Hargreaves Lansdown charge 0.45% pa - Alternatives?

yatinsardana

Absolutely ridiculous.. The company has put itself in a mess and don't know how to clean it up now. With no concrete guidance about the limit of negotiation and complete variability in their responses to different individuals, it's lost its reputation and will find it hard to recover from it. Even if prices were to come down, are the lost customers ever going to come back to HL? I think not

masonic

yatinsardana wrote: »

Absolutely ridiculous.. The company has put itself in a mess and don't know how to clean it up now. With no concrete guidance about the limit of negotiation and complete variability in their responses to different individuals, it's lost its reputation and will find it hard to recover from it. Even if prices were to come down, are the lost customers ever going to come back to HL? I think not

But wasn't it worth it to stop some customers cross-subsidising others? :rotfl:

yatinsardana

HL is the best thing that ever happened to CSD, II and iWeb

ScarletBea

Thanks for your replies - yes, I think I must have misunderstood the capped fee now, but the difference to what I have there is only around £5, so not that much (I don't have much there), and I agree that everyone's situation is different. I guess I just hadn't seen this clearly stated in other threads, that's why I posted.

LeifGR

I am more or less determined to leave HL but I am a bit confused about how much the switch is going to cost me. I only have a stocks & shares ISA with HL so that is what I am moving. Cavendish state on their web site that

If you are currently on a platform that will charge you then you have a few options:

• You can choose to re-register your funds and pay the exit costs.
• Transfer your funds and therefore be “out of the market” for part of the transfer process but this process will, in the majority of cases, be quicker than re-registration and will only incur the “close ISA account” charge. For non-ISA the sale is chargeable to Capital Gains Tax (CGT).
• Move your funds into one fund or a small number of funds on your current platform (please be aware that some platforms have a switching charge) and then complete re-registration which will cut down your exit costs considerably. For non-ISA the sale is chargeable to CGT.

By alternative no.2 ("Transfer your funds..."), do they mean selling the funds and closing the account, transferring cash and then buying funds on the new platform? So I would incur any transaction charges for those purchases on the new platform?

They also state HL's fee for in specie ISA transfer as £30 per fund - am I right that this is actually £25/fund?

Thanks for your help!

masonic

LeifGR wrote: »

By alternative no.2 ("Transfer your funds..."), do they mean selling the funds and closing the account, transferring cash and then buying funds on the new platform? So I would incur any transaction charges for those purchases on the new platform?

Yes, you would end up with cash at the new platform, so would need to pay any dealing charges to buy the funds on the new platform.

They also state HL's fee for in specie ISA transfer as £30 per fund - am I right that this is actually £25/fund?

It's £25/fund and you should be able to get that charge waived if you complain to HL.

naedanger

LeifGR wrote: »

I am more or less determined to leave HL but I am a bit confused about how much the switch is going to cost me. I only have a stocks & shares ISA with HL so that is what I am moving. Cavendish state on their web site that

By alternative no.2 ("Transfer your funds..."), do they mean selling the funds and closing the account, transferring cash and then buying funds on the new platform? So I would incur any transaction charges for those purchases on the new platform?

They also state HL's fee for in specie ISA transfer as £30 per fund - am I right that this is actually £25/fund?

Thanks for your help!

I believe HL's in specie charge is £25 per holding i.e. per fund and per equity stock.

If you send a formal complaint to HL then within about 5 days (but I would allow 7) they will probably agree to waive all their exit fees (both existing ones and the new ones they are bringing in). (As far as I am aware, they have for done this for everyone who has formally complained so far.)

If you wish to complain then suggested wording to use in a secure message is pasted below. (Note if you just ask them, rather than complain formally, they are likely, based on their past practice, to refuse.) There is a strong argument that it is unfair to charge exit fees when it is the supplier (here HL) that is unwilling to continue the contract on the originally agreed terms. (I mean why should you pay when it is them that want to change the terms!)


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.

LeifGR

masonic wrote: »

It's £25/fund and you should be able to get that charge waived if you complain to HL.

Thanks Masonic! Is this still the best-practice letter to send them? I have spent close to two hours now trawling that thread and my eyes are starting to hurt...

LeifGR

naedanger wrote: »

If you wish to complain then suggested wording to use in a secure message is pasted below.

Thanks naedanger...our posts crossed in the digital realm!

naedanger

Either that long version or the much shorter version posted a post or two above should work. In practice HL seem to be agreeing to any wording provided it is clear you are complaining formally.

Yes, lots of posts are crossing, which is fine as they all seem consistent.