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H-L introduces a Tracker Platform Charge
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I currently hold several HSBC trackers in a HL ISA - if I sell these and buy back in to actively mange funds ( in order to avoid the new charges ) will these transactions be classed as new ISA contributions?0
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No, you can switch between investments or even between ISA managers without the taxman being interested. HL have an option so that you can switch between funds, sell and buy, on the same day.fieldofdreams wrote: »I currently hold several HSBC trackers in a HL ISA - if I sell these and buy back in to actively mange funds ( in order to avoid the new charges ) will these transactions be classed as new ISA contributions?0 -
fieldofdreams wrote: »I currently hold several HSBC trackers in a HL ISA - if I sell these and buy back in to actively mange funds ( in order to avoid the new charges ) will these transactions be classed as new ISA contributions?
Nope, you can more stuff around inside the ISA (or SIPP) as much as you like, it's only putting new money in that counts as a subscription.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.0 -
Quite. If you're willing to send me a cheque I'd be more than happy to accept it....
Don't go getting all excited as you rip open the post.
There is an article on Citywire saying that HSBC were giving HL 10 to 15 basis points in exchange for them not imposing the 0.5% fee. If course, now HL are taking this *and* the £2 pcm.
It's interesting that HL didn't find 15 bp to be enough, but seem happy to take 50 bp and refund 25 bp to the investor. This might suggest that we'll see platform fees of 0.25%, perhaps with a cap at around the £45-ISA/£200-SIPP level for HL, and £60/£120 for leaner and meaner operations such as Bestinvest. The latter already refund half of the trail for anyone with family holdings of >£50k.
I'm starting to feel that post-RDR won't be scary for investors and will enable us to compare platforms and investments on a like-for-like basis.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.0 -
Rollinghome wrote: »No, you can switch between investments or even between ISA managers without the taxman being interested. HL have an option so that you can switch between funds, sell and buy, on the same day.
Excellent, thats the first good bit of news Ive had since I heard about these new charges!
Thanks for the responses0 -
More than that, since you don't know what kickbacks they're on.I contribute towards that. About £15 a year
HSBC have now disclosed that they've been kicking back about half of their AMC to H-L to discourage H-L from charging platform fees."It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis0 -
HSBC have now disclosed that they've been kicking back about half of their AMC to H-L to discourage H-L from charging platform fees.
And we thought HL were just being nice ...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.0 -
Presumably they are making a similar payment to bestinvest, which would explain how BI can afford to offer the HSBC trackers without charging any custody fee. This is good news for anyone using bestinvest to access the HSBC trackers because it potentially means that bestinvest might be able to maintain the current position. I suppose it depends whether bestinvest thinks that HL has set a precedent and taken all the flak, allowing bestinvest to do the same thing. Or, are bestinvest happy to continue collecting just the 10-15 basis point commission from HSBC? (I assume they are going to benefit from an inflow of sudden new investments by HL refugees.)gadgetmind wrote: »There is an article on Citywire saying that HSBC were giving HL 10 to 15 basis points in exchange for them not imposing the 0.5% fee. If course, now HL are taking this *and* the £2 pcm.koru0 -
HSBC trackers have always paid something to platforms - Fidelity published all of their platform rebates back in September this year and showed all the HSBC trackers as paying 40% of the 0.25% AMC to them. OK, 40% of 0.25% isn't a fortune but it is a commission so H-Ls comments that HSBC trackers pay no commission was not strictly true.Old dog but always delighted to learn new tricks!0
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A thought struck me, so I thought I'd go and check.
HL are also going to charge for holding money market funds, some at £1 and others at £2 per month. Now these are not necessarily funds that everyone would usually want to hold, but they are used as a method of potentially generating a bit of interest whilst being out of the markets and/or drip-feeding back into other asset classes. But no longer, not with HL.Living for tomorrow might mean that you survive the day after.
It is always different this time. The only thing that is the same is the outcome.
Portfolios are like personalities - one that is balanced is usually preferable.
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