Managing your ISA
What should I do if a provider changes its fees or Shariah methodology?
Steps to take when a provider notifies you of a change to fees or Shariah methodology, and how to protect your interests.
The short answer
Review the notice and supporting documents, ask the provider for clarification, consider alternatives and, if needed, seek financial and scholarly advice. Changes to fees or methodology can affect costs, compliance status and whether you want to remain invested.
Immediate steps on receiving a change notice
Read the notice carefully to understand the nature of the change, the effective date and any opt-out or transfer rights. Providers usually have contractual terms on notice periods and how changes are implemented.
Ask the provider for a clear, plain-English explanation and any impact analysis: how will fees change returns, or how will a methodology change affect holdings’ Shariah status?
When methodology or governance changes
If the provider changes its Shariah methodology (for example changing screening thresholds or data conventions), some holdings might move in or out of compliance. AAOIFI Standard 21 can serve as a practical reference, but different boards and providers will have different views.
Consider whether you want to continue under the new approach, move to a different provider, or seek a personal ruling from a qualified scholar. Remember that governance changes are a recognised form of provider risk.
What this means in practice
- 1Record the notice and timeline; check contractual terms for opt-out or switching rules.
- 2Request the provider’s detailed methodology change documents and any impact assessment.
- 3Compare likely fee changes to alternative providers and the cost of switching.
- 4Ask the provider whether holdings will be re-screened and how transitional arrangements are handled.
- 5If the change affects your religious criteria, consult a qualified scholar and consider a provider with a Shariah methodology you prefer.