iii introducing quarterly £20 charge

pqrdef

Another think I don't like about flat-rate charges - and the same goes for current account charges. They encourage people to just use one provider, instead of having a collection of accounts and using the most appropriate for each job.

The FSA might like to consider that this doesn't help to promote competition. Inertia will rule even more than it already does. People are much less likely to open a new account to take advantage of a good deal, if they then have to close their existing account to avoid being charged twice.

pqrdef

gingellr wrote: »

I have made an official complaint to II but cant see it doing any good by what they said on the phone.

Can't see the Ombudsman being much interested either. Considering the FSA wants the fund distribution industry to change its charging models, it would be quite bizarre if the Ombudsman were to uphold a complaint against a broker on the grounds that the broker is changing his charging model.

But if enough people complain to the FSA, some lessons might be learnt about exit charges and notice periods, before it's too late.

i1189

pqrdef wrote: »

No closure fee as such.

£0 to sell funds at present, £10 per item from 1st July.

Is this definitely right? I read the current charges as £0 to buy funds, but £10 to sell? If it's £0 to sell then that would be great and would then just leave me with my shares to transfer.

fagun

If of help, this is the complaint I have submitted to them.

Dear Sir

Complaint re. introduction of quarterly fee and charging for stock transfers out

You recently informed me that I will be charged a quarterly £20 inactivity / management fee from 1 July. Your FAQs state that I will still be charged a transfer out fee, if I decide to transfer my holdings to avoid paying this fee.

The introduction of a quarterly fee is a material pricing change that fundamentally alters the structure of my contract with you. Your failure to allow me to exit the contract without penalty is a breach of FSA Principles for Businesses 6 Customers Interests: A firm must pay due regard to the interests of its customers and treat them fairly. The inability to exit without penalty as a result of a unilateral change in contract terms is also a breach of the Unfair Terms in Consumer Contracts Regulations 1999.

Given the short timescales you have set, please reply immediately confirming that you will waive the transfer out fee. If I do not hear from you by end of day Thursday 7 June, I will raise a complaint with the FOS and FSA.

Kind regards

i1189

As they have already said that they will not waive my transfer out fee, I have now complained to the FOS.

Their number is 0800 023 4567. They were still open when I just called them (Saturday 12.10).

They are going to write to iii with my complaint.

kfm

dunstonh wrote: »

It is £500 although the FOS can remove it if the complaint is classed as frivolous.

I don't believe the issues being raised are frivolous, nor am I advocating people raise complaints with the FOS just for the sake of it.

As several people have mentioned, we may have agreed to exit fees with the new T&Cs last year but I think the majority did not expect III to introduce a new fee that would leave clients without a choice but to pay.

Raising a fee for something that is already charged is different and is not what is happening here. Introducing a new charge for a service which clients have a choice of using or not is also different to what is happening now.

Aureus

pqrdef wrote: »

No closure fee as such.
£10 per item to sell shares. And the spread.
£0 to sell funds at present, £10 per item from 1st July.
£15 to transfer as stock.
.

Hi,

Just to be entirely clear. I currently have an ISA with Interactive Investor, all of it invested in index tracker funds. Would I be right that I will avoid II's fees entirely if, before 1st July:

(1) I sell my funds, but keep the money in the ISA wrapper as cash,
(2) I open an ISA with another investment platform,
(3) I fill out an ISA transfer form with the new platform, and use this to transfer the money from II to them without losing the ISA wrapper.

I know there are disadvantages to this approach, such as being "out of the market" for a period, but I want to clarify what my options are.

Thanks.

cashbackproblems

gingellr wrote: »

Selftrade today have changed their charges, now there is no admin charges if you make 1 deal or more per quarter, they also reimburse transfer exit fees upto £100 per account max of £300.

My exit charges from my ii isa will be £135 but I will get £100 back from selftrade so at least it will only cost me £35 to move my stocks then zero admin fees, they also do regular investments of £1.50 per deal.

I have made an official complaint to II but cant see it doing any good by what they said on the phone.

IF this is true and iii exit fees are as posted on this thread..then Selftrade look like the best bet.

bonzer

For those wanting to hold index trackers and other funds in an ISA, try Fidelity. I've been using them for a while - no charges [yet].

If they support your funds, they can do re-registration on ISA transfer which means you're not out of the market during the move.

gadgetmind

BTW, someone on the MF forums suggested that iii's policy is that any dividends received into your account after you have closed it belong to them. Sweet!

Watch those XD dates!