Can I cancel a PEP/ISA equity transfer ?

wombat42_2

Late last week I sent to Hargreaves and Lansdown a written authorisation for them to organise a PEP/ISA equity transfer from Legal and General.

Yesterday I got contract notes from Legal and General showing that they had completed the sale two days earlier. Nothing else was included. I would expect them to send a cheque to Hargreaves and Lansdown very shortly and I have already specified which fund the cheque is to go into (Jupiter China).

This is all fine except my timing couldnt have been worse. I have only been out of the market a few days and in that time Jupiter China has rocketed about 15% so far (including 5.7% on the very first day I was out of the market). Also the day i sold they sunk by 5.5% so my sale price was depressed.

I am pretty sure that China Jupiter will well outperform the Legal and General fund in the long run I was in but unfortunately I have taken a huge hit from bad timing.

Is there any way I can wriggle out of the situation by some cancellation option so I could go back to Legal and General for the time being ? They did not include any cancellation info with the contact notes.

dunstonh

cancellation rights only apply to those people who have been professionally advised/recommended to make an investment. So, there is no reason to send you any.

You are warned on any transfer (and the HL site does have the warning) that you will be out of market and will not gain/lose money whilst the transfer occurs.

Liz_the_Whizz

It may not have been possible with the OP's L&G funds, but is it therefore preferable to do a PEP/ISA transfer in the form of stock rather than cash?

Must still be a period where you can't trade, but at least you are still in the market?

wombat42_2

Liz_the_Whizz wrote: »

It may not have been possible with the OP's L&G funds, but is it therefore preferable to do a PEP/ISA transfer in the form of stock rather than cash?

Must still be a period where you can't trade, but at least you are still in the market?

HL told me on the phone that a stock transfer would take a lot longer (about 4 weeks) than a cash transfer and suggested I select cash transfer. I dont pretend to fully understand the diference but I think you are implying that a stock transfer would take longer but have less time out of the market and probably would have been the better option GGRRRRR

Anyway It is just possible that L&G dont allow stock transfers.

dunstonh

re-registration can take longer to deal with the admin and you cannot sell/switch in that period. So, you would have been in the market but not able to switch it.

transfer is quicker but it takes you out of the market for about a week.

wombat42_2

dunstonh wrote: »

re-registration can take longer to deal with the admin and you cannot sell/switch in that period. So, you would have been in the market but not able to switch it.

transfer is quicker but it takes you out of the market for about a week.

Any idea if L&G would have permitted a stock transfer if i had asked for one ? It would have been a good idea because the L&G fund has risen quite a lot as well. Any point in me phoning up HL for a vent ?

dunstonh

Any idea if L&G would have permitted a stock transfer if i had asked for one ?

I havent checked but I do believe re-registration would have been an option as the L&G funds are on the HL platform.

Any point in me phoning up HL for a vent ?

I dont see it doing you any good because they haven't given advice and are not allowed to give advice. They act on your instructions.

wombat42_2

dunstonh wrote: »

I havent checked but I do believe re-registration would have been an option as the L&G funds are on the HL platform.


I dont see it doing you any good because they haven't given advice and are not allowed to give advice. They act on your instructions.

Just been on the blower to HL and a supervisor will listen to the recording of the phone i had about this last week. They didnt offer advice but did give me incomplete info about difference between cash and stock and the geezer did effectively suggest to me to select cash. They just said cash was a lot quicker.

dunstonh

Someone is in for a slapped wrist if they crossed that line between information and advice. "suggesting" an option would be considered advice. The FSA indicated earlier in the year that even giving a nod towards something would be considered advice.

When transferring the same holding between providers, the term is re-registration with ISAs. The term stock-transfer could allow for misunderstanding with transfer which is the term used for transferring the ISA as cash (sell and buy).

wombat42_2

dunstonh wrote: »

Someone is in for a slapped wrist if they crossed that line between information and advice. "suggesting" an option would be considered advice. The FSA indicated earlier in the year that even giving a nod towards something would be considered advice.

When transferring the same holding between providers, the term is re-registration with ISAs. The term stock-transfer could allow for misunderstanding with transfer which is the term used for transferring the ISA as cash (sell and buy).

It was a transfer between L& G Pacific Growth Trust and HL Jupiter China. It was invested with HL Jupiter China yesterday which means it was out of the market for 4 or 5 days.

Apart from this hiccup. I have to say that HL are a very slick operation and are in striking contrast to the usually Neanderthal customer service at L&G.

david78

As you haven't re-invested your cash yet, who's to say being in cash at the moment is a bad thing. The market is just as likely to swing down as up.