AJ BELL Revised charges from October

seacaitch

banjodog wrote: »

Response from YouInvest to my complaints re new SIPP charges :


"We have not taken this decision to change our charges lightly and know that this will affect customers. We believe that these charges are very fair as we have the right to change charges when we believe there has been cross account subsidies (SIPP customers have been offsetting ISA and Dealing Account customers). We have therefore attempted to even out the charging structure. The new fees levied on ISAs and Dealing Accounts are also capped at £30 per annum which is extremely competitive"


.

Does it think its customers are idiots?

Youinvest is replacing a £200 annual cap on fund custody charges with a £1875 annual cap on fund custody charges. This represents a huge increase in "cross account subsidies" not a reduction.

This isn't "even(ing) out the charging structure" but skewing the charges even more heavily towards those customers with funds, increasing cross account subsidies not reducing them.

Algie

seacaitch wrote: »

Does it think its customers are idiots?

Youinvest is replacing a £200 annual cap on fund custody charges with a £1875 annual cap on fund custody charges. This represents a huge increase in "cross account subsidies" not a reduction.

This isn't "even(ing) out the charging structure" but skewing the charges even more heavily towards those customers with funds, increasing cross account subsidies not reducing them.

Agreed. My transfer out is now in progress.

ffacoffipawb

Algie wrote: »

Agreed. My transfer out is now in progress.

Who are you transferring to? Thanks.

Thrugelmir

seacaitch wrote: »

Does it think its customers are idiots?

Youinvest is replacing a £200 annual cap on fund custody charges with a £1875 annual cap on fund custody charges. This represents a huge increase in "cross account subsidies" not a reduction.

This isn't "even(ing) out the charging structure" but skewing the charges even more heavily towards those customers with funds, increasing cross account subsidies not reducing them.

The problem for providers is the loss of income from putting "cash" onto overnight deposit. That's the model that low fees are based on. Expect other providers to follow suit.

Eric_the_half_a_bee

Thrugelmir wrote: »

The problem for providers is the loss of income from putting "cash" onto overnight deposit. That's the model that low fees are based on.

Could you please explain that a bit more?

coyrls

banjodog wrote: »

Response from YouInvest to my complaints re new SIPP charges :


"We have not taken this decision to change our charges lightly and know that this will affect customers. We believe that these charges are very fair as we have the right to change charges when we believe there has been cross account subsidies (SIPP customers have been offsetting ISA and Dealing Account customers). We have therefore attempted to even out the charging structure. The new fees levied on ISAs and Dealing Accounts are also capped at £30 per annum which is extremely competitive"


.

It's interesting that they say SIPP customers have been offsetting ISA and dealing account customers, because in my case my SIPP charges have gone up by 325% while my ISA charges have gone up by a mere 288%. They have to quote a subsidy because there is a clause in their contract that allows them to increase prices to prevent subsidies. I will wait to see what subsidy they quote in my case.

Algie

ffacoffipawb wrote: »

Who are you transferring to? Thanks.

Alliance Trust