Transfering ISA from one broker to another

sjrben

Transferring a Stocks & Shares Fund ISA from one broker to another - can be a nightmare process that takes months.

Why did I do it? I moved to a broker that didn't charge a platform fee (most charge an annual % platform fee on top of the annual fund management fee). Moving to a broker with zero platform fee works well for me as I have tracker ISAs I don't really change much & plan to leave to grow for the long term.

However I started this process 6 months ago and still have not got all my ISAs transferred. The outgoing broker (Best Invest) blames the new broker (iweb) and vice versa, I chase them on a regular basis and I've complained to both brokers, and if it's not resolved soon I will complain to the FCA.

This process is not like switching bank accounts - perhaps some regulation is needed here? Maybe a campaign for Martin to take up?

Also fees to transfer out vary from zero (eg Fidelity) to some huge costs (eg Best Invest £25 per fund + £50 closure fee + VAT).

I do object to these fees when the service is awful.

You need to do the maths, e.g. a 1% platform fee on a £10,000 ISA investment is costing you £100 a year, where as 0.2% platform fee is only costing you £20 a year.

Also the zero % platform provider "iweb" I'm using also put up there account opening charge earlier this year (luckily I opened an account when it was only £25). Now this needs to be factored in too.

If you have high transfer out/closure fees, you may want to reconsider transferring out. But if you're planning to invest long term then consider the long term maths - in the example above even a 0.2% platform fee over 5 years is £100 - if you're planning a 15 year investment then this could still work for you.

Anyone else had a nightmare experience in transferring from one ISA broker to another?

jimjames

I'm also transferring my ISAs to iWeb. One from Cofunds and the others from Fidelity.

I set the process in motion in late March for Cofunds and the transfer completed last week so it sounds like I've been lucky.

The transfer from Fidelity has partially completed - the cash balance has moved across but the funds that were being re-registered haven't yet.

tarq_2

I want to shift my ISA from iDealing, but to date have a problem getting any response from iDealing regarding a cash withdrawal.

I've been trying to change my bank details with them, have sent the necessary docs. nearly a month ago, but to date has not been done.

Has anyone had any joy getting money out of them recently?

They don't answer emails & have no telephone number to contact, very poor service!

Vortigern

I'm also moving to iWeb. Transferred as cash from HL quite quickly and without incident. Haven't yet started on Fidelity(via Cavendish) or Charles Stanley Direct.

I believe Fidelity allows transfers as stock free of charge. I hope this also applies to Cavendish.

As far as I can see CSD will charge £10+VAT for a stock transfer. Has anybody any experience of this?

colsten

sjrben wrote: »

if it's not resolved soon I will complain to the FCA.

There is lots of room for improvement for S&S ISA transfers but as a retail investor, you can't complain to the FCA. Or should I say you can try to complain to them and they'll just point you at the FOS, which is the official place to go to if your complaint to your provider has not been resolved to your satisfaction within 8 weeks of formally complaining to the provider.

sjrben wrote: »

This process is not like switching bank accounts - perhaps some regulation is needed here?

You are right, transferring S&S ISAs is massively more complex than switching a current account. Some (eventually self-imposed) industry guidelines, as they exist for cash ISA transfers, could certainly help in smoothing the S&S ISA transfer process but transferring cash ISAs is easy peasy and nothing like an S&S ISA transfer. It will be very difficult to write up transfer rules for the more exotic investments people might have in their ISAs, and for things like dividend payments that were earned when the investment was recorded with the old S&S ISA provider. But perhaps some rules could be agreed for the transfer of simpler stuff. Having said this, the simpler stuff seems to transfer quite quickly, anyway, in my limited experience with S&S ISA transfers.

sjrben wrote: »

Maybe a campaign for Martin to take up?

The S in MSE stands for savings - rather different from investments, as you no doubt know. Whilst I don't doubt for a minute that Martin Lewis has his investments sorted, I doubt he would want to get involved in investments as it is a very different subject altogether from what his website normally covers. Also, there are many many money and savings issues that affect lots more people than the few of us who want to change their S&S ISA provider. But by all means, contact Martin directly (PM / Twitter) to see whether he feels he can help (I don't think he has time to read the MSE forum).

eskbanker

colsten wrote: »

The S in MSE stands for savings - rather different from investments, as you no doubt know.

What does the S in ISA stand for?!