HSBC and Trading212 / Evestor

scotti88

Hello, My bank contacted me today and said they noticed transfers to Trading212. I used Evestor last tax year. Both have good returns so far.

They said all was ok but that they "do not like" transfers to "these types of accounts" an said it could effect future credit with them. When pressed why, they just said "we view it as a risk".

HSBC offer stocks and shares ISAs themselves. Has anyone heard of HSBC (or any other bank) saying this before?

I understand that putting money into stocks and shares is always a risk, but only an affordable amount and "spare" money goes into it, and as mentioned, HSBC offer the exact same service. Any thoughts? Thanks

eskbanker

scotti88 said:

Hello, My bank contacted me today and said they noticed transfers to Trading212. I used Evestor last tax year. Both have good returns so far.

They said all was ok but that they "do not like" transfers to "these types of accounts" an said it could effect future credit with them. When pressed why, they just said "we view it as a risk".

What specifically do they mean by "these types of accounts"?

My guess would be that they're referring to Trading212 specifically rather than S&S ISAs in general - as you say, S&S ISAs are mainstream products that they offer themselves, but Trading212 in particular offer multiple products, including some that undoubtedly are riskier, such as their CFD offering, so perhaps that's what HSBC are referring to?  I haven't heard of them contacting customers in this way before though, which does seem over the top....

scotti88

Thanks for your reply.
That was what I was thinking, due to them offering CFD (which I stay well clear of). I couldnt get any further information out of him other than "These types of accounts". I may switch back to Evestor if this would be less of an issue for them.

Just to be clear, they contacted me about a Credit Card application I made, but the issue why they rung regarding the CC was due to Trading212. Still seemed a bit over the top as the credit card was with a small limit simply for purchases over £100 to benefit from the added CC protection.

Albermarle

It seems from other threads and my own limited experience that HSBC /First Direct are more sensitive in these situations than other banks .
In some circumstances this could be a good thing, but can also be a bit OTT.

kaMelo

Albermarle said:

It seems from other threads and my own limited experience that HSBC /First Direct are more sensitive in these situations than other banks .
In some circumstances this could be a good thing, but can also be a bit OTT.

If you read some of the decisions upheld by the FOS regarding people who claimed the bank was liable for them falling for investment scams, I think HSBC/First Direct are being positively light touch about it.


If the FOS carry on the way they are then expect you will have to write a letter to the bank, in your own handwriting, confirming you carried out your own due diligence on the investments you wish to make, a tick box to confirm everything you've done and sent in an envelope sealed with thumbprint in your own blood.
But then again maybe they still won't consider that an effective enough warning.