Transfer Vanguard funds to a fixed fee platform

ColdIron

I contacted CSD and asked them do keep it open, since they had received the transfer request they were happy to do it. There was no way to do it just with the IWeb transfer instruction

It was an ISA and a GIA and thinking even harder about it, it may have been the GIA they kept open so not much use to the OP

masonic

ColdIron said:

I contacted CSD and asked them do keep it open, since they had received the transfer request they were happy to do it. There was no way to do it just with the IWeb transfer instruction

It was an ISA and a GIA and thinking even harder about it, it may have been the GIA they kept open so not much use to the OP

Makes sense. Given the all-or-nothing nature of the iWeb transfer form, if current and previous year subscriptions are to be transferred, the only option would be to ask for an empty account to be kept open for the next tax year, but I'd advise against the OP contacting Vanguard to request this, as what is being done is a bit cheeky and they could become hostile to it if brought to their attention.

Qyburn

Does transferring funds like this count as a "trade" at the Iweb end?
Also, how do they distinguish current from previous years? If you have a pile of one fund, added to over the last few years, how do they decide how much of the current value belong to each year? 

masonic

Qyburn said:

Does transferring funds like this count as a "trade" at the Iweb end?
Also, how do they distinguish current from previous years? If you have a pile of one fund, added to over the last few years, how do they decide how much of the current value belong to each year? 

Transfers are not counted as a trade, but the ceding ISA manager may have a charge per line of stock to carry out the transfer.

Providers are required to track the money/investments derived from current year subscriptions until the end of that tax year in order that they can differentiate between current and previous year money/investments.

dllive

OK, Ive just created a S&S ISA with iWeb!

I notice one of their T&Cs are:

"I apply to subscribe for a Stocks and Shares ISA for the tax year 2022/2023 and each subsequent tax year until further notice. This declaration does not however commit me to make a subscription during this period.". But I can safely ignore this cant I as Ill only be making subscriptions to my Vanguard ISA.

Im gonna do a fairly modest transfer initially (from a previous year's ISA). Only because it makes me slightly nervous transferring such a big amount on the first try.

masonic

dllive said:

OK, Ive just created a S&S ISA with iWeb!

I notice one of their T&Cs are:

"I apply to subscribe for a Stocks and Shares ISA for the tax year 2022/2023 and each subsequent tax year until further notice. This declaration does not however commit me to make a subscription during this period.". But I can safely ignore this cant I as Ill only be making subscriptions to my Vanguard ISA.

Im gonna do a fairly modest transfer initially (from a previous year's ISA). Only because it makes me slightly nervous transferring such a big amount on the first try.

Applying to subscribe is not binding, so you can ignore it as you are not permitted to subscribe to this ISA while you hold a current year S&S ISA elsewhere. It is nice to see that specified in the wording of the declaration, as many people get confused by this point, thinking they are unable to open a new ISA when they have subscribed elsewhere.

AlwaysLearnin

dllive said:

Im gonna do a fairly modest transfer initially (from a previous year's ISA). Only because it makes me slightly nervous transferring such a big amount on the first try.

It's all previous years or nothing I'm afraid.  See the screen shot posted by Masonic on the previous page.

masonic

...though there is nothing to stop a different (e.g. cash) ISA being transferred in as a test - just little to be gained from such an exercise.

dllive

Agh! I hadnt realised I couldnt transfer in partial amounts of previous ISAs. Id assumed I could. Ive been doing this from Hargreaves to Vanguard for years!

Im very recticent about transferring ALL my previous ISAs to iWeb for the following reasons:

1) Ill be over the FSCS investor compensation limit on iWeb. (although, as mentioned earlier in this thread, Im not particularly concerned about this. But it was a nice additional benefit of spreading platform failure risk).

2) Im invested in 9 Vanguard funds. If iWeb doesnt offer the same fund then preseumably Vanguard will sell my fund position and transfer the amount as cash. (which I dont want, I want transfers to be done in-specie). I know that iWeb does support LifeStrategy100, but - when I get a chance tomorrow - Ill see if they offer the other funds.

3) Most importantly: Its such a large amount of money, Im very nervous about transferring it from a known entity (Vanguard) to an unknown entity (iWeb). This wouldnt have been an issue if I could do a partial transfer and 'test the waters' with iWeb.

What are my options? 

1) Have I wasted £100 creating an account with iWeb, or perhaps theres a cooling-off period and I can change my mind and get my £100 back. Then just leave everything with Vanguard (or find a platform that DOES offer partial transfers)

2) Leave my previous ISAs with Vanguard and transfer only my current year's ISA in full. (I have £1k left of this year's allowance. I can max it out next week and then transfer it to iWeb). Then, moving forward, each year transfer that years' ISA to iWeb once Ive maxed it out on Vanguard.

masonic

I would say that Halifax (owner of the iWeb trading name) is a better known entity in the UK than Vanguard. You say that transferring all previous year contributions at Vanguard will mean that you'd be over the FSCS compensation limit, but surely this is already the case. I think you are right not to worry about this.

You should definitely check all of the Vanguard funds are available at iWeb, but I'd be surprised if any are not. Assuming everything you need is available, I see no good reason to abort your original plan of moving the previous year money to iWeb to reduce your plaform fee to almost nothing.

As an aside, 9 Vanguard funds seems like a lot. Are you overcomplicating your asset allocation (especially given you've mentioned LS100 which is already highly diversified)?