Iii

Nocto

Has anyone tried contacting FNZ directly?

Sillychuckie

My latest II gripe is that they are trying to take their annual fee using cash from my SIPP transfer from HL.
(rather than charging my registered debit card etc...)

They are actually refusing to apply the cash they received from HL to my SIPP, and are just keeping it for themselves (and crediting it against the fee I owe them).

I'm actually surprised they are even allowed to do this, since it seems like it is equivalent of accessing my pension before retirement (to pay for their services).
Even if they were, I wouldn't be happy for them to do so, because SIPPs have annual allowances, and I'd rather pay the fees using sources outside of the SIPP. What is the point in registering a linked debit card, if they do this?

I just sent them a message demanding that they apply the cash from HL to my SIPP, and not 'hold it' to cover their payments. Usual threats of FOS, but this time, I'm adding HMRC into the mix.

I remember HL used to take their fees from an ISA I had (before they improved support for taking it from a 'trading account' so as not to eat into your tax free allowance). However, I don't think I ever remember them taking fees from my SIPP.
Maybe I'm wrong - can anyone confirm?
Either way - it would be nice to be given the option.

SC.

Edit: After further thought, I guess having II take their fees from the SIPP is a more tax efficient way of doing it. Assuming I'm not more concerned about filling my allowance each year, its better that they take £200 from a SIPP, than from my current account (since then HMRC pay for some of it).
I'm just not 100% sure if its legit doing so.
They have asked me to top my SIPP up with more cash to cover the rest of the fee.

Any thoughts from anyone. Is this all OK?

masonic

Sillychuckie wrote: »

Any thoughts from anyone. Is this all OK?

It's really no different than the pre-RDR arrangement, where the fee was collected from within SIPPs through higher fund management charges. As you mention, it is the most efficient way to pay.

I know the order of preference for fees is trading account first, then ISA, then debit card, but I'm not sure where SIPPs fit in. It would be best for customers if SIPPs were raided first, providing what II is doing is not contrary to HMRC rules, which one would have to assume they'd have checked.

Allots

Nocto wrote: »

Has anyone tried contacting FNZ directly?

Yes, I contacted FNZ last week and was eventually transferred to Tina Gould 'Head of Settlements' at FNZ. She told me that she would investigate why dividends had not been transferred to II and would get back to me. I waited a couple of days and as she had not been in contact I called her again. I was told that she could not discuss the issue with me as I was not a client of FNZ ( the usual data protection cop out that financial institutions use to avoid answering any general or specific questions!) and needed to contact II.

Allots

masonic wrote: »

I believe their official line would be that they don't promise to credit dividends within a specific timeframe (I don't see anything about 10 days in their T&Cs). Of course they also have an obligation to treat customers fairly, which is where formal complaints and the FOS come in.

This was the secure message that I received from II when I queried their policy on settlements of dividends

'Our policy on dividends is that we have a regulatory obligation to pay these to you within 10 working days of us receiving the payment, we do however of course aim to have these added to your account at the earliest possible date.'

JenniferK

Allots wrote: »

This was the secure message that I received from II when I queried their policy on settlements of dividends

'Our policy on dividends is that we have a regulatory obligation to pay these to you within 10 working days of us receiving the payment, we do however of course aim to have these added to your account at the earliest possible date.'

But what II mean by that is pay within 10 working days of them receiving the money from FNZ - not the funds actual dividend payment date.

I now have dividends that are over a month late. It is now with FOS. I am also considering a Moneyclaim against II.

Allots

JenniferK wrote: »

But what II mean by that is pay within 10 working days of them receiving the money from FNZ - not the funds actual dividend payment date.

I now have dividends that are over a month late. It is now with FOS. I am also considering a Moneyclaim against II.

You are indeed correct however, as it II that have appointed FNZ as Nominee platform they have an obligation to sort out the problem on a timely scale and not rely on "we don't have the funds so we cannot pay you". They have caused the problem and they must address it urgently. I too will be contacting the FOS as this situation cannot be allowed to continue.

masonic

JenniferK wrote: »

But what II mean by that is pay within 10 working days of them receiving the money from FNZ - not the funds actual dividend payment date.

If it is a regulatory requirement, then it will be the regulator who decides how the requirement should be interpreted. It's hard to believe it would not be interpreted as 10 working days from the date the dividends are received by the nominee.

JenniferK

masonic wrote: »

If it is a regulatory requirement, then it will be the regulator who decides how the requirement should be interpreted. It's hard to believe it would not be interpreted as 10 working days from the date the dividends are received by the nominee.

This is what II have told me - 10 working days from payment by nominee (FNZ).

Allots

I contacted the FOS yesterday enquiring about the regulations for settlements of dividends by platforms to investors. The FOS pointed me to the FCA who told me that there are no regulations governing this (which surprised me!). The FCA said that it was down to the terms and conditions set out by II and to lodge a formal complaint to II. Should I not receive a satisfactory response to my complaint within 8 weeks, then I could lodge my complaint with the FCA. Does anyone have any comments on this?