HSBC Invest Direct Plus

philip1988

I have shares in Sun Life Financial Services of Canada which I acquired some years ago as a result of holding a financial product of the companies since the 1970's. Dividends were initially paid into a Merill Lynch cash account and in recent years HSBC's Invest Direct Plus Account.

I have recently received a letter from HSBC to say that from March 2016 they will be charging an account fee of £10.50 a quarter. I have been given 3 options:
a. remain with HSBC
b. transfer to another provider
c. have shares but back into a share certificate (if available)


With dividends of approx £150 per year these newly introduced fees will take a large chunk out of my dividends. I have no other stocks and shares within Invest Direct and have no other share dealing accounts with other providers.


My query is based on my situation is there a cheaper provider or should I ask for a share certificate if available.

gt94sss2

Shares in Sun Life Financial Services of Canada appear to be traded on both the US and Canadian stock markets - where are yours located? I presume the US as I didn't think HSBC UK offered Canadian shares.

However, overseas shares can be a real pain - as a UK resident, you do not want a foreign share certificate - there is very little you can do with them easily and you would face charges for cashing in foreign dividends.

There are many other brokers who offer US shares in UK accounts - you could look at them and see if transferring is a viable option/cheaper than HSBC or take this opportunity to sell your shareholding..

Regards
Sunil

philip1988

Thanks gt94sss2. I live in the UK. I obtained the shares when Sun Life demutualised.

I assume that the shares located in Canada as the share value statements get converted from Canadian Dollars to pounds sterling. From what you say I assume that going down the broker route is the better option.

gt94sss2

Yes, I would stick with a broker if you want to retain your shareholding.

Most brokers charge fees for overseas accounts and/or commission on the f/x conversions. I believe HSBC was/is unusual in not charging annual fees and also putting f/x conversions through at their wholesale/interbank rate.

You may want to keep an eye on this thread as well

Regards
Sunil

philip1988

Thanks for your reply and link Sunil

Pincher

£10.50 inc VAT quarterly, £42 a year.

The first payment is due on 31st March 2016, in arears, but the charging period starts from 1st January 2016.

Been away for a bit, just caught up with the notification letter, which is dated November 2015, no actual date. Very relaxed attitude to time for a bank.

I always assumed no dealing account charges was simply a perk of HSBC Premier, as compensation for keeping £50k+ with HSBC.

Now that the Loyalty Cash ISA interest is tanking, the HSBC Premier account is becoming no better than a regular account.

I think there is scope for HSBC to refund the £42, if you do enough business with them.

The only worthwhile perk is now the Annual Worldwide Travel Insurance.


Could have stayed with Selftrade, virtually the same charges.

Gaffy

Also it doesn't help that the InvestDirect website design is permanently stuck in the mid 1990's and is by far the worst share dealing account to use. HSBC just don't seem to want to upgrade it.

oz0707

I've just started a new thread due to the same problem - probably should of looked here first although no recommendations yet!

Doshwaster

Is it just the Invest Direct Plus accounts which are going to be charged for or it the "non-Plus" Invest Direct ones too?

Most of my shares are with HL but I have a few on Invest Direct which I've never bothered moving but I would if there was a monthly fee coming.

I agree that the website is terrible.