when a company pays out a dividend, we will reinvest or pay it out to you based on your income preference as soon as practicable after we receive them. For more information, you can find out specific stock information through our factsheets.

How can I send a copy of my holdings and transactional information to a third party?

This can be done through our ‘Duplicate trade confirmations’ service.

To activate the service, you’ll first need to log in to your account. From the My accounts menu in the top right, select Profiles and then select Preference Centre. Select ‘Duplicate trade confirmations‘ and you can then add the name and address of your chosen third party. Once you’ve added the details, you will receive a message to show that this has been successful and the service will be activated automatically. We’ll then send a covering letter to them as well as a daily copy of your recent ‘transactions’ or ‘trades’.  If you haven’t made any changes to your investments, then we won’t send anything. You can deactivate the service at any time, using the toggle off bar on the same page.