Timescale to move from SIPP to drawdown AC with Hargreaves Lansdown?

disgruntled1234

After I sent the secure message earlier, they’ve actioned my TFLS request and the money should be in my bank account shortly.

Possibly a coincidence but I’m not convinced

Nebulous2

I know someone who requested a very modest TFLS on the 8th of December. They've just received an email saying it has been enacted - but no cash has appeared yet.

They could have drawn down in December as usual, but it would have closed their drawdown account, as it would have dropped below £50. They decided to wait and top it up instead. Previous transfers, something they've been doing every few months have been measured several days rather than several weeks. 

In future they are going to work a month ahead - as soon as the drawdown account goes down to twice their drawdown amount they will top it up, rather than waiting until there is only one payment left. 

disgruntled1234

What frustrates me is that if I hadn't sent them a message, I doubt my request would have been actioned.  Seems too coincidental that it would happen on the exact day I chased them.

Albermarle

Out of interest, before the budget, Fidelity also sent out a warning that TFLS payment times were elongated.
This message has disappeared and it states 8 working days, as before.

I took two out in the months before the budget ( not based on the speculation ) and they both took exactly 8 working days. So they seem to have an organised system. 

Pat38493

Have they changed their IT system in some way recently?

Long and unusual delays, followed by a flurry of lots of people  getting their money at the same time, sometimes indicates IT system migrations.

KrullTheSaver

@Pat38493 They changed the look and feel of their app. I don't think they changed the back end yet (see below) - at least, not in any way noticeable to clients.

@Albermarle HL knew what was coming same as everyone (and from last year). They were warning that processing times were "longer than usual" and expected to be around 20 days. About as accurate as the OBR :-).

HL were bought out by a private equity consortium. The last couple of years they've probably been positioning for that. This year the new owners likely want to see some ROI and are reported to have said it requires "substantial investment" in "extensive technology-led transformation".

Mind you, for a lot of folks HL is a reasonably simple experience. Something like Interactive Investor is, well, more "investy" if you're not that familiar with the terroir. But the price for simplicity is high. From Feb 1 II will charge a flat 14.99 for SIPP(+drawdown)+ISA+GIA+JISA(one for each child). At HL's 0.45% fee level break even "only" needs a combined pot of, what? ~330k?

I'm embarrassed to say I should have moved long ago. Thanks for the push, HL!

DT2001

I use HL for my ISAs and to date have provided a good service. I invest in ETFs and ITs so pay £3.75 p.m. which was discounted by 40% for the first 6 months (0.015%).

My experience with Fidelity where I hold my SIPP is similar to Albermarle, TFLS into account in 7 days as I organised the sale of holdings to provide the cash. I will probably take a taxable lump sum before the year end but will check timescales as it is the first. Would like to take it in March for a couple of reasons. Fees are again excellent as just ETFs - £7.50 p.m. (0.03%)

Pat38493

KrullTheSaver said:

@Pat38493 They changed the look and feel of their app. I don't think they changed the back end yet (see below) - at least, not in any way noticeable to clients.

@Albermarle HL knew what was coming same as everyone (and from last year). They were warning that processing times were "longer than usual" and expected to be around 20 days. About as accurate as the OBR :-).

HL were bought out by a private equity consortium. The last couple of years they've probably been positioning for that. This year the new owners likely want to see some ROI and are reported to have said it requires "substantial investment" in "extensive technology-led transformation".

Mind you, for a lot of folks HL is a reasonably simple experience. Something like Interactive Investor is, well, more "investy" if you're not that familiar with the terroir. But the price for simplicity is high. From Feb 1 II will charge a flat 14.99 for SIPP(+drawdown)+ISA+GIA+JISA(one for each child). At HL's 0.45% fee level break even "only" needs a combined pot of, what? ~330k?

I'm embarrassed to say I should have moved long ago. Thanks for the push, HL!

Well that explains it!

Ref the HL charges, you can get it back close to the II charges if you only use certain types of investments like ETF.

I assume that ETFs must be easier to administer and manage for the providers as quite a few of them give you a reduced charge rate if you hold ETFs and shares vs funds.  I am not really sure why this is - as a clueless guess, I would have guessed that ETFs and shares are more difficult to manage as you have to facilitate that they can be traded in real time.

MarkCarnage

My HL experience through 4 separate tranches of drawdown (taking tax free cash only on all occasions) was generally pretty good though it was tedious repeat form filling and risk assessment but that's not of their making. The last one was a little more complex as it involved calculating the residual TFC amount I could take under LTA rules at the time and where I'd taken TFC from two other sources too. Their calc was marginally different from mine but I just accepted it. 
Timescales were pretty good though last one was a year or so ago. The SIPP account has sat on the system with nil balance for over a year now though as it's now all in drawdown account....they do keep it open for outstanding dividends, but almost 2 years on seems a bit much.
I also find them pretty competitive fee wise as my portfolio is largely investment trusts, gilts and one ETF, and I deal pretty infrequently. Total of £245 plus any dealing fees, say £350-400 a year total. Have found customer service to be efficient and knowledgeable when required. 

thingswerentthisbadinmyday

My drawdown in October 2024 took what I considered to be an unacceptable length of time.
I made a formal complaint and even thought at one stage about referring to the Ombudsman.
however, the involvement of a Senior Manager meant that matters were amicably resolved!
I’m not sure if it’s been mentioned above but if your Drawdown is delayed and you have direct shareholdings being moved accross, then watch out for any companies which have paid divis in the intervening period.
In my situation - standing instruction for divi re-investment - I had a couple of companies where the divis weren’t re-invested for me as they were received during the switch period. Of course, this may be something to watch for with other platforms, too.