iii introducing quarterly £20 charge

plunt

if they dont move on the transfer out fee there is potential for a class action lawsuit.

ombudsman clearly talked about TFL (treating customers fairly) and all companies are incredibly scared of this so voice your opinions to them. and make it loud



surely we can match some of the following up with this issue:

http://www.fsa.gov.uk/pages/Doing/Regulated/uct/terms/unfair/index.shtml

Coz800

Interesting tip plunt. To take part in the class action lawsuit is it best to stay with iii for now, or leave? (BTW I can't find anything about how to close a trading account on the iii website!)

ex-iii

ruperts wrote: »

Was the aim of these reforms to discourage smaller investers? Surely not. Where on earth is the regulatory body in all of this?

I don't see how they could possibly be aimed at doing anything else.

If you have £800 sitting in your account, £80 is 10% annual commission! There's no way you're going to earn a profit after a 10% deduction - not unless you bet all your money on a single stock and get very, very lucky. If investing in indexes or ETFs, the odds against you are probably higher than the number of particles in the known universe.

If you have £80,000 in your account, £80 is 0.1%. That's barely even a scratch.

Someone higher up has obviously taken the decision that they should concentrate on the 'big' customers (presumably that's where the money is?) and that the 'small' customers can get stuffed.

xemeter

ex-iii wrote: »

I don't see how they could possibly be aimed at doing anything else.

Someone higher up has obviously taken the decision that they should concentrate on the 'big' customers (presumably that's where the money is?) and that the 'small' customers can get stuffed.

It can only be for that reason.

Although iii did say this:
''We believe that customers should be engaged with their investments and actively manage their portfolios. To support this, we are introducing a quarterly fee of £20.'':rotfl:

plunt

xemeter wrote: »

It can only be for that reason.

Although iii did say this:
''We believe that customers should be engaged with their investments and actively manage their portfolios. To support this, we are introducing a quarterly fee of £20.'':rotfl:

haha they have also mentioned a million times in the email it is because of the changes by the FSA rules on funds. what a joke, they are clearly trying to cover them selves!

pqrdef

What is especially annoying is that the FSA's issues with transparency only apply to funds. Share dealing charges are quite transparent already, and it's unlikely that any new FSA rules will affect share dealing.

Also, the share dealing business seems to have been lucrative enough for the brokers, and since there are no percentages involved, this is presumably just as true for small accounts.

And yet these charges are being dumped on people who don't hold any funds and won't get a penny from the rebating of trail commission.

munchymum

Newbie here, hoping someone more experienced can clarify what the situation with iii is. They are trumpeting this income rebate thing - at their example 0.64% rate, this income would just about outweigh the £80 annual fee on my current investment. But what I do not understand is whether or not the other funds supermarkets also offer this rebate? I've had brief looks at x-o and IWeb, and I can't find it mentioned. Anybody know?

plunt

Coz800 wrote: »

Interesting tip plunt. To take part in the class action lawsuit is it best to stay with iii for now, or leave? (BTW I can't find anything about how to close a trading account on the iii website!)

I talked to them and apperantly as soon as they recieve your transfer out for then you wont pay the quarterly fee as it takes 4-6 weeks to transfer out.

so personally i would give it a couple weeks and see if any one has any luck. at which point BEFORE 1st of july transfer out to another provider (some of which offer to cover the transfer out fees!) but submit a complain before transfering out but do it any ways and then reclaim the fees.

steps:
1) message them using their internal mailing system, they will reply within 24 hours according to their policy (maybe they will change that too!)
2)if it gets rejected file a complaint to the financial ombusman
3) if that fails then appeal it

also another common trick is to send a written letter to the CEO of the company. They take that VERY personal usually and who knows you may be able to claim distress and inconvenience and get some extra cash!

jimmyjones_2

OneADay wrote: »

What a bunch of ....

Bunch of ....s indeed!

I have just started out passive investing with regular monthly payments and my balance is currently around £900. The ....s new charge will increase my blended annual charge from 0.37% to 8.93%.

What is even more frustrating is that new customers get the fee waived until they have invested £5,000 but because I am only a relatively new customer so the fee applied straight away.

My current plan is to transfer to Hargreaves Lansdown, investing in a single Vanguard Lifestrategy fund. I started a thread here about where I should transfer.

I will be transferring asap to avoid the fees but want to make a complaint - I will watch this thread with interest.

rail.link

Anybody know if the account can be closed online, or will a written request be required ?

Also, any alternatives for monthly funds investment with no iii style charges ?