Best Invest announce RDR pricing structure

TCA

koru wrote: »

I am an existing client who will be paying a lot more if I stay with them. I e-mailed asking about exit fees and they replied saying, simply: "Of course if you decide to transfer away from our Platform there will be no exit fees levied."

I'm a cynic and a great believer in asking several different employees the same question to see what comes back. It could be true of course (in which case I might make use of it), but I wouldn't be surprised if someone is confusing account closure charges and transferring of holdings to another broker.

The FAQ's say this:

What can I do if I do not want to accept these changes?

Although these changes are required as a result of new Rules from the FCA, we have tried to be as fair to all our clients as possible; to the extent that the vast majority of our clients will be better off in the charges they pay going forward. We do recognise, however, that there will be some clients who, because of the charges or some other reason, would not like to proceed with these changes. In respect of this new charging structure we would firstly remind clients that there are a number of actions you can usually take (go paperless, reduce holdings of more costly investments etc.) to reduce the impact of any changes in charges. Ultimately, however, you do have the right under the terms and conditions you hold with us to close your account, although we hope you will talk to us first to see if there is anything we can do (for example, it may be that a conversation to clarify and explain these changes more fully might assist?). We would also add that all other Financial Services firms are subject to the same FCA Rules as us and therefore will be introducing similar changes themselves.

If, however, you do want to proceed to close or transfer your account as a result of these changes please contact us and we will endeavour to help ensure that process is completed as smoothly as possible and at minimal cost to you as a client.

koru

I'm also a cynic, but that's why I prefer to have these discussions with companies like BI in writing, so there can be no scope for them to wriggle out. Having got the answer I hoped for, I don't even want to give them the chance to change their minds. (But obviously anyone else can't rely on what I was I told, so should ask BI themselves.)

Incidentally, that FAQ does not say they will not waive exit fees. It talks about doing the exit at minimal cost, which, whilst not an unambiguous promise to waive exit fees, does not refuse to waive the fees, either.

TCA

Indeed, but not sure I would be relying on an email. Their phrasing "Of course if you decide to transfer away from our Platform there will be no exit fees levied" isn't as clear as it might be. They might just be taking about waiving ISA closure fees.

gadgetmind

BestInvest have confirmed that I can simply swap our Vanguard trackers for the (roughly) equivalent ETFs and remain on the custody charge. They have also told me that this is per customer so we can move our ISAs and SIPP from HL to BestInvest and make use of the custody fee charging structure.

Sweet! This could even save me money as the ETF costs are lower but I'll have to rebalanced less often to avoid trading costs.

koru

TCA wrote: »

Indeed, but not sure I would be relying on an email. Their phrasing "Of course if you decide to transfer away from our Platform there will be no exit fees levied" isn't as clear as it might be. They might just be taking about waiving ISA closure fees.

My query asked if they would waive "the exit fees for transferring my SIPP and the funds within it", so I am satisfied that it is clear.

Having said that, Gadgetmind raises an interesting possibility of switching to ETFs instead. This would cost me just £100 pa for my SIPP, which is cheaper than even Interactive' fixed fee for SIPP.

gadgetmind

It's £100+VAT, so £120.

For regular investments, drop these into a low-fee tracker and then move everything into the ETFs during your annual (or whatever) rebalance to minimise trading fees.

gadgetmind

I'm still researching ETFs. but these are already on my list.

VWRL - All World, TER 0.25%
VUKE - FTSE 100, TER 0.1% (yes!)
VFEM - Emerging markets 0.45%
MIDD - FTSE 250, 0.4%
ISP6 - S%S 600 Small Cap

I already old SLXX and ISXF, which are corporate bonds.

TCA

gadgetmind wrote: »

They have also told me that this is per customer so we can move our ISAs and SIPP from HL to BestInvest and make use of the custody fee charging structure.

The plot thickens. I thought from their FAQs, that the charging was per account.

How will my custody fee be taken?

From 1 March, the custody fee, which is remaining at the same existing flat rate, will be taken on a monthly basis and will form part of your overall monthly charge. This means that per month the amount you will pay for holding equities will be:

General investment account: £4.16 per month
ISA and Junior ISA accounts: £4.16 per month
SIPP account: £8.33 per month

koru

gadgetmind wrote: »

It's £100+VAT, so £120.

For regular investments, drop these into a low-fee tracker and then move everything into the ETFs during your annual (or whatever) rebalance to minimise trading fees.

Where does it say there's VAT on top? No VAT mentioned here: http://www.bestinvest.co.uk/clear-pricing/tariff

gadgetmind

TCA wrote: »

The plot thickens. I thought from their FAQs, that the charging was per account.

Yes, fee is payable per account, but qualifying for the old custody fee rather than new platform fee is per customer.