Vanguard Sipp

dharm999

If you intend to have your employer pay into your SIPP, Vanguard don’t allow employer contributions, at the moment, so could be a problem, if that’s relevant

Secret2ndAccount

I recently tried to transfer some cash from a S&S ISA to a Vanguard S&S ISA. They wouldn't make the transfer. The only incoming transfer they would accept was Vanguard funds, in specie. So my only option would have been been to buy a Vanguard fund, transfer it over, then sell it again to convert back to cash. Kinda the opposite of what people normally worry about when transferring accounts. Don't know if they apply the same odd restriction to SIPP transfers but you have to think it's likely.
If it is the case, and you want to transfer over every last penny and close the ii, it could be quite tricky.

sandsy

Secret2ndAccount said:

I recently tried to transfer some cash from a S&S ISA to a Vanguard S&S ISA. They wouldn't make the transfer. The only incoming transfer they would accept was Vanguard funds, in specie. So my only option would have been been to buy a Vanguard fund, transfer it over, then sell it again to convert back to cash. Kinda the opposite of what people normally worry about when transferring accounts. Don't know if they apply the same odd restriction to SIPP transfers but you have to think it's likely.
If it is the case, and you want to transfer over every last penny and close the ii, it could be quite tricky.

Our family never had this issue. We transferred 2 S&S ISAs and 2 junior S&S ISAs to Vanguard a couple of years ago and they all went across as cash.

Albermarle

Transferring into a Vanguard S&S ISA or SIPP, means either transferring Vanguard funds, or cash.

dunstonh

Secret2ndAccount said:

I recently tried to transfer some cash from a S&S ISA to a Vanguard S&S ISA. They wouldn't make the transfer. The only incoming transfer they would accept was Vanguard funds, in specie. So my only option would have been been to buy a Vanguard fund, transfer it over, then sell it again to convert back to cash. Kinda the opposite of what people normally worry about when transferring accounts. 

It is quite logical why they refused it.  Vanguard's product is effectively a platform for its own funds.    It is not a whole of market platform.    

Don't know if they apply the same odd restriction to SIPP transfers but you have to think it's likely.
If it is the case, and you want to transfer over every last penny and close the ii, it could be quite tricky.

Vanguard's pension isnt a SIPP. Despite it being marketed that way sometimes (that is just because SIPPs are fashionable).  It doesnt offer SIPP functionality.    Like the ISA, it only offers Vanguard funds and some SIPP functionality.  It is closer to a personal pension than a SIPP (Vanguard also call it a personal pension).

Effectively, you have whole of market options and restricted options.    There is no point trying to get a restricted option to use whole of market funds.

If it is the case, and you want to transfer over every last penny and close the ii, it could be quite tricky.

You would just do a cash transfer.  That is far easier than in-specie.  The only negative is that you will be out of the market for up to a week (possibly a tad longer with ii and vanguard depending on their pre-funding levels)

ian16527

coyrls said:

I doubt you will be able to do a partial transfer if you have already crystallised, even if you haven't crystallised yet, you may not be able to do a partial transfer from II.

I was thinking about transferring my Fidelity SIPP to Vanguard.
I have crystallised a small amount to drawdown, so I would like to transfer the uncrystalised part to Vanguard.
Is this possible? or wpould you have to transfer both parts?

Albermarle

ian16527 said:

coyrls said:

I doubt you will be able to do a partial transfer if you have already crystallised, even if you haven't crystallised yet, you may not be able to do a partial transfer from II.

I was thinking about transferring my Fidelity SIPP to Vanguard.
I have crystallised a small amount to drawdown, so I would like to transfer the uncrystalised part to Vanguard.
Is this possible? or wpould you have to transfer both parts?

Probably you will only get a definitive answer by asking Vanguard directly.

Secret2ndAccount

dunstonh said:
Secret2ndAccount said:
I recently tried to transfer some CASH from a S&S ISA to a Vanguard S&S ISA. They wouldn't make the transfer. 

It is quite logical why they refused it.  Vanguard's product is effectively a platform for its own funds.    It is not a whole of market platform.    
...
You would just do a cash transfer.  That is far easier than in-specie. 

Please read what I said, not what you thought I said. First you said it was logical to refuse a cash transfer, then you suggested a cash transfer.

dunstonh

Secret2ndAccount said:

dunstonh said:
Secret2ndAccount said:
I recently tried to transfer some CASH from a S&S ISA to a Vanguard S&S ISA. They wouldn't make the transfer. 

It is quite logical why they refused it.  Vanguard's product is effectively a platform for its own funds.    It is not a whole of market platform.    
...
You would just do a cash transfer.  That is far easier than in-specie. 

Please read what I said, not what you thought I said. First you said it was logical to refuse a cash transfer, then you suggested a cash transfer.

Vanguard do not refuse cash transfers.   It appears that they thought you were trying an in-specie transfer.   Either they made a mistake or you did.,

Bravepants

I got this reponse when I asked about a potential cash SIPP transfer to Vanguard:

Vanguard currently pays the Bank of England base rate less 0.25%. This means that with the Bank of England rate at 3.5%, we are currently paying 3.25% interest on cash held, this accrues daily and is paid monthly to your Vanguard account in arrears. You will be able to see any interest under 'Transactions' > 'Cash statement' once its paid.

Please note, however, that Vanguard UK Personal Investor is designed as an investment platform, rather than as a home for cash savings. As such our cash rates are kept under ongoing review. We do offer a range of investment funds that may be suitable for investors with short term investment horizons, or immediate funding needs.

All holdings in your Vanguard account are subject to our 0.15% account fee, and this includes any cash that you hold. The account fee is calculated daily and charged quarterly.

I wonder how much pressure they apply to the customer to invest in one of their funds, or do they drop the interest rate for customers cheeky enough to keep, say,  mid-five figures in cash?