12th March 2024

Propelle ISA Key Feature Document

Overview of the information we’ll give you about your ISA

  • The Financial Conduct Authority (FCA) is a financial services regulator in the UK. They need us, Propelle, to give you this important information so you can decide whether opening an ISA with us is right for you. Read this document carefully and keep it safe in case you need it in the future.
  • In this document, we’ll explain what you need to know about our Stocks and Shares ISA. This includes:
    • The aims of an ISA
    • Your investment – what you’re committing to
    • The risks and the fees of using an ISA
    • Questions and Answers
  • Read this along with the documents for funds you might invest in (the fund document or the KIID).

The aim of the Propelle ISA

  • A Propelle ISA allows you to invest in one of 5 investment funds provided by Vanguard. Those funds are designed for long term investments and are likely to be unsuitable if you plan to use the money in the next 3 years.
  • We aim to make investing in an ISA as simple and transparent as possible, guiding you through educational content and support all the way.

Your investment – what you’re committing to

  • There are 5 funds you can choose from, they are all provided by Vanguard.
  • A Stocks and Shares ISA lets you invest up to £20,000 per year without having to pay any taxes on the potential returns you make.
    • You can only pay into a single Stocks and Shares ISA in a tax year. If you’ve already paid into another Stocks and Shares ISA this year with another provider, you can’t open or pay into another one, that includes the Propelle ISA.
    • You’re only allowed to put a maximum of £20,000 per tax year in all your ISAs combined. The JISA doesn’t count towards that allowance, as it is technically for your child and not yourself.
  • In order to continue to benefit from this service, you have to follow the allowance rules above and remain a UK resident or a UK taxpayer at all times. If you move abroad and change jurisdiction from a tax point of view, you need to let us know and stop contributing to your ISA.
  • Some ISAs are called “flexible”, which means that you can take money out and put it back in in the same tax year without any implications on your allowance. This is not the case with the Propelle ISA, any money you take out and put back in, will count towards your allowance.

The risks and the fees of using a Propelle ISA

General risks when investing

  • Investing carries the risk of losing money. You need to be comfortable with this before investing. 
  • The value of your investment may go up or down, there is no guarantee that you’ll make a return on your investment.
  • A fund performing well in the past doesn’t mean it will continue to perform well in the future.

Risks that come with the funds we offer

  • Different funds may perform differently, even when all managed by the same fund manager.
  • The fees that Propelle and Vanguard take for managing your fund can impact your returns.
    • Propelle takes a 0.48% annual fee. We take that fee directly from your investment account once per month.
    • Vanguard takes a 0.22% annual fee. They take the fee directly from your investment account daily.
  • Transaction costs are small fees taken by the fund manager for selling down and buying your units. The cost is between 0.02%-0.08% and is taken by Vanguard directly. You can find out more here.

Making a complaint

If you’re unhappy with the way you’ve been treated, you can register a formal complaint, please address your concerns at support@propelle.io or in writing to Propelle at 36 Scotts Road, Bromley, England, BR1 3QD, United Kingdom.

If you’re unhappy with our resolution, you can contact the Financial Ombudsman Service (FOS). The web address is: http://www.financial-ombudsman.org.uk/ and the postal address is: Financial Ombudsman Service, Exchange Tower, London, E14 9SR.

Questions and answers about your Propelle ISA

What is a Stocks and Shares ISA?

Individual Savings Accounts – known as ISAs – are accounts in which you can save (for example, in a cash ISA) or invest (like our Stocks and Shares ISA). The money you make on your savings or investments in your ISA isn’t taxed. With a Stocks and Shares ISA, you don’t pay capital gains or income tax on gains or income which your investments make.

HMRC sets a limit on how much you put into your ISA each tax year. Although there’s a limit on what you can put into your ISA, there’s no limit on the tax-free gains you can make. However, it is important to note that tax is subject to personal circumstances and is subject to change. Individuals should consult with a qualified tax advisor to determine the specific tax implications of their ISA investments.

Who can open an ISA with us?

You must be a UK resident, which means you pay your taxes in the UK. You can’t open one if you’re a US citizen or have any tax to pay there.

You also must be aged 18 or over to open a Propelle ISA.

Can you take money out of your ISA?

You can request to take money out of your ISA at any time, by requesting a withdrawal in your Propelle dashboard. In order to send you your money, we may have to sell down some of your investments, which can take 5 business days to complete.

Here are some things to think about when taking money out of your ISA:

  • Investing is for the long term. It’s recommended to invest for a minimum of 3 years to give your money a chance to ride out market fluctuations. By taking money out too often or too soon, you may not reach your financial goals.
  • Taking money out of your ISA, reduces your annual allowance.

What fees do you charge for an ISA?

At Propelle we charge a single all in fee of 0.7%, regardless of your invested amount. We split this fee between Vanguard (the fund manager), who gets 0.22%, and ourselves, who take 0.48% of the fee. 

Can I transfer an existing ISA?

Propelle doesn’t currently support the transfer of an existing ISA to Propelle. We do allow you to transfer your Propelle ISA to another provider.

Can I cancel my investment account?

You have the right to cancel your investment account within 30 days of opening it. If you want to cancel your account, please get in touch at support@propelle.io and we’ll disinvest your total balance and close your account.

Can I switch funds?

Yes! You can decide to switch your selected fund anytime from the Propelle platform. The process can take up to 10 days.

Is Propelle regulated by the FCA?

Propelle is an appointed representative of RiskSave Technologies Limited, which is authorised and regulated by the Financial Conduct Authority (FRN: 775330)

Is my money FSCS protected?

Propelle ISAs are managed by Welathkernel, who is your custodian. If they fail as a custodian, each customer may be protected up to a value of £85,000, subject to conditions set out by FSCS.

Your ISA will be invested in one of our five Vanguard funds. These five funds are covered by the FSCS as well.