Leaving HL without transfer charges

Sillychuckie

Nixter wrote: »

I doubt the fools at iii would ever notice, but surely HMRC would sooner or later find out.

Perhaps. I don't know. I suspect they rely on the companies that administer the various schemes to enforce the rules which they apply.

However, if I'm wrong, the penalties are harsh. Best case is I just pay back the tax I saved with the pension contribution. Worst case, they apply an extra penalty to total 55%.
If I didn't say anything and left it a few years (perhaps transferred the ISA to a few different providers in order to confuse the paper trail), I doubt they would ever know. I could leave it 6 years even, at which point I think they can't penalize you (not sure if that applies in pension commutation). Tempting...

BUT - I won't. Don't want to risk it or get on the wrong side of HMRC. Just a warning to others - be sure that the funds go where they are supposed to. I'll give III a little longer to see if they notice the mistake, but then let them know.

Nixter

Sillychuckie wrote: »

I'll give III a little longer to see if they notice the mistake, but then let them know.

I would send them a secure message marked as "official complaint". They don't seem to prioritize messages which aren't complaints anymore.

I've been waiting weeks for non urgent queries while the official complaints seem to get answered a bit quicker.

lejog2003

Sillychuckie wrote: »

I'm transferring a SIPP and an ISA from HL to II at the same time.

As part of my HL->II transfer, one of my big HL SIPP holdings was credited to my II ISA (SIPP to ISA).

I haven't said anything yet. The thought of being able to get at these funds is quite appealing, though I'm sure HMRC would take a dim view of it (50% tax surcharge).
I'll almost certainly let them know - its too big a risk not to.
Any thoughts?

Six and a half months after the transfer of my SIPP in drawdown from HL to ATS, I have a similar dilemma. HL have informed ATS correctly of the maximum pension I can draw this year under GAD rules, but have informed ATS that I took no pension before the transfer, when I in fact took several thousands of pounds.

I instructed ATS to pay me the maximum amount remaining in my GAD allowance over the next 4 months. I received a letter this morning telling me they are going to pay me several thousands of pounds more from my pension than I am legally entitled to. Quite what sanctions I might face if they do this, I am unsure (and HMRC may just collate figures from HL and ATS to police this).

So like you, I had better tell them.

ViksB

Is it worth complaining to an official organisation I guess FSA about the length of time these transfers are taking. I am getting incredibly fed up with it, but other than complaining to HL which I have done I am getting nowhere fast.
Is there anything else I can do?

lejog2003

ViksB wrote: »

Is it worth complaining to an official organisation I guess FSA about the length of time these transfers are taking. I am getting incredibly fed up with it, but other than complaining to HL which I have done I am getting nowhere fast.
Is there anything else I can do?

You can try a complaint to the Ombudsman about a breach of FCA rules see post #1183 if you don't receive an adequate reply from HL. Before the Ombudsman will look at a case you have to have raised a formal complaint with HLand received their "final response".

Edit: Contact the Financial Ombudsman - they are quite happy to talk and help you before taking up a case officially.

Edit #2: Also see this post about what HMRC/FCA say out you being locked out of trading if your funds disappear into the black hole of a funds manager for over 30 days and are therefore not tradeable.

zedray

I've 'lost' over 90% of my ISA.

I started my transfer from HL to II at the end of Feb, and my ISA has been in limbo ever since. During May, 90% disappeared from HL (the other 10% arrived with II end of April). II told me at the end of May the money was with the fund manager (M&G), and would take another two weeks to transfer.

However, we're now six weeks further on, and the funds are still missing. Is this a cause for complaint to the FCA?

xylophone

However, we're now six weeks further on, and the funds are still missing. Is this a cause for complaint to the FCA

Have you made a formal complaint to II?

zedray

I secure messaged II about it at the time, late May, but was prepared to leave it for a while given the chaos and delays that everyone seems to be facing. Now my patience is starting to run thin.

I don't know if the delay lies with II or M&G.

masonic

zedray wrote: »

I don't know if the delay lies with II or M&G.

Have you also considered the possibility that the hold-up is due to a clerical error by HL?

zedray

I hadn't considered it but it's certainly possible I suppose. How do I find out where the hold-up is? II told me the hold-up was with M&G, but that could have been an assumption on their part from me mentioning M&G to them.

Is it best to secure message HL at this stage and check the fund has been correctly transferred to M&G? Presumably I don't want to raise a formal complaint until I know which of the three the hold-up is with?