Leaving HL without transfer charges
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gterr
Posts: 555 Forumite
In another discussion here James suggested that a new thread be started to discuss and gather info with a view to persuading HL to allow free transfers to another platform for customers who have been significantly disadvantaged by the change of fee structure.
If HL fail to play ball then an application to the Financial Ombudsman might have more clout if we are all singing from the same songsheet.
If HL fail to play ball then an application to the Financial Ombudsman might have more clout if we are all singing from the same songsheet.
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Here's a copy of Jamesd's post from earlier this morning:
Anyone who does have trouble with HL wanting to charge transfer costs and such if it makes sense for them to leave might find this purported FOS decision of interest:
"Given that Malfesto incurred the pre-existing transfer fee when he transferred his holdings out of F&C, I am of the opinion that he was not 'free to dissolve the contract'. I note the business’ argument that 'freely' does not entail the waiver of all incidental expenses incurred during the exit. However, my view is that 'freely' would entail waiving any financial or practical barriers to exiting the contract. ... Furthermore, the FSA's finalised guidance 'Unfair contract terms: improving standards in consumer contracts' of January 2012, which has also been considered by both Malfesto and F&C, states that 'we would not regard consumers as being free to dissolve the contract if the terms did not provide that any exit charges would be waived to remove financial barriers to exiting the contract'. In my opinion, the use of the words ‘any exit charges’ implies that incidental expenses incurred in any event upon exit of the agreement, whether in the form of closure fees, ‘in specie’ or ‘cash’ transfer fees are not excluded. ...
I believe the imposition of the transfer fee on each Investment Trust has caused a significant imbalance to the detriment of Malfesto."
While it's not published at the FOS site, apparently it's FOS reference is 1398-5749/GS/IV26.
In the same discussion over there there's "I took a similar case to the FOS in late 2011 going into 2012 relating to a refusal by Hargreaves Lansdown to waive exit fees. Hargreaves Lansdown assured me that the refusal to waive exit fees was 'in keeping with their terms and conditions and the regulations laid down by the FSA'. Sound familiar? The FOS didn't agree with that HL assessment and my complaint was upheld and HL were deemed to have acted unfairly."
I suggest that anyone who is having trouble with HL works with others in a new topic here to gather appropriate references and responses to make life easier for all and help the FOS decide on all of the cases at the same time. Though it'd be really nice if HL made it unnecessary.0 -
As I understand it cash transfers remain fee free for a bit longer, so (apart from being uninvested for a few days) is there any reason for us not to simply switch all funds into cash and then move the cash and then re-invest with the new provider?IANAL etc.0
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As I understand it cash transfers remain fee free for a bit longer, so (apart from being uninvested for a few days) is there any reason for us not to simply switch all funds into cash and then move the cash and then re-invest with the new provider?
That is what I am doing. Funds were put into Sell Mode yesterday
I am receiving some divs Jan 31st so waiting for them to come in and then I will transfer, so I will be out of the market for a good few weeks, but nevermind.
I am also not sure what I am going to do about the pending loyalty bonus, I don't want to keep my account open, so will ask them to close it when transferred and they can keep the rest of the loyalty bonus.0 -
Aren't you all being a bit premature?
HL haven't announced the full details of the changes - they come out on 1st March with a calculator to work out the new charges. Not all companies have announced their changes.
The Times today has an article about HL starting a price war.
I'd wait for things to settle - why the rush? You've got plenty of time before you need to do anything.0 -
As I understand it cash transfers remain fee free for a bit longer, so (apart from being uninvested for a few days) is there any reason for us not to simply switch all funds into cash and then move the cash and then re-invest with the new provider?
Well, there's the problem of being out of the market, the problem of dealing charges to buy back into the funds (depending on which platform you move to) and the problem of bid-offer spreads or dilution levies on some funds. I also have one fund that is soft-closed.
For these reasons I would very much prefer to transfer funds in specie, but this will cost my husband and me several hundred pounds to achieve unless the transfer charges are waived.0 -
Aren't you all being a bit premature?
HL haven't announced the full details of the changes - they come out on 1st March with a calculator to work out the new charges. Not all companies have announced their changes.
The Times today has an article about HL starting a price war.
I'd wait for things to settle - why the rush? You've got plenty of time before you need to do anything.
HLs announcement isn't going to start a price war unless they drastically lower their changes as they are currently not competitive at the charges they've set.
There are very few companies (although yes, there are some) that haven't announced charges yet. Don't forget, they need to be in place by April. No-one would be silly enough to leave it until a week before.
I am not moving for another month and am moving around my portfolio anyway so it seems a good time to prepare (if you don't mind being out of the market, and at my amount, doesn't really matter).0 -
I intend to sort myself out in March, ie: once my full ISA allowance for this tax year has been used up.
Personally, the thing I need to check out with new companies is purchase charges. I'm currently set up regularly investing into 9 funds, in transferring that might become 8, as one is soft closed, so that's essentially 100 purchases per year from £10,000. If a company charges £2 per purchase that's effectively 2%, so fund purchase charges are going to have a significant part to play in me choosing a provider.IANAL etc.0 -
Aren't you all being a bit premature?
HL haven't announced the full details of the changes - they come out on 1st March with a calculator to work out the new charges. Not all companies have announced their changes.
The Times today has an article about HL starting a price war.
I'd wait for things to settle - why the rush? You've got plenty of time before you need to do anything.
HL have announced their prices to the extent that most people need to know them when other alternatives charge 0.25% not the 0.45% that HL charge.
The quote of a "price war" was based on HL press releases and bears no reality to the truth when HL as the highest priced player isn't in any position to start a price war with others charging less.
Be very wary about believing everything you read in the papers when it may be selective reporting or repeating the company line.
Someone who will go from paying £24 pa to £1750 pa in charges from HL will find talk of a price war rather surprising.Remember the saying: if it looks too good to be true it almost certainly is.0 -
Well, there's the problem of being out of the market, the problem of dealing charges to buy back into the funds (depending on which platform you move to) and the problem of bid-offer spreads or dilution levies on some funds. I also have one fund that is soft-closed.
For these reasons I would very much prefer to transfer funds in specie, but this will cost my husband and me several hundred pounds to achieve unless the transfer charges are waived.
Transfers in specie have been charged for some time so it may be unlikely to waive those fees as they were already known about.
Fees for cash transfers are different as they do not charge at present.Remember the saying: if it looks too good to be true it almost certainly is.0 -
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