iWeb announce post RDR charges (I think)

Rollinghome

Rollinghome wrote: »

I'm a bit confused on what it is they're offering...

I've contacted them for clarification but have yet to hear back.

Have had a reply from IWeb who say:

"I can confirm that we will not be charging the platform fee on funds purchased through IWeb. All that will be applicable is the £25 opening fee for the account and the £5 dealing charge. I understand that other companies are generically introducing management % based charges to cover the platform fees however, I am assured that we will not be doing so."

Which is surprisingly unequivocal.

Gaaraz

Thank you, that is absolutely fantastic if so... seems almost worryingly cheap though, compared to the alternatives?

TCA

Rollinghome wrote: »

Have had a reply from IWeb who say:

"I can confirm that we will not be charging the platform fee on funds purchas through IWeb. All that will be applicable is the £25 opening fee for the account and the £5 dealing charge. I understand that other companies are generically introducing management % based charges to cover the platform fees however, I am assured that we will not be doing so."[/I

Which is surprisingly unequivocal.

Yes, spoken with some certainty. Wish the comments hadn't been restricted to funds though.....Definitely worth considering.

Rollinghome

TCA wrote: »

Yes, spoken with some certainty. Wish the comments hadn't been restricted to funds though.....Definitely worth considering.

That was because I specifically asked about funds, would assume no change for direct holdings, and I asked twice to make sure there was no ambiguity.

But, if it's correct, then how they'll get the revenue to cover their lost trail and platform fee is puzzling.

TCA

I emailed them yesterday re their separate funds ISA and stocks and shares ISA. Got a reply today saying that the former was being discontinued and investors would be able to buy funds within the latter. This is in line with what Halifax are doing, their Self Select Funds ISA showing an unavailable to new customers on their website. I emailed back to ask for a timescale or whether fund purchase was available already in stocks and shares ISAs.

Re my questions on further RDR changes or platform fees, they only sent me Snowman's original link to their webpage about the recent changes.

Rollinghome

They seem to be in bit of a muddle. My feeling has been that if they are offering such an amazing bargain then then I'd expect them be shouting about it from the rooftops. That's not to say they aren't in a position to offer a very good deal but it's hard to see how they could offer a fund ISA without some sort of on-going platform charge.

TCA

Yes, their website doesn't really inspire confidence either. Functionality aside, it just looks terrible. Bizarre to say it, but I'd pay Halifax's annual charge and higher dealing fees just because their website looks more professional and the fact they charge a platform fee at all just seems more plausible. Only just.

brendon

TCA wrote: »

it's a whitelabel version of Halifax's own product

I'm fairly sure that Halifax owns the company, and it's not simply a third-party whitelabelling.

TCA

brendon wrote: »

I'm fairly sure that Halifax owns the company, and it's not simply a third-party whitelabelling.

Yes, you're right.

http://the-international-investor.com/brokers/iweb-share-dealing

"iWeb was taken over by Halifax Share Dealing in 2003, but has continued to operate as a separate brand. The underlying service is identical, but iWeb generally has somewhat lower costs."

http://www.granitefm.co.uk/about_imiweb.htm?sessionID=%3C!--SESSIONID--%3E

From the depths of the IWeb website:

"Dealing and stockbroking administration services are provided by IWeb. IWeb is a trading name of IWeb (UK) Ltd, owned by Halifax Share Dealing Limited which is part of the Lloyds Banking Group. Registered in England No. 01385075. Registered Office: Trinity Road, Halifax, West Yorkshire, HX1 2RG. Authorised and regulated by the Financial Services Authority and a Member of the London Stock Exchange. Halifax Share Dealing Limited. Registered in England No. 3195646. Registered Office: Trinity Road, Halifax, West Yorkshire, HX1 2RG. Authorised and regulated by the Financial Services Authority, 25 The North Colonnade, Canary Wharf, London E14 5HS."

TCA

TCA wrote: »

I emailed back to ask for a timescale or whether fund purchase was available already in stocks and shares ISAs.

IWeb are certainly quick enough at replying to emails. Got a reply from Friday's query first thing this morning. I also asked whether they had any plans to increase the range of Vanguard offerings:

"I am unable to provide you with a definitive list of funds for a particular fund manager. However, we are able to trade some Vanguard funds. I recommend that you log in online, go to Trading and search via fund manager on the trading page for funds. From here, you will see that we offer some funds offered by Vanguard. I am unable to confirm whether or not we will be able to trade all Vanguard funds as all funds need to be checked by management before we are able to trade them.

Funds are already able to be traded through the stocks and shares isa. Funds ISA's are no longer able to be opened and the approximate end date is going to be around the 31st March."


The first part of their reply seems a bit odd, given Snowman provided a link to available funds (by manager) in his opening post. And I don't get the "all funds need to checked by management" comment. As I'm not an IWeb customer I can't log-in, although I'm not sure that would make any difference anyway.