Leaving HL without transfer charges

itm2

Rollinghome wrote: »

They'll be able to get away with it until the FCA's deadline of April 2016 I believe.

My understanding is that if you simply switch then you would pay the initial charge. If you ask for a "conversion" that could take quite a while and you'd not be able to trade the funds during the conversion. Details here http://www.hl.co.uk/my-accounts/how-do-i-guides/convert-my-funds-to-unbundled-units But I've only skimmed through it all so if in any doubt you'd do best to read it all yourself or ask them and get it on record in a pm or email.

You might also want to review whether at the new higher cost it still offers good value. A clean price of 1.20% when 0.75% or less might be expected is quite a price. Another option if you like the company would have been the Ruffer IT but that's a global fund and isn't a direct match and currently sells at a premium of 2.1.

So it looks like I've been shafted.

If I understand it correctly they've reduced the AMC by 0.3% (from 1.5% to 1.2%), but will now be adding a 0.45% custody charge, so there will be a net increase of 0.15% in annual charges? (plus an extra 0.5% in initial charges to switch to the clean class).

Charming....

grey_gym_sock

itm2 wrote: »

If I understand it correctly they've reduced the AMC by 0.3% (from 1.5% to 1.2%), but will now be adding a 0.45% custody charge, so there will be a net increase of 0.15% in annual charges? (plus an extra 0.5% in initial charges to switch to the clean class).

though it would be better to avoid the 0.5% initial charge by converting in june, instead of switching now. you'd pay 0.3% p.a. extra while waiting to convert, but that would only total about 0.1%, instead of 0.5%.

that's unless you're going to leave HL ...

gterr

Although HL agreed, after formal complaint, to waive my exit fees, they went ahead and took them anyway in respect of the in-specie transfer of my Fund and Share account to iii, which is still pending. They took the fee as soon as they received the transfer request from iii, and since there wasn't enough cash in my Fund and Share account to cover it they took cash from my S&S Isa, too.


I complained, and they swiftly agreed to refund the money they'd taken. Time passed - about a week of it - with no action, so I complained again. They said sorry again and refunded me £50, which is less than they took in the first place, and moreover they refunded it all to my Fund and Share account and none to my ISA account. I complained again at the end of last week. So far no response. They've done the same with my husband's accounts.


Those who have negotiated the waiving of exit fees would do well to keep an eye on their account transactions.

andy013

Thanks for the warning gterr. Did the charges just show up under the account administration page?

gterr

andy013 wrote: »

Thanks for the warning gterr. Did the charges just show up under the account administration page?

Log in to your account. Click on the account you want to check, then look at Transaction History. In my case they called it a "Re Reg Fee". If you have more than one account (e.g. a Fund and Share and an ISA) best check them all.

Doctor_Who

All of my HL accounts are showing a "Suggested minimum cash balance" of £5, this is much less than my mother's accounts and she has considerably less invested than I do (I am switching to II, she is staying with HL at the moment). Presumably this £5 figure is the minimum their system will allow since my exit fees have been waived and I will remain on the old pricing structure until the transfer is complete. The £5 figure could be a good indicator as to whether you are on the new or old pricing structure?

le_loup

gterr wrote: »

Although HL agreed, after formal complaint, to waive my exit fees, they went ahead and took them anyway.

Same here; then apologised; still not refunded; yet.
I think they are in an administrative mess because of the numbers getting out.

le_loup

Doctor_Who wrote: »

All of my HL accounts are showing a "Suggested minimum cash balance" of £5

As are mine even though one will have an £8 charge this month. Weird, or what?

simonfitba

I got through a letter today telling me the charges they want to hit me with for in specie transfer, despite already agreeing to waive the charges. Also a questionnaire for "feedback".

One angry call later and they claimed the request for cash was "a mistake". I'll keep an eye on my account balance...

organic_wanabe

simonfitba - DH and I are in the same position. Both our letters want us to tick a box which states:

'I wish to proceed with the transfer in stock. I understand there will be a £25 charge, which includes £25 for each stock being transferred plus any outstanding balance on the account.'

Is yours similar?

Our previous letters state '... we would be happy as a gesture of goodwill to waive our transfer charges, for any request received before 31st March 2014. We shall also ensure our new charging structure is not applied to your account while the transfer takes place.'

I will have to phone them to find out exactly what this £25 is for as we feel no charge should be levied as we are leaving because HL have unilaterally increased charges.