Hargreaves Lansdown "playing hardball"

Lokolo

teepee83 wrote: »

I only have a small pot of money invested in S&S ISA at the minute with HL, but will probably end up moving it to Charles Stanley direct (I only hold 1 managed fund now - will be expanding shortly). I think they are going to be far cheaper than HL.

I know the RDR has got a lot of bad press, but I must admit, this has made me think a lot more about charges so it is obviously doing some good, even if it has not been perfect.

I have already contributed a small amount to the ISA this year and I know that normally you can only contribute to one S&S ISA per year. Therefore if I do end up transferring, will I still be able to add more contributions once it is with another provider? (or does the 1 ISA per year rule apply)? This would affect my decision as definitely want to contribute more this tax year and don't want to be 'frozen out' by transferring.

Yes you can, its the same with Cash ISA. If you deposit £1000 in ISA, transfer it all to another provider, you can continue to use the rest of your allowance with the new provider.

However, you should keep a record yourself so you know exactly how much you have deposited, rather than trust the transfer process to remember.

System

Lokolo wrote: »

Yes you can, its the same with Cash ISA. If you deposit £1000 in ISA, transfer it all to another provider, you can continue to use the rest of your allowance with the new provider.

Excellent thanks - just a shame that HL will charge me £25 for the privilege! (I know it could be a lot worse if held a few funds)

jimjames

teepee83 wrote: »

Excellent thanks - just a shame that HL will charge me £25 for the privilege! (I know it could be a lot worse if held a few funds)

Not if you transfer it as cash. It is then moved across with no fees applied.

jimjames

Lokolo wrote: »

To be fair, the article has said the information is from Barclays analysts so HL could still surprise us yet.... :rotfl:

It may also be a typical misleading PR exercise by HL in the same way the govt leak worse stories before the event so when the actual details are announced and isn't as bad it is greeted as good news.

So we may be looking at something like 0.25% to 0.5% rather than the 0.35%-0.7% that seems to have been leaked.

System

jimjames wrote: »

Not if you transfer it as cash. It is then moved across with no fees applied.

Very good point, thanks.

I would be slightly uneasy with this as the fund I hold hard closes on January 22nd (no prizes for guessing which). If the transfer process dragged on I would not be able to get back in to this fund. Not sure how long these things take (plus they could close the fund earlier I suppose!)

Lokolo

https://docs.google.com/document/d/1jaZ7SctoiShcIjoNEso8us2GU000zd8WDDM8B8QywZE/edit?usp=sharing

Work in progress.... I plan to use it for my own benefit to work out which platform I am going to go for.

richyg

As a client of HL in Vanguard funds with a £2 per month fund and a fund provider that refused to rebate charges to the platform out of the low TER of .32% it has clearly been subsidised by cross funding.

However whilst I am sure I will be charged more in the short term I hope that there will be an understanding that 0.7% or .9% when growth may only be 3% moving forwards are not insignificant figures ie they are really 25% or so of any growth and there may be a move that encourages either lower charger or new lower cost providers.

If you dont think its possible then looks USA where cost over .2% are classed as expensive to some and which some even class as outrageous seeking charge as low as 0.07%. Heres hoping. Take a look at https://www.bogleheads.org

R.

gadgetmind

richyg wrote: »

it has clearly been subsidised by cross funding.

Naaaa.

Hl add the square root of sweet FA of value regards holding of a tracker or two on their platform, and keeping their web site fed and watered isn't exactly rocket science.

pip895

teepee83 wrote: »

Very good point, thanks.

I would be slightly uneasy with this as the fund I hold hard closes on January 22nd (no prizes for guessing which). If the transfer process dragged on I would not be able to get back in to this fund. Not sure how long these things take (plus they could close the fund earlier I suppose!)

Worth paying the £25 transfer fee on that one surely - Its made you enough over the last few months

System

pip895 wrote: »

Worth paying the £25 transfer fee on that one surely - Its made you enough over the last few months

My thinking exactly, plus even if manage to sell and re-buy within the time frame, being out of the market a few weeks could cost me a whole lot more than £25 (could save me of course if the markets fall!).