Leaving HL without transfer charges

gadgetmind

jamesd wrote: »

Customer retention offers are pretty much routine in other businesses, though not usually accompanied by a non-disclosure agreement.

I prefer openness, and when negotiating most deals have a "best terms" clause to try and protect against underhand shenanigans.

The financial services industry has improved but still seems to have a wild-west shoot-from-the-hip feel compared to more mature, regulated and customer-friendly ones.

le_loup

jamesd wrote: »

Customer retention offers are pretty much routine in other businesses

........ and that's why we have become like a Cairo bazar; haggling has become a way of life here and I hate it. The meek are paying for the brash.

bigadaj

gadgetmind wrote: »

I prefer openness, and when negotiating most deals have a "best terms" clause to try and protect against underhand shenanigans.

The financial services industry has improved but still seems to have a wild-west shoot-from-the-hip feel compared to more mature, regulated and customer-friendly ones.

This all of course depends on your perspective.

I've argued against best terms clauses in my work. Ultimately you can't argue against discounts for large volumes or value, it's just the nature of business. You buy one rivet or a million and you're going to pay a different unit price, it's just the nature of the world.

It's slightly different dealing with a retail customer rather than a b2b environment obviously, but it's down to the customer to negotiate the best deal you can. In many ways the flat rate holing fee for trackers charged by hl was ever going to profitable for them, so were back to making a sensible choice of provider selecting a good deal that is sustainable for teh business.

The alternative is to choose the very cheapest, continually mo riot and then change when necessary, obviously taking regard of exit fees. This has been the case for bank savings account for many years so why should investment wrap accounts be any different?

bigadaj

le_loup wrote: »

........ and that's why we have become like a Cairo bazar; haggling has become a way of life here and I hate it. The meek are paying for the brash.

I think you'll find that's life matey.

gadgetmind

bigadaj wrote: »

You buy one rivet or a million and you're going to pay a different unit price, it's just the nature of the world.

I do a lot of mass production in China, so know that volume is king. However, if I'm buying a million rivets, I want them at the same price as the supplier's Chinese mates who are buying the same quantities.

so why should investment wrap accounts be any different?

Well, quite, which is why exit fees should perhaps be the next target for the FCA.

bigadaj

The interesting thing is whilst many complain vehemently about the lack of transparency and slipperiness of hl the system actually works to teh benefit of those who are aware, active and informed.

Similar to the concept of free banking, the system is supported by masses of people not being informed and subsiding those who are.

Maybe it's a question of being careful what you wish for, as total transparency would probably lead to higher costs for the informed and relatively wealthy.

naedanger

bigadaj wrote: »

The interesting thing is whilst many complain vehemently about the lack of transparency and slipperiness of hl the system actually works to teh benefit of those who are aware, active and informed.

Similar to the concept of free banking, the system is supported by masses of people not being informed and subsiding those who are.

Maybe it's a question of being careful what you wish for, as total transparency would probably lead to higher costs for the informed and relatively wealthy.

I agree with your general analysis. However I still wish for a fairer system even at some higher cost personally.

(For example I will have indirect holdings in HL through tracker funds. However that does not mean I want them to maximise profits at the expense of behaving reasonably to their customers.)

I also want banks, utilities etc to behave reasonably. And I think the most effective way of ensuring this happens is through good regulation - which the FCA seem to be failing to provide.

bigadaj

naedanger wrote: »

I agree with your general analysis. However I still wish for a fairer system even at some higher cost personally.

(For example I will have indirect holdings in HL through tracker funds. However that does not mean I want them to maximise profits at the expense of behaving reasonably to their customers.)

I also want banks, utilities etc to behave reasonably. And I think the most effective way of ensuring this happens is through good regulation - which the FCA seem to be failing to provide.

That's very admirable sentiments.

I think the indications so far are that the Fca is a slight improvement on the fsa, though it's still presumably the same people and much of teh same infrastructure.

Maybe you should be shorting hl stock, this might be to your ethical and financial benefit!

naedanger

bigadaj wrote: »

Maybe you should be shorting hl stock, this might be to your ethical and financial benefit!

I see the attraction!

Seriously though, I have seen some people suggest that HL will lose lots of custom over their implementation of their new charges. Whereas I actually think HL will have lost very few customers (less than a few percent). That said over the longer term I think they may struggle to attract customers with their new charges and may see higher attrition in future, as customers see their ongoing charges in pounds. Furthermore they are currently expensive meaning they need high growth to justify their current price. That said I would not underestimate a focused company like HL's ability to compete well. In essence, as ever, I find it hard to judge whether they are a good buy or not. Hence why most of my money is in collective investments.

Doctor_Who

Well.....after receiving the standard letter (by secure message) telling me they are waiving exit fees for any transfer received before 31st March I have now received a letter in the post asking how I would like to pay £125 transfer fee for 5 stocks in my ISA :mad:

Seems the left hand has no idea what the right hand is doing!!