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New HL fee structure from 01/03/26
Comments
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They will sell your funds before transferring them if you request that. Alternatively, you can do an in specie transfer where the fund holdings themselves are transferred without selling them.
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It's unlikely that you could transfer proprietary HL funds in specie to anyone
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That would be my view, too.
Once, I even had trouble transferring a particular Unit Trust/OIEC holding despite having contacted the “receiving” platform to confirm they could accept it. Exactly the same fund, the difference was the “class” of unit. Mine were, I think S class whereas the receiving company could only offer a different class.
It was easy enough for me to sort out - sell the units at HL and buy them back from cash after the transfer went through. But it was a bit of a pain in the …. and it’s one of the things I do worry a bit about if I decide to move my SIPP.
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I contacted Interactive Investor, as I have four funds that I hold with HL, that are available on II but with a different class. They told me their case handler would let me know if they can convert from one class to another or if the funds would need to be sold and I move cash instead. So I guess I still don't know what will happen!
Until 1st March, I can sell them for free on HL and buy them back on II at £3.99 per fund, so not a big cost in the overall scheme of things. Would be nice if II agree to waive any fees though, so I'll ask them to do that, if a sell/buy is required.
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Likewise, I have in mind carrying out some house-keeping on my HL accounts and tidy up (buy/sell) OIECs before the fees are introduced on the 1st March.
I realise that it’s “only” £1.95 a deal but why pay if you really don’t have to!
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And one other thing which in isolation is not significant but nonetheless I find irksome and that is Dividend re-investment (I only have first hand experience of FTSE companies).
I have never understood why - when no matter what day in the month that a dividend appears in my account as income received - HL only ever seem to carry out dividend re-investments on or around the 11th of the month. At least that’s what happens in my experience.
I have an ISA with AJ Bell. They re-invest dividends normally within a couple of working days. I have no idea what happens with the likes of II, SW or Fidelity.
As I say, a minor issue in the big scheme of things and on its own, not something which would cause me to transfer. But added into all the other changes - perhaps one more reason to do something rather than sitting on my hands.
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The article says that units have to be converted to the share class that the receiving platform can hold:
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I'm sure we've had some reports of low cost providers not wishing to take on the administrative burden of conversion and instead only offering cash transfer for those funds they do not directly support. So it is probably a "should" rather than a "must".
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You can buy them on ii for free if you're prepared to wait for the regular investment window, then cancel the purchase for the next month.
Remember the saying: if it looks too good to be true it almost certainly is.1 -
The link says:
"Say you own a fund on your existing platform, but your new platform only supports that fund in a different share class – perhaps one with discounted fees.
In this case, the holding will need to be converted as part of the transfer process.
The good news is that platforms are obliged to handle this for you so you can still transfer in-specie. It just might take a bit longer."
"Obliged" is stronger than "should". This appears to be the relevant FCA document:
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