iii introducing quarterly £20 charge

tomo21217

Has anyone had a sucsesfull transfer out?

I am still trying to move to selftrade and whenever i chase i get told that III are so busy and they are delaying it.

Any onemoved out completly yet?

BLB53

Has anyone had a sucsesfull transfer out?

My transfer out to Sippdeal was completed this week - I had to keep perstering ii with SMs otherwise I think it just goes to the bottom of the pile.

Today they have reduced the balance of the final money I was waiting to withdraw, without any explanation so have sent a snotty message to find out whats going on - amounts to theft of clients money in my book!

They are going from bad to worse as a company - I would not recommend anyone putting their investments with ii.

cloud_dog

Received a letter from TD Direct laying out revised charging information for funds. No mention of changes to their existing charges (AMC) etc so I would like to think that this is the final piece in the puzzle for TD regarding RDR compliance.

FUNDS:..........................................................Platform Fee
Funds paying Trail Commission of 0.5% or more --- 0.35%
Funds paying Trail Commission of less than 0.5% -- Nill

jem16

cloud_dog wrote: »

Received a letter from TD Direct laying out revised charging information for funds. No mention of changes to their existing charges (AMC) etc so I would like to think that this is the final piece in the puzzle for TD regarding RDR compliance.

FUNDS:..........................................................Platform Fee
Funds paying Trail Commission of 0.5% or more --- 0.35%
Funds paying Trail Commission of less than 0.5% -- Nill

Dunstonh didn't think it was compliant earlier in this thread - see post 809.

Basically RDR expects all investments to have the same charging structure - the above does not.

Also, perhaps more importantly in view of the platform review, no mention has been made of rebating the platform fee, only the trail commission.

cloud_dog

jem16 wrote: »

Basically RDR expects all investments to have the same charging structure - the above does not.

You could well be right. I have just re-read and I missed a sentence which states.......... This is an interim measure etc, etc.

So will need to see what they do to complete their RDR compliance.

antonio1

Just_landed wrote: »

If I were you I would get back on the telephone to them and double check this out, or maybe Im misunderstanding what you are saying. I too have an ISA & Trading accounts in my name if they say take the £20 charge out of my trading A/C but I do a deal from my ISA A/C I do not pay the £10 commission. Or are you saying the commission (@ the reduced rate) for dividend reinvestment ?

Just seen your post. Yes you understood. No it's not anything to do with any reduced dividend commission rates. I have an ISA account and "linked" trading account. They took the £20 from the ISA balance. My first next trade was an automatic dividend reinvestment from the trading account. The commission charged was a few pounds. My understanding was no commission should have been charged for the reasons someone else above helpfully set out- it should have been deducted from the £20 credit. So it may be a mistake. But I can't be bothered disputing it because when my transfer takes effect they'll have to refund the £20 and then the dividend commission would be correct.

dunstonh

The charging structures should not be biased towards one method or the other. Certain explict costs can apply to one universe and not others (such as dealing costs) but the platform remuneration shouldnt discriminate between types. So, you should not have a situation where someone with tracker funds pays less than someone with managed funds.

And any mention of commission means it is not RDR or platform review ready. Trail Commission will not exist on purchases made after the end of this year. Legacy commission may still continue and unbundled platforms (those that are RDR/platform ready as much as they can be at this stage) will refund that commission to you.

If a firm is saying that they charge one rate for commission paying investments and a different rate for non commission then they are not compliant with the rule changes. They can effectively offset commissions but it has to be explicitly.

sabretoothtigger

Apparently the dividend policy for iii is that if you receive a £30 dividend and the shares cost £16. You will not be given any change nor fractions of a share, any money left is rounded down to zero, you will receive 1 share of £16 worth as your dividend.

iii may at times opt to enforce this purchase regardless of customer preference.

This is what they were doing with Santander, obviously alot depends on the price just how bad this policy turns out. The problem with Santander is they pay 4 times a year, so any loss is quadrupled and there are shares which pay 12 times a year which would prove very profitable for iii

Surely this goes against the spirit of RDR, certainly seems a secret charge to me.

grey_gym_sock

is that for the dividend reinvestment plan? it's not what their terms say:

http://www.iii.co.uk/trading/share-dealing/terms#section_c_dividend_reinvestment_plan

3.2 ... You will receive the highest whole number of the relevant DRIP Eligible Investments which can be bought with your available cash dividend for that DRIP Eligible Investment (less transaction costs) on the date of purchase. Any cash dividend that is surplus will remain in your account and will not be carried forward for use in the next DRIP.

or (this is unnecessary duplication):

3.9 You will receive the maximum whole number of DRIP Eligible Investments which can be bought on your behalf taking into account the dealing costs and stamp duty reserve tax for the purchase of the relevant DRIP Eligible Investments. We will not invest amounts less than the minimum amount, as stated on our Website. Any funds not invested will remain in your relevant an Interactive Investor Trading Account, Interactive Investor ISA or Interactive Investor SIPP.

do they claim that there is nowhere for the uninvested funds to remain, because your account is now closed? though that still wouldn't make any sense ...

westy22

Apparently the dividend policy for iii is that if you receive a £30 dividend and the shares cost £16. You will not be given any change nor fractions of a share, any money left is rounded down to zero, you will receive 1 share of £16 worth as your dividend.

I have been with iii for a long time (but not for much longer!) and I have never experienced this with their DRIP. I have always received my full dividend as cash into my account and if that is enough to buy 1 or more whole shares then they do this and leave any balance as cash, or if there is not enough to buy a share then the dividends stay in my cash balance.