Nutmeg pulls plans to allow HTB ISA transfers to LISA

dunstonh

A few months ago I did a telephone customer Q&A with Nutmeg they admitted they didn't know what proportion of their LISA customers were saving for a home or age 60 as they forgot to ask on signup. I pointed out this must make it very hard to understand their future management revenues and they agreed.

It would make complying with MiFID II difficult as well.

However, Nutmeg are haemorrhaging money. They are quite consistent. Since they formed, they have increased their losses annually and are reliant on capital influxes from backers. In my opinion, their model is looking increasingly like one where they "buy" market share as quickly as possible and hope to get a buyer. Their annually increasing losses cannot continue. The losses reported last month were up to 9.3m for 2016 and it has warned it may need more investment. That £30m influx it got from new backers in 2016 isnt going to last long at this rate.

Research by SCM direct expects most UK robo-advisers will go bust prior to acquiring sufficient assets under management.

Alexland

Today I logged into Nutmeg and they presented a new MiFID II additional information capture screen!

asc1991

Yep, I too am very frustrated at this, especially as LISA > LISA transfers aren't that readily available. Does anybody know anyone doing this?

asc1991

peter_333 wrote: »

Hargreaves Lansdown seem to allow both transfer of an existing LISA and transfer of a HTB ISA. I am slightly put off by their £25 transfer or exit fees, but besides that, maybe they fit the bill.

HL do not let you import an external LISA into them. The only company that do that is Skipton. So once you transfer to Skipton you hit a dead end and cannot possibly transfer the LISA out. 0.75% interest is not somewhere that I would particularly like to be stuck...

I have a H2B with Hallifax and a LISA with Nutmeg. I was planning to combine it all in a LISA at the end of this year - plan failed.

peter_333

Yesterday I kicked off the process of transferring my Nutmeg LISA to Skipton. It is a cash LISA with very poor interest (0.75%), but if you want to make use of the LISA and not loose your HTB bonus, it seems like the best option right now.

peter_333

asc1991 wrote: »

I have a H2B with Hallifax and a LISA with Nutmeg. I was planning to combine it all in a LISA at the end of this year - plan failed.

Exactly the same situation for me. Halifax HTB and Nutmeg LISA. Such a pain!

asc1991

So I've just gotten off the phone with Nutmeg and Hargreaves Lansdown and - guess what!

You CAN transfer a lifetime ISA from Nutmeg to a lifetime ISA with HL.

The reason HL don't have this on their website is because you can only do this with Nutmeg > HL. So if you have a LISA with anybody else, you cannot transfer to HL.

So I plan to transfer my Nutmeg LISA to a HL LISA and then my Halifax H2B to the same HL LISA.

HOORAH!