HL Transfer (Out)

mlmoneysaver

Hi, would appreciate if anyone knows the answer to this one. I have searched the MSE forums and looked through the HL T&Cs.

I have decided to use a local IFA for my investing and want to transfer my S&S ISAs (from three tax years, 2 were cash transferred to S&S, the other setup in 07/08 as S&S). I currently only have £1000 invested in a fund with the rest sitting as cash awaiting trading instructions.

The IFA I had a meeting with uses the CoFunds platform though I haven't definitely decided which IFA to go with yet.

HL T&Cs: http://www.h-l.co.uk/home/terms.hl
Point 15 seems to be relevant, part of which is quoted below:

"If you exercise your right to cancel the Vantage Account the underlying investments can either be sold or transferred out of HL Nominees name into either your own name or another nominee. There may be a charge for effecting these transfers (please see the Terms & Conditions for details)."

The problem is I can't find the Terms & Conditions it refers to or what the charges might be. Does anyone know if I can transfer out and what the charges are?

Also, if I can do this I need to agree fees/commission arrangements with the IFA. Is there anything I should watch out for when agreeing how fees or commission are taken? (e.g. recommended average amount, min. max. etc.)

dunstonh

The problem is I can't find the Terms & Conditions it refers to or what the charges might be. Does anyone know if I can transfer out and what the charges are?

Most places make no charge on transfer out. However, some funds can do so individually so they may just be covering their back.

Also, if I can do this I need to agree fees/commission arrangements with the IFA. Is there anything I should watch out for when agreeing how fees or commission are taken? (e.g. recommended average amount, min. max. etc.)

Cofunds is a great platform. Its the biggest independent platform. So provider is fine.

As for IFA fees, the typical maximum is 3% commission, the average is 1.8%. The problem you have is that you only have £1000 so I doubt you are going to get any discount unless the IFA handles other parts of you business.

cheerfulcat

mlmoneysaver wrote: »

The problem is I can't find the Terms & Conditions it refers to or what the charges might be. Does anyone know if I can transfer out and what the charges are?

You can certainly transfer out. I can't find the information in the T&Cs either, but I know that they used to charge ( through the nose! ) for transfers out of their ISA. This Moneyextra table suggests that they still do, though the charge shown there is lower than I remember it.

It's probably best just to 'phone them and ask - 0117 900 9000.

mlmoneysaver

dunstonh wrote: »

Most places make no charge on transfer out. However, some funds can do so individually so they may just be covering their back.

Cofunds is a great platform. Its the biggest independent platform. So provider is fine.

As for IFA fees, the typical maximum is 3% commission, the average is 1.8%. The problem you have is that you only have £1000 so I doubt you are going to get any discount unless the IFA handles other parts of you business.

Thank-you for your response, it's good to know that the Cofunds platform is respected.

I actually have just under £14K to transfer and invest immediately (13K is sitting in cash awaiting investment by me with HL). I will also be investing £7.2K for the 08/09 tax year (in the next few months) so total is closer to £21K - does this change the picture with regards discount/bargaining position from my point-of-view? I obviously want to be working with an IFA who values my custom (I imagine total amount to invest is a strong factor in this decision).

mlmoneysaver

cheerfulcat wrote: »

You can certainly transfer out. I can't find the information in the T&Cs either, but I know that they used to charge ( through the nose! ) for transfers out of their ISA. This Moneyextra table suggests that they still do, though the charge shown there is lower than I remember it.

It's probably best just to 'phone them and ask - 0117 900 9000.

Thank-you for your response. I have now called HL, the position is:

1) Transfer of cash held in Vantage S&S ISA is free of charge (this is cash awaiting investment). A transfer form is required from the new provider.

2) Transfer of funds (unit trusts/OEICs) is £20+VAT per holding. They will re-register to the new provider on instruction from them.

It is possible to sell the holding first and transfer the lot as cash (thus avoiding the charge) but obviously I have to want to sell the holding in the first place.

In both cases, the ISA is maintained, i.e. I won't have lost the previous years' allowances.

earlgrey_3

Seems to be in their terms document, available on-line as Online_Application_Terms.pdf:

"SECTION C: Additional terms to be read by clients investing in the Vantage PEP and Vantage ISA...

31.0 Withdrawals, terminations and transfers
31.1 Withdrawals from the Vantage Account require written notice or by any such manner that We may permit from time to time.
31.2 Upon receipt of Your written instruction and within the time stipulated by You (which may not be less than 30 days) all or part of an Account, or all or part of the investments held and proceeds arising from those investments, shall be transferred or paid to You or another manager. Whilst normally We will carry out the transfer within 30 days, occasionally it may take longer to complete due to factors beyond Our control.
Transfers will take place in the form of cash. Transfers of stock may be allowed subject to Our discretion for which We reserve the right to charge £20 (+VAT) per holding."

cheerfulcat

Your eyes are better than mine, earlgrey, and your patience clearly greater.