Leaving HL without transfer charges

Mattygroves2

masonic wrote: »

Looks to me like that does not cover the custody fee for shares, which has been set at 0.45% for as long as I can remember. 0.25% is still expensive for shares, since there is no charge to hold these elsewhere, and you'll pay no more if you decide to move them to II.

HL don't charge a custody / platform fee for shares outside an ISA wrapper so there would be no 0.25% charge on them anyway. The charge for shares within an ISA wrapper is capped at £45 so if you have a large holding it isn't too bad and as good as (if not better than ) iii if you only have shares/ ITs/ ETFs /gilts/ bonds and don't trade.

masonic

Mattygroves2 wrote: »

HL don't charge a custody / platform fee for shares outside an ISA wrapper so there would be no 0.25% charge on them anyway. The charge for shares within an ISA wrapper is capped at £45 so if you have a large holding it isn't too bad and as good as (if not better than ) iii if you only have shares/ ITs/ ETFs /gilts/ bonds and don't trade.

Thanks, I had completely forgotten unwrapped shares were treated differently than those in an ISA. I don't think that would change my advice to frugalmacdugal, who will already be paying the £80 platform fee at III and will pay no more as a result of moving the shares. However, it is a good point that others with unwrapped shares and no ISA/SIPP might be best sticking with HL if they trade infrequently.

liquidityftw

sorry kfsimpson if i have caused confusion - it is complex and the devil is indeed in the detail.

Fundamentally all platform providers do not have an identical list of funds they offer. Often very similar but not neccessarily identical and it certainly is not every possible fund at every provider.

In the particular case of the superclean HL funds these are described by HL as being exclusive to them - so by definition no other provider can hold them so a simple in specie transfer is just not possible.

i am trying to discover if there is a way around this - no joy yet - if i get one will post back here. In the meantime i am holding off on any conversions to exclusinve funds.

One point to note HL conversions are going to be a bulk affair in June some time so even if you instruct now nothing will happen till then. There is also a switch option where there is a sell of the old type and buy (the next day i think) of the new but this does open one up to CGT outside of a tax wrapper; a bid offer spread if thefund has one and a day or so out of the market. sorry but digging in to the detail will be needed - there is soem specific info on te HL sire if you dig around which may help.

As far as switching to cash and transerring is concerned this may be good it may not be. My suggestion would be to do the sums and comapre the possible costs of transactions and being out of the market for a period with thecost of the in specie exit fees - may help you to decide. Finally other posts here suggest the exit fees would be waived anyway if you press hard enough.

naedanger

bossymoo wrote: »

I have a HL ISA and fund and share acc. Both hold a variety of funds. It says the exit fee is per holding - does that mean per fund?

Yes, and if you hold the same fund in both your ISA and your fund and share account the £25 charge will apply to each account, assuming you transfer both accounts. The £25 charge also applies to any shares you hold i.e. you pay £25 for each shareholding you transfer in specie.

If so it would cost me a small fortune to transfer out.

Well you could send HL a formal complaint regarding the unfairness of the charge assuming the reason you are transferring is that you are unhappy with their new charges. Everyone who has done this has so far been given the chance "as a gesture of goodwill" by HL to transfer without having to pay exit charges. (Note you do need to use the phrase "formal complaint" otherwise they may simply repeat that their standard exit charges apply.)

I also wanted to bed some from the F&S into the ISA come the new tax year.

If it is in the new tax year then you could do so after the transfer. If you want to make any rearrangements this tax year then you are probably best doing so before starting a transfer as this is unlikely to be completed before the end of this tax year.

bossymoo

Oh crikey. Many thanks. I will get my @$$ in gear!

naedanger

bossymoo wrote: »

Oh crikey. Many thanks. I will get my @$$ in gear!

I have, on another thread, just suggested wording that may be suitable for a secure message. I have pasted it below.

Subject: Formal Complaint: FAO Senior Client Services Manager

I wish to complain that it is unfair introducing new/increased charges (e.g. the new probate charge and new exit charges) without giving customers an opportunity to exit without charge. I now understand that this is also against regulatory guidance e.g. from the OFT and that you have been waiving exit charges for customers who formally complained.

As a result of the increased charges I no longer want to remain with HL and I expect you to waive my exit and transfer fees, just as you have done for others.

If you refuse, and charge any fees on exit or transfer, then I intend to pursue this complaint via the Financial Ombudsman Service.

I look forward to an early response.

hyposmurf

bossymoo wrote: »

Oh crikey. Many thanks. I will get my @$$ in gear!

Also check out Snowman's spreadsheet, don't have link to it at the moment, but its on the threads on this forum.

Also have a look at this site for comparison:

http://monevator.com/compare-uk-cheapest-online-brokers/

and also some platforms are offering to cover your transfer costs, such as Bestinvest up £500.

https://select.bestinvest.co.uk/help-forms/transfer-investments/transfer-in-exit-charge-refund

utockin2me

Just seen a very disturbing post (No.577) on monevator.com compare uk cheapest online brokers thread,
re HL to II ISA switch gone horribly wrong.
Nightmares all round tonight?

masonic

utockin2me wrote: »

Just seen a very disturbing post (No.577) on monevator.com compare uk cheapest online brokers thread,
re HL to II ISA switch gone horribly wrong.
Nightmares all round tonight?

This one?

Kevin March 21, 2014 at 10:16 am
NOT HAPPY WITH HARGREAVES LANSDOWN. Had arranged to switch ISA from Hargreaves Lansdown to Interactive Investor. Just found out that Hargreaves Lansdown have sold all my units in ISA and returned as cash to my bank when instruction was clear – transfer stock and cash to Interactive Investor.

Wow! That's incompetent. Presumably they will be able to correct that mistake and the ISA status of the money will not be lost, but that would be very distressing.

le_loup

Gis a link mate.