Beware AJ Bell dragging their feet on SIPP and S&S ISA transfer causing massive interest loss

hoc

AJ Bell took 21 days to transfer out my S&S ISA which was cash only.

AJ Bell has still not transferred out the cash in my SIPP 13 days after the shares have been transferred out.

AJ Bell stop paying interest upon receipt of the transfer out request. This is clear, it is in the terms: https://www.ajbell.co.uk/sites/default/files/AJBell_Interest_rates_we_pay_on_cash.pdf

What was not clear and nowhere I could find explained is all cash is only transferred after all shares have been transferred. Reserving a small amount would be understandable to cover some last minute fees. The problem is AJ Bell hold the entire balance which can be hundreds of thousands for free. Because they don't have to pay interest they take their time.

GeoffTF

hoc said:

AJ Bell took 21 days to transfer out my S&S ISA which was cash only.

AJ Bell has still not transferred out the cash in my SIPP 13 days after the shares have been transferred out.

AJ Bell stop paying interest upon receipt of the transfer out request. This is clear, it is in the terms: https://www.ajbell.co.uk/sites/default/files/AJBell_Interest_rates_we_pay_on_cash.pdf

What was not clear and nowhere I could find explained is all cash is only transferred after all shares have been transferred. Reserving a small amount would be understandable to cover some last minute fees. The problem is AJ Bell hold the entire balance which can be hundreds of thousands for free. Because they don't have to pay interest they take their time.

Why are you holding cash in a S&S ISA?

RogerPensionGuy

GeoffTF said:

hoc said:

AJ Bell took 21 days to transfer out my S&S ISA which was cash only.

AJ Bell has still not transferred out the cash in my SIPP 13 days after the shares have been transferred out.

AJ Bell stop paying interest upon receipt of the transfer out request. This is clear, it is in the terms: https://www.ajbell.co.uk/sites/default/files/AJBell_Interest_rates_we_pay_on_cash.pdf

What was not clear and nowhere I could find explained is all cash is only transferred after all shares have been transferred. Reserving a small amount would be understandable to cover some last minute fees. The problem is AJ Bell hold the entire balance which can be hundreds of thousands for free. Because they don't have to pay interest they take their time.

Why are you holding cash in a S&S ISA?

Maybe to allow transfer or selling units at a price liked by the ISA holder.

Or maybe getting reasonable interest on cash in the ISA. 

With interest at circa 5.2% I can fully understand why people keep cash is S&S ISAs. 

badger09

GeoffTF said:

hoc said:

AJ Bell took 21 days to transfer out my S&S ISA which was cash only.

AJ Bell has still not transferred out the cash in my SIPP 13 days after the shares have been transferred out.

AJ Bell stop paying interest upon receipt of the transfer out request. This is clear, it is in the terms: https://www.ajbell.co.uk/sites/default/files/AJBell_Interest_rates_we_pay_on_cash.pdf

What was not clear and nowhere I could find explained is all cash is only transferred after all shares have been transferred. Reserving a small amount would be understandable to cover some last minute fees. The problem is AJ Bell hold the entire balance which can be hundreds of thousands for free. Because they don't have to pay interest they take their time.

Why are you holding cash in a S&S ISA?

Perhaps because @hoc thought it would be quicker than an in specie xfer, or because he wanted to rebalance his portfolio, or because new provider doesn’t offer the same investments, or …….

parchedpeas

Vanguard also dreadful at this. Looks like an area ripe for some form of regulation, as there's nothing to make them go any quicker.

GeoffTF

RogerPensionGuy said:

GeoffTF said:

hoc said:

AJ Bell took 21 days to transfer out my S&S ISA which was cash only.

AJ Bell has still not transferred out the cash in my SIPP 13 days after the shares have been transferred out.

AJ Bell stop paying interest upon receipt of the transfer out request. This is clear, it is in the terms: https://www.ajbell.co.uk/sites/default/files/AJBell_Interest_rates_we_pay_on_cash.pdf

What was not clear and nowhere I could find explained is all cash is only transferred after all shares have been transferred. Reserving a small amount would be understandable to cover some last minute fees. The problem is AJ Bell hold the entire balance which can be hundreds of thousands for free. Because they don't have to pay interest they take their time.

Why are you holding cash in a S&S ISA?

Maybe to allow transfer or selling units at a price liked by the ISA holder.

Or maybe getting reasonable interest on cash in the ISA. 

With interest at circa 5.2% I can fully understand why people keep cash is S&S ISAs. 

He could have bought a money market fund. He was not getting any interest on cash (let alone 5.2%), which is the whole point of his complaint.

GeoffTF

badger09 said:

GeoffTF said:

hoc said:

AJ Bell took 21 days to transfer out my S&S ISA which was cash only.

AJ Bell has still not transferred out the cash in my SIPP 13 days after the shares have been transferred out.

AJ Bell stop paying interest upon receipt of the transfer out request. This is clear, it is in the terms: https://www.ajbell.co.uk/sites/default/files/AJBell_Interest_rates_we_pay_on_cash.pdf

What was not clear and nowhere I could find explained is all cash is only transferred after all shares have been transferred. Reserving a small amount would be understandable to cover some last minute fees. The problem is AJ Bell hold the entire balance which can be hundreds of thousands for free. Because they don't have to pay interest they take their time.

Why are you holding cash in a S&S ISA?

Perhaps because @hoc thought it would be quicker than an in specie xfer, or because he wanted to rebalance his portfolio, or because new provider doesn’t offer the same investments, or …….

In specie transfer can now be done automatically for Crest registered stocks. My in specie transfer from iWeb to HL took only 10 days over Christmas and the New Year. Rebalancing your portfolio into cash that pays no interest is not a good move. If the new provider does not offer the same investments, buy new ones that are acceptable.

masonic

It is standard practice to transfer all lines of stock first, and only when it is confirmed that has completed, move over residual cash.

When performing an in specie transfer, it is therefore a good idea to be as fully invested as possible. If a large cash balance needs to be held, then it may be worthwhile contacting the receiving provider (who is responsible for managing the transfer process) and requesting an interim payment, as they may be able to arrange this on request.

As we've seen from other threads SIPP transfer timescales can sometimes be measured in years.