EastCoaster: In case you're instructions do not include the phrase 'cleared for the app' ,then you're right,and they are wrong.
We are very often cleared to a IF from where we can intercept the ils,but if no 'clearance for the app' it's issued then I will not intercept the ils.If this is the case,in order to avoid any confusion,I usually ask about the clearance just before the IF.
As I remember,I never did a holding so close to the rwy.
As I see,you instruct the a/c to route to center fix FOR the ils?
Maybe this 'FOR' is causing the confusion.It can suggest something like 'go there in order to intercept the ils'.
Brgds Alex