Trying to transfer SIPP from HL to AJBell

bd10

Hi all,

Quick question if I may: I am in the process of transferring my SIPP from HL to AJBell. HL seems to be dragging their feet. Early in January I opened an account with AJBell and gave them the instruction to transfer my SIPP over. Nothing happened until mid-March when the covid-19 lockdown started. I chased both sides with updates. AJBell responded saying they are waiting to hear from AJBell and HL responded by saying the request of transfer is being dealt with, but no further details. In April I chased again, tried to call HL, no one picks up on the phone line. OK I get it that they are - like many of us - are working in emergency cover mode with most staff working from home and a bare minimum at the dealing desk. Not not being able to get through even on the dealing line, that I found a bit worrisome. I followed up with an email over the platform. The response that followed was I needed to complete a pension transfer out form which needs filling in by hand and has to be posted. An electronic version does not exist and not having a printer at home, that's just brilliant. They emailed me the form, why not send it by post like all the advertisement they also send?
I know these are extraordinary times, but is this HL's normal procedure that they need that form? What peeves me off is: why not email me that form months back when I initiated the request but only now upon the 3rd reminder? Are they having me on or deliberately delay things or am I just a bit unlucky?
Thanks,

Albermarle

If both providers are on the electronic transfer system, then normally you only have to initiate the transfer with the receiving provider ( Aj Bell in this case ) and then it should happen automatically . If it is a cash transfer can be just one or two weeks. An in specie transfer will take longer.
However if one of the providers is not on the electronic system it will slow everything down and the ceding provider may request you to sign a form .
On other threads it has been noted that transfers out of HL are quite slow at the moment. Partly due to Covid issues and it seems quite a lot of people transferring out .

bd10

Thanks. What also worries me is this: I am considering moving my ISA over to IWEB but I get quarterly dividends. If this takes this long I fear my dividend payments may go amiss or not get forwarded. Not sure whether it would be better to wait with the ISA transfer out until life is back to a more normal state.

dunstonh

HL seems to be dragging their feet.

They are not the fastest in our experience.  A couple of weeks longer than the quickest when it comes to cash transfers.   For in-specie transfers then you expect up to 6 months  in some cases (and the delay is rarely the platform).

The response that followed was I needed to complete a pension transfer out form which needs filling in by hand and has to be posted.

That suggests that either its not using the Options transfer system or you are doing an in-specie transfer.

I know these are extraordinary times, but is this HL's normal procedure that they need that form?

We have never needed a form for HL but thats because our platforms/providers use Options.  As long as both sides use Options, it is paperless unless its an in-specie transfer.    Most people do cash transfers.    Both AJ Bell and HL use Options.  So, did you select an in-specie transfer rather than a cash transfer?

Alexland

HL were sitting on a 2 month backlog of totally unprocessed transfer out requests last year and I doubt it has improved given the situation.
In our recent transfers with AJ Bell, including during this period, they seem to be on top of all their work.

Albermarle

Alexland said:

HL were sitting on a 2 month backlog of totally unprocessed transfer out requests last year and I doubt it has improved given the situation.
In our recent transfers with AJ Bell, including during this period, they seem to be on top of all their work.

I know these forums do not represent the wider investing world, but there does seem to be quite a move away from HL in recent months.  If so maybe they will have to eventually react on this 0.45% charge , although maybe the outflow is still peanuts relative to their remaining customer base. 

Alexland

It's probably just these forums as people turn up, determine that HL are expensive for all but a few rare cases and then start transferring out which takes ages. I doubt them dropping the 0.45% fee would make much difference to their customer retention but it would make a big difference to their margins. Provided they can keep attracting new customers with Facebook adverts there isn't much case for them reducing their charges.

badger09

bd10 said:

Thanks. What also worries me is this: I am considering moving my ISA over to IWEB but I get quarterly dividends. If this takes this long I fear my dividend payments may go amiss or not get forwarded. Not sure whether it would be better to wait with the ISA transfer out until life is back to a more normal state.

IWEB are not processing S&S ISA xfers in at the moment, so the question is moot
https://www.iweb-sharedealing.co.uk/share-dealing/transfer-your-existing-investments.asp

bd10

The SIPP transfer I initiated is in-specie. I hold open ended accumulating funds and want to stay invested during the period of transfer. Up to 6 months? oh boy...

As for my ISA with HL, I saw the note in IWEB and wouldn't be requesting a transfer until we are back to some level of normality. In January I decided to use my SIPP as test case to see how a transfer goes before moving my main ISA which is a few times the size of the SIPP. If I were indeed to transfer my ISA over, that would be in specie as well. But if this can easily take 6 months, ouch. I dread the thought, especially because I have regular dividend income coming in.

Looks like it's more painful that expected to make this re-allocation and maybe not even worth the hassle at all to move the ISA: With HL I hold mainly shares and trusts and re-invest the dividend in an open ended fund on a quarterly basis. Lump-sum investments now go straight to IWEB. But if it's this long drawn-out, I might just as well keep the ISA with HL to benefit from the FSCS protection in full and on both accounts.