Shares ISA Question

NeilF355
NeilF355 Posts: 18
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edited 18 October 2014 at 11:00AM in ISAs & tax-free savings
I have had a Shares ISA for some time now, it used to be a single company ISA, it was set up with employee share options and is administered by the management company my former employers used.

What I would like to know is do I have to use a management company to administer this ISA or can I administer it myself as I do with my cash ISAs?


My intention is not to add to this ISA but to sell the shares when they reach a certain value. It still consists of shares from only one company.

At the moment I am paying an “administration fee” which due to the value of the ISA is the maximum this management company charges. As far as I can see the only administration the company do for this ISA is to send me annual updates on its value (which I can get online very easily), notify me of any dividend payments (information which I already get from the company I have shares in)and to place any share dividends into their account under my name from which I then have to action withdrawal of the funds.

This service seems to be poor value for money to me.

Is there anything I can do about this?

Comments

  • Archi_Bald
    Archi_Bald Posts: 9,681
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    It depends on the contract you/your firm has with the management company. In principle, there is no reason why you should not be able to transfer(*) your shareholding from the management company to a DIY ISA you hold with one of the platform providers. It can take quite some time for such a transfer to complete, and there might be charges involved. You will have to pay regular charges to the platform, though. http://monevator.com/compare-uk-cheapest-online-brokers/

    (*) you must ask the new ISA provider to make the transfer, do not attempt it yourself if you wish to retain the tax-free status of the shares.
  • Thanks for the info and the link Archi Bald. Looks like IWeb offer the best deal for my situation, I'll ring them on Monday to ask about in specie transfer.
  • Archi_Bald
    Archi_Bald Posts: 9,681
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    Don't forget to ask your existing provider whether there are any exit charges and how much they are.
  • Eventually, after 14 days and 6 emails, tied my current ISA managers down to a £35 fine (oops..sorry fee!) to transfer out my ISA and have sent off the relevant forms.

    Interestingly in the "Request and authorisation to your existing ISA manager" section it said
    "I acknowledge that my ISA may have to be transferred in whole or partially as cash and authorise any sale of shares, if necessary"
    I crossed this sentence out and wrote a note saying that this MUST be an "in specie" transfer in line with the Financial Conduct Authorities ruling that with effect from 31st December 2012 platforms must offer in specie transfers.

    Not that I'm getting paranoid or anything but it appears that these days you have to read all of the small print!
  • Finally got my ISA transferred:j
    Am now arguing with my previous provider Equiniti over partial reimbursement of the administration fee I paid on 28th October which covers the period 1st October 2014 to 31st March 2015.


    They say that I'm not entitled to any refund as
    "when you opened your account, this will have happened part-way through a charging period"


    not true, it was opened effectively on 30/09/2007,


    " and you were not charged for that period, as the fee collection will already have taken place."


    I was actually debited on the 27/11/2007 for the period 1st October 2007 to 31st March 2008 so I WAS charged for that period


    "Had that first charge (April or October) been in arrears, you will have paid the same amount over the years"


    It was NOT so clearly I have not.
    Indeed I think the only circumstances in which they would have been correct would be if I closed my account at exactly the same point through the charging period as when I opened it, not very likely I think!
  • Unfortunately I also had an account with Equiniti containing a single company ISA.



    Cost of transferring this small (£8000) single company ISA.



    Should be simple and cheap Yes? No...........

    £62!!!

    £35 for the ISA move and £27 for 'the next 6 months management fee!!??

    (Be warned, looking at their 32 page terms and conditions has a section 13 on charges which does not list even a single charge explicitly. So much for the increased visibility of fees and charges).
  • NeilF355
    NeilF355 Posts: 18
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    Have to agree that they make it very difficult to see exactly what you will pay.
    Having raised a formal complaint with them they finally agreed, "as a Goodwill gesture" to refund the portion of their management fee covering the period from closure of the account (November 2014) to the end of the charging period (March 2015).
    Very generous of them I thought! :doh:
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