Leaving HL without transfer charges

naedanger

riccaricca wrote: »

Will it make any difference that I haven’t decided who I'm going to transfer to yet?

No. But they will only give you a limited period of time in which to instigate the transfer. Therefore once HL reply to your complaint you need to be ready to submit an application to a new provider quite quickly.

Doctor_Who

I received my letter by secure message yesterday. As others have said you need to get to nearly the end of the first page to find the salient information about them offering to waive fees and not apply new charges to your account. They have given me until the end of March "for transfer requests to be received", from everything I've read I assume the transfers will take longer. My transfer forms were sent late last week!

I'm mostly in funds so my HL fees would probably have reduced after 1st March.....but by nothing like switching to a fixed-fee platform.....I'm going to II. In my letter I included a link to this forum and said I was unhappy that some clients were being offered fee-free exits whilst others were still being asked to pay (my first request for them to waive fees was turned down) and how all of this is contrary to RDR. HL should waive exit fees for everyone who wants to transfer due to their changes in fees, we shouldn't have to send them formal complaint letters.

hyposmurf

Do you need to to get a final response from H&L before you issue a complaint?

gadgetmind

I just got a response and it's pretty much what others have got but with something odd at the start.

My complaint started with "I see that you have now removed the explicit charge for Investment Trusts, which means I can leave my unwrapped holdings with you. Thanks for seeing sense on this."

Their response was -

"Your comments have been referred to me for investigation. It is my understanding you are unhappy that Hargreaves Lansdown will start imposing a fee for holding Investment Trusts within your Vantage Fund & Share account and feel we should waive our transfer out fee as a result. I am sorry to learn of your disappointment with our service in this instance. I have reviewed your concerns and ma pleased to provide our response for your consideration.

As part of the Vantage Service changes, we advised clients that from 1st March 2014 we would amend the way in which we charge for investment trusts. After a review of the changes, and feedback from our clients, we have decided to reverse this proposal."

Err, what? It looks to me like they aren't even bothering to read complaints (with "COMPLAINT" in bold in the title!) and are instead just sending out boiler plate responses.

In those cases where HL do get hauled before the FOS then I suspect they will get ripped to shreds, legal advice or no legal advice.

Rollinghome

gadgetmind wrote: »

In those cases where HL do get hauled before the FOS then I suspect they will get ripped to shreds, legal advice or no legal advice.

Which is why they tried to deal with the first complaints without acknowledging that they were complaints or giving details of their complaints procedure and why they were determined not to confirm that their reply was a "final response" when requested.

They'll do whatever it takes to not let it get to the FOS.

riccaricca

Thanks for the response "naedanger". I'm researching the best company to transfer to.
As I've never transfered any funds before, will the funds have to be sold and then bought again in the new company or are they moved as units?
I'm worried as they are ISA's. Also if they have to be sold and then reinvested would that not lose money?

Rollinghome

riccaricca wrote: »

Thanks for the response "naedanger". I'm researching the best company to transfer to.
As I've never transfered any funds before, will the funds have to be sold and then bought again in the new company or are they moved as units?
I'm worried as they are ISA's. Also if they have to be sold and then reinvested would that not lose money?

When funds are re-registered, i.e. transferred in specie, they should remain just as they are and in the same class with no need for selling, provided of course they offer the fund.

If you remain undecided you could consider Fidelity which although unlikely to be the cheapest has no transfer out fees so you could reconsider when the dust settles.

colalba

naedanger wrote: »

Article in the Telegraph regarding ISAs:

http://www.telegraph.co.uk/finance/personalfinance/investing/10639076/Time-for-an-end-to-fund-shop-exit-fees.html

A spokesman [for the FCA] said: “We are discussing concerns with the industry that certain terms and conditions in contracts such as high exit charges could deter consumers from transferring their investments and hinder competition.”

What a pathetic response from the FCA, of course the exit fees are hindering competition. It is about time that they as the watchdog just ban them instead of "discussing".


It is crazy customers have to make individual complaints, instead the regulators should be stepping in and protecting the consumer.

jamesd

It is worth noting that HL has changed its tone and that discussions are ongoing. Much easier and faster for all if the FCA can just persuade the major players to change their practices rather than spending a couple of years on consulting and rule-making.

All regulators have their flaws but I think that in this area and quite a few others the FCA is off to a pretty good start on its new competition-related role, as well as others.

naedanger

hyposmurf wrote: »

Do you need to to get a final response from H&L before you issue a complaint?

Just send your complaint to HL marked "OFFICIAL COMPLAINT".

If you do this then HL will tell you what you need to do next. However there is a reasonable chance you won't need to do anything else as they may will agree to waive their exit charges with their first reply (since they seem to be doing that now).

If after receiving their reply it is unclear to you how to proceed then post back here.