Hargreaves Lansdown "playing hardball"

blizeH

Oops, just got half way through the Cavendish signing up process before realising 1) they don't let you hold funds outside an ISA and 2) they don't have the Vanguard funds listed

Means I can't transfer my ISA (Vanguard) and I can't transfer my other funds outside the ISA either.

Rollinghome

blizeH wrote: »

Oops, just got half way through the Cavendish signing up process before realising 1) they don't let you hold funds outside an ISA and 2) they don't have the Vanguard funds listed

Means I can't transfer my ISA (Vanguard) and I can't transfer my other funds outside the ISA either.

You can certainly hold funds there both inside and outside of an ISA in exactly the same way as anywhere else. If you wanted to move funds outside of an ISA you might be better to sell the fund and buy it again on the same day with your new provider in order to avoid paying HL's £25 per fund transfer fee - do your sums if any of the funds you hold are dual priced with a spread or charge a dilution fee.

No Vanguard funds on Fidelity as yet though that could change and there are other trackers including HSBC's etc. However if HL's platform fees are around 0.7% post RDR2, as forecast by Barclays Research, then holding index trackers using them could be even more expensive than fully managed funds from their competitors - i.e. very expensive and effectively wiping out the benefit of using trackers.

Before you do any transferring, do all your research, including of the various other competing providers, and make sure you fully understand it all.

blizeH

Thank you Rolling, sounds like I have a lot of homework to do, though as you suggested I might be better off waiting to see HL's new fees before doing anything drastic.

To be honest, with my knowledge I wonder if I'm almost better off keeping it simple and sticking with HL regardless

System

blizeH wrote: »

Thank you Rolling, sounds like I have a lot of homework to do, though as you suggested I might be better off waiting to see HL's new fees before doing anything drastic.

To be honest, with my knowledge I wonder if I'm almost better off keeping it simple and sticking with HL regardless

Have you looked at Charles Stanley direct? Clean funds and 0.25% platform fee (under 500k). They also do Vanguard I believe.

Lokolo

dunstonh wrote: »

It is interesting that they are charging what is in effect an initial charge for funds. It is not a dealing charge. That would not breach platform review. Although it is a strange charge to make. However, it may go some way to offset their annual costs. Possibly deterring monthly premiums being made (low profit - even loss making in some cases)

The difference in charge between funds and shares could be due to the funds not having a dealing charge but shares do. So, in effect, you could alternatively present it as £4.95 initial charge with a further £5 dealing cost for direct investments.

Initial charges are allowed. They are just unusual nowadays.

Not sure I agree with you there Dunston. The fee on the PDF clearly says Buying and Selling and therefore surely it isn't an initial charge, but in fact a dealing charge (as it costs to sell).

From my understand of what you say, this shouldn't be allowed?

zagfles

Rollinghome wrote: »

Yes HL offer a "loyalty bonus on that particular fund which effectively makes it 1.25% But you seem have missed that Cavendish/Fidelity rebate 100% of the trail commission on all their bundled funds to make theirs 1.00%. They also offer the clean version X class at 0.75% plus 0.25% platform. (From 16 Dec all funds on offer will be the clean versions.)

HL are cheaper in a SIPP unless it's well over £100,000. Cavendish(/Fidelity) charge £291pa for a SIPP under £150k, which will outweigh the extra 0.25% rebate on the trail commission unless the value is over £116400.

Cavendish also has a £116 setup fee and £150 transfer out charge. HL have no annual or setup charges and have lower transfer out and drawdown charges.

Rollinghome

zagfles wrote: »

HL are cheaper in a SIPP unless it's well over £100,000. Cavendish(/Fidelity) charge £291pa for a SIPP under £150k, which will outweigh the extra 0.25% rebate on the trail commission unless the value is over £116400.

This thread has generally been about ISAs and unwrapped funds which is the core business of both CavendishOnline and HL. I'm quite happy to accept what you say though it doesn't seem to agree with Justin Modray's figures for £100k on Candidmoney which shows HL as being more expensive than almost all those listed. Obviously anyone interested in a SIPP would need to do their own research for their own position although that may not be easy until HL decide to reveal their post RDR2 charges. Cavendish have already announced they will been introducing a new SIPP product before the end of the month.

zagfles

Rollinghome wrote: »

This thread has generally been about ISAs and unwrapped funds which is the core business of CavendishOnline.

Accepted - I was just pointing out the differences for a SIPP, where HL can be good value for lower amounts.

I'm quite happy to accept what you say though it doesn't seem to agree with Justin Modray's figures for £100k on Candidmoney which shows HL as being more expensive than almost all those listed.

It depends on the funds, some have lower trail rebates with HL. I was using the example the PP mentioned. But in general HL's current fee structure does make them reasonable value for smaller SIPP holdings, which is all I'm using them for

Obviously anyone interested in a SIPP would need to do their own research for their own position although that may not be easy until HL decide to reveal their post RDR2 charges.

Yes, they really need to restructure their charges to make them better value for larger holdings, otherwise people may just use them untill their SIPP reaches a certain size and then transfer out.

hyposmurf

Is there any more news from HL on their charges?

WatsonNimrod

No, but I had to ring them about something else and the very helpful person said that they had been told an announcement would be made by the end of Jan.

Not sure if that confirms what they have already intimated.