Overview of the information we’ll give you about your GIA
- 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 GIA. This includes:
- The aims of a GIA
- Your investment – what you’re committing to
- The risks and the fees of using a GIA
- 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 GIA
- A Propelle GIA allows you to invest in one of 5 investment funds provided by Vanguard. Those funds are designed for long term investments and we recommend not to invest if you plan to use the money in the next 3 years.
- We aim to make investing in a GIA 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 GIA lets you invest as much as you want. You need to remember that you may be liable to pay taxes on any returns that you make on your investments.
- Capital Gain Tax – This tax is applied when you buy a good and sell it at a later date at a higher price. The rate at which it is taxed depends on the asset.
- Income Tax – You might already be paying income tax if you’re employed in the UK. Some investments give you dividends, which is considered a form of income. As with your other incomes, you’d need to pay taxes on this. The amount of tax depends on your tax band – as a basic rate tax payer, you’ll pay less tax than if you’re a high rate tax payer.
- 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 GIA.
The risks and the fees of using a Propelle GIA
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 GIA
What is a GIA?
GIA stands for General Investment Account.
It’s another type of account you can use to invest – but without any limits on the amount you can put in it each year. Many people use these accounts if they’ve already reached their ISA limit for a given tax year, and want to keep investing.
Unlike an ISA, you may need to pay tax on any gains or income you make on the investments in this account.
Who can open a GIA 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 GIA.
Can you take money out of your GIA?
You can request to take money out of your GIA at any time. In order to send you your money, we may have to sell down some of your investments, which can take x days to complete.
Here are some things to think about when taking money out of your GIA:
- 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 GIA, reduces your annual allowance, if you don’t put the money back in the same tax year.
What fees do you charge for a GIA?
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 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 GIAs are currently not protected by the FSCS.