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  • FIRST POST
    • OneADay
    • By OneADay 30th May 12, 8:00 PM
    • 8,657Posts
    • 6,624Thanks
    OneADay
    iii introducing quarterly £20 charge
    • #1
    • 30th May 12, 8:00 PM
    iii introducing quarterly £20 charge 30th May 12 at 8:00 PM
    What a bunch of .... - I mean I have very small share holdings and today they send me an email (not even a letter but an email) telling me they are introducing £20 quarterly charge from 1st July 2012.

    No option than to sell - shareholding so small, not worth transferring out.
Page 20
  • wellshafted
    Jolly good wheeze
    What ho carruthers, wasn't it spiffing of cameron to give us that extra unneeded tax break for the rich, yes I'm rather tempted to celebrate by going out and shafting some of the little people - oh what a jolly good wheeze, lets do it!!
    • sabretoothtigger
    • By sabretoothtigger 7th Jun 12, 2:39 PM
    • 9,991 Posts
    • 6,596 Thanks
    sabretoothtigger
    Looks up RDR and FSA and thats the reason for the overhaul. The thing is a few companies may be charging the little guys extra because of this.
    Ironically we did better with hidden charges because it was a subsidy for low account use I guess

    Remember the days when iii allowed free regular share buys for a whole year, that was nice. Halifax doubled some of their charges last December
    Tokyo residential prices have gone from 4x London in 1990 to ľ London in 2014
    Maybe this is one of those cases where you canít go home again,
    by Ben S. Bernanke, former Fed chairman
  • gingellr
    BBC moneybox have just interviewed me, they will be featuring it and the II issue on this Saturdays show 12pm on Radio 4.
    • dunstonh
    • By dunstonh 7th Jun 12, 2:57 PM
    • 89,851 Posts
    • 55,457 Thanks
    dunstonh
    Looks up RDR and FSA and thats the reason for the overhaul. The thing is a few companies may be charging the little guys extra because of this.
    Ironically we did better with hidden charges because it was a subsidy for low account use I guess

    Remember the days when iii allowed free regular share buys for a whole year, that was nice. Halifax doubled some of their charges last December
    Originally posted by sabretoothtigger
    Effectively, the small investors have been cross subsidised by the larger ones and index trackers have been cross subsidised by managed funds. That is coming to an end (mostly).

    Some of the platforms issued tracker funds as loss leaders because they made their money from the managed funds where they got an undisclosed cut of the annual management charge. Some also kept some or all of the IFA trail commission despite not giving any advice (e.g. HL's SIPP kept all of it and only refunded upto half on the ISA despite also getting the platform cut).

    If we move to post RDR and post platform review, there will be no IFA trail commission and there will be no platform commission (after platform review - probably earlier given the number of fund houses issuing clean class now). So, no income for the platforms unless they charge you explicitly. Hence why you are now seeing platforms move to that model.

    The positive is that unbundled platforms (the type that do not run on commission) tend to offer institutional class or clean class funds. So, whilst you are paying the platform an explicit charge, you are getting funds at lower cost. The bundled platforms (those getting an undisclosed cut) tend to offer the retail version of funds or promote only commission paying funds. These cost more.

    The negative is towards those that only use index trackers as they will now have to pay platform charges or buy direct (not all will allow buy direct or have restrictions). Plus, smaller investors will likely pay more as most of the unbundled platforms have reduced charges for larger investors but higher charges for smaller ones to more reflect workload.
  • pizzical
    Don't pay the transfer fees
    I don't see why we should be held to ransom: pay the quarterly fee or pay the exit fees.

    I was looking into the FSA guidelines on this (search for FSA Unfair contract terms: improving standards in consumer contracts)

    The iii terms and conditions state that
    "We may introduce new charges or change our existing charges".

    That's just not specific enough, they don't provide a "valid reason". Also, given that they have changed the terms we should also be "free to dissolve the contract". Important word here being FREE not able.

    I sent them a secure message on Friday got a standard response. Its in our terms so tough etc etc. Sent them a more forceful response today including the following points:

    Your response did not address the issue of the inconsistency in your terms, namely that new customers in my situation (having less than £5000 invested) are exempt from the new fee. I do not consider this to be fair given that I am also a relatively new customer.

    Your response also states that you are not in the position to waive the transfer out fee since the change is in line with your terms and conditions. I accept that a transfer out fee is a part of the Terms and Conditions and that clause 11.1 states ďWe may introduce new charges or change our existing chargesĒ. However I would like to refer your attention to the FSAís regulations and guidelines regarding unfair contracts. I believe that the FSA and Financial Services Ombudsman are likely to deem this contract unfair because

    1. No valid reason is given for this change either in the terms and conditions or elsewhere. The reason given for the change on the webpage, namely, to ďencourage all our investors to be more engaged with their investmentsĒ is not a valid reason. You are an execution only service and should not be imposing requirements on trade frequency on your customers.

    2. As the change in terms is to my financial detriment, I should be ďfree to dissolve the contractĒ. Since you levy a transfer fee this is not the case. In particular FSA guidelines section 3.15 of ďUnfair contracts: improving standards in consumer contracts, January 2012Ē states ďwe would not regard consumers as being free to dissolve the contract if the terms did not
    provide that any exit charges would be waived to remove financial barriers to exiting the contractĒ

    Next complaint goes to the Financial service ombudsman.

    Look forward to the BBC feature.
    • gadgetmind
    • By gadgetmind 7th Jun 12, 3:05 PM
    • 10,610 Posts
    • 8,400 Thanks
    gadgetmind
    The expectation is that some platforms will go under and many will merge/consolidate.
    Originally posted by dunstonh
    TBH, that's part of the reason why I recently went with BestInvest: they actually seem to have a business model that stands a chance of working post-RDR.

    http://www.bestinvest.co.uk/article/12161/a-taste-of-things-to-come-br

    Encouraging?
    Last edited by gadgetmind; 07-06-2012 at 3:33 PM. Reason: Added BestInvest link.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
    • Bob Bridges
    • By Bob Bridges 7th Jun 12, 4:03 PM
    • 135 Posts
    • 28 Thanks
    Bob Bridges
    About to leave III ...
    This may be a bit petty but ...

    Just looked at my share dealing account with III, about to close it and move to HL.

    My account shows £3.03 in cash. Have just moved out £0.01
    That must be costing them money and it make me feel better ! Perhaps I'll do it £0.01 at a time. Maybe all us leavers should do that...

    I know - childish etc...
    Cheers, Bob
    • plunt
    • By plunt 7th Jun 12, 6:03 PM
    • 503 Posts
    • 198 Thanks
    plunt
    BBC moneybox have just interviewed me, they will be featuring it and the II issue on this Saturdays show 12pm on Radio 4.
    Originally posted by gingellr


    well done if there is anything i can add or help with let me know and want to push this as far as possible!!
    • Optimist
    • By Optimist 7th Jun 12, 6:29 PM
    • 4,415 Posts
    • 5,475 Thanks
    Optimist
    From iii

    We have listened carefully to our customers since we announced the changes to our pricing structure which introduced the following:
    • We will repay ALL income we get from funds back to customers
    • A flat £10 charge for all investments (or £1.50 for regular investments)
    • A £20 quarterly fee which includes 2 free trades (or £20 in trading commission)
    We are confident that our new pricing will be advantageous for most customers, even more so for those who are able to consolidate investments they have with other providers.

    However, we fully acknowledge that this new plan will not suit all people and we have made the decision to waive fees for customers who wish to transfer to other providers. We will not levy a charge for any transfer out requests we receive on or before 31 July 2012. In some circumstances it can take up to 8 weeks to complete a transfer, but as long as you instruct us in writing before 31 July 2012, the transfer will be free of charge.

    In addition, if we receive your instruction before 30 June 2012 the first quarterly fee payment will be waived while your transfer is underway.

    We apologise for any undue concern or inconvenience this price change may have caused.
    "The whole problem with the world is that fools and fanatics are always so certain of themselves, but wiser people so full of doubts."

    Bertrand Russell. British author, mathematician, & philosopher (1872 - 1970)
    • james_09
    • By james_09 7th Jun 12, 6:30 PM
    • 26 Posts
    • 15 Thanks
    james_09
    We have listened carefully to our customers since we announced the changes to our pricing structure which introduced the following:
    We will repay ALL income we get from funds back to customers
    A flat £10 charge for all investments (or £1.50 for regular investments)
    A £20 quarterly fee which includes 2 free trades (or £20 in trading commission)
    We are confident that our new pricing will be advantageous for most customers, even more so for those who are able to consolidate investments they have with other providers.

    However, we fully acknowledge that this new plan will not suit all people and we have made the decision to waive fees for customers who wish to transfer to other providers. We will not levy a charge for any transfer out requests we receive on or before 31 July 2012. In some circumstances it can take up to 8 weeks to complete a transfer, but as long as you instruct us in writing before 31 July 2012, the transfer will be free of charge.

    In addition, if we receive your instruction before 30 June 2012 the first quarterly fee payment will be waived while your transfer is underway.

    We apologise for any undue concern or inconvenience this price change may have caused.

    Yours sincerely
    • BLB53
    • By BLB53 7th Jun 12, 6:39 PM
    • 1,130 Posts
    • 911 Thanks
    BLB53
    Inevitable - the FSA have 'advised' them today to back down on exit fees.
    • afwone
    • By afwone 7th Jun 12, 6:45 PM
    • 75 Posts
    • 34 Thanks
    afwone
    An important victory! Well done everyone.

    And I am even beginning to feel better about iii. I hope this doesn't ruin them.
    • gadgetmind
    • By gadgetmind 7th Jun 12, 6:56 PM
    • 10,610 Posts
    • 8,400 Thanks
    gadgetmind
    Now, couldn't iii have made that a whole lot easier for themselves if they'd thought this through up front! I just don't think they realise how connected their customers are, and how quickly they can organise a buttload of adverse publicity.

    Between the guys fighting the BOI SLO, some of the sharesoc victories, and now this, investors really are getting a better deal.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
    • plunt
    • By plunt 7th Jun 12, 6:57 PM
    • 503 Posts
    • 198 Thanks
    plunt
    Well done all!!!!!!!
    • simonfitba
    • By simonfitba 7th Jun 12, 7:24 PM
    • 163 Posts
    • 64 Thanks
    simonfitba
    I'm delighted all other iii investors have finally been offered a way out. It was the sensible thing to do but should have been offered in the first place.

    Thanks to everyone who emailed and phoned in their complaints and to everyone who gave advice on the forums.

    My transfer form went in today. Selftrade will get my business.
  • Interactive_Investor
    Pricing Information from Interactive Investor
    We have listened carefully to our customers since we announced the changes to our pricing structure which introduced the following:
    • We will repay ALL income we get from funds back to customers - on a typical, actively managed fund you would get back 0.64% of your investment every year.
    • A flat £10 charge for all investments (or £1.50 for regular investments) whether in shares or funds
    • A £20 quarterly fee which includes 2 free trades (or £20 in trading commission)
    We are confident that our new pricing will be advantageous for most customers, even more so for those who are able to consolidate investments they have with other providers.

    However, we fully acknowledge that this new plan will not suit all people and we have made the decision to waive fees
    for customers who wish to transfer to other providers. We will not levy a charge for any transfer out requests we receive on or before 31 July 2012. In some circumstances it can take up to 8 weeks to complete a transfer, but as long as you instruct us in writing before 31 July 2012, the transfer will be free of charge.

    In addition, if we receive your instruction before 30 June 2012 the first quarterly fee payment will be waived while your transfer is underway.
    We have added a page to our site to clarify issues on the pricing change which you can get to directly from our homepage on iii.co.uk. or at iii.co.uk/landing/new-pricing
    We have also updated our FAQ to cover the other most common questions that our customers have raised with our call centres. This can be found via links on the pricing and charges overview pages or directly at iii.co.uk/newpricing/faq.

    Every investor has an individual situation and if you would like to talk through your specific circumstances, please do call us on 0845 200 3637.
    We sincerely apologise for any undue concern or inconvenience this price change may have caused and, whilst we understand that our new pricing structure may be unsuitable for some customers, we consider our new charges fair with a pricing structure that provides great value and is highly competitive.
    Last edited by Interactive_Investor; 07-06-2012 at 7:38 PM. Reason: links
    • Optimist
    • By Optimist 7th Jun 12, 7:39 PM
    • 4,415 Posts
    • 5,475 Thanks
    Optimist
    I'm delighted all other iii investors have finally been offered a way out. It was the sensible thing to do but should have been offered in the first place.

    Thanks to everyone who emailed and phoned in their complaints and to everyone who gave advice on the forums.

    My transfer form went in today. Selftrade will get my business.
    Originally posted by simonfitba

    Must admit Selftrade are looking the likely candidates for my and the family accounts too.

    Strangely I might have stayed as with linked family accounts the charges would have been manageable. However they really irritated me with the original mail explaining how they were doing me a favour.

    The end result was I believe inevitable. They were very badly advised with the presentation of these charges and then they compounded it with their complete lack of customer care and the arrogance of the responses they made to complaints.

    Well done to all.
    "The whole problem with the world is that fools and fanatics are always so certain of themselves, but wiser people so full of doubts."

    Bertrand Russell. British author, mathematician, & philosopher (1872 - 1970)
    • BLB53
    • By BLB53 7th Jun 12, 7:40 PM
    • 1,130 Posts
    • 911 Thanks
    BLB53
    Anyone who remains with iii after this fiasco needs their head examined!!
    • OneADay
    • By OneADay 7th Jun 12, 7:42 PM
    • 8,657 Posts
    • 6,624 Thanks
    OneADay
    Anyone who remains with iii after this fiasco needs their head examined!!
    Originally posted by BLB53
    Cretins have cost me shares and money - I sold mine quick (wrong or not I was not content with being associated with iii after this). Sent FSO a complaint.
  • gingellr
    Inevitable - the FSA have 'advised' them today to back down on exit fees.
    Originally posted by BLB53
    I think it may have been alot to do with the BBC getting involved.
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