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  • FIRST POST
    • mskadu
    • By mskadu 8th Nov 18, 9:48 PM
    • 50Posts
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    mskadu
    Evestor S&S ISA transfer out charges?
    • #1
    • 8th Nov 18, 9:48 PM
    Evestor S&S ISA transfer out charges? 8th Nov 18 at 9:48 PM
    I am presently in the process of transferring out a S&S ISA from Evestor. My target provider for back to me saying 'We have been informed by Evestor that they charge £100.00 per line of stock being transferred out but no charge for a cash transfer'.

    This is odd since the Stock and Shares ISA article on mse says the transfer out fees are zero? I have asked Evestor the question and thought I'd post here while I await the response.

    Thoughts?
Page 1
    • Alexland
    • By Alexland 8th Nov 18, 10:12 PM
    • 3,602 Posts
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    Alexland
    • #2
    • 8th Nov 18, 10:12 PM
    • #2
    • 8th Nov 18, 10:12 PM
    Never tried them but it looks like they provide restricted advice to invest in an ISA provided by Gaudi Regulated Services Limited. It's possible the fee is from Gaudi not Evestor themselves.

    Still as part of their initial advice and ongoing service they should have made you aware of any fees that apply to the product. I agree this fee is not mentioned on their fees or terms page so unless it was provided separately you may have grounds to complain. Or just transfer as cash.

    Alex
    • dunstonh
    • By dunstonh 8th Nov 18, 10:45 PM
    • 95,773 Posts
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    dunstonh
    • #3
    • 8th Nov 18, 10:45 PM
    • #3
    • 8th Nov 18, 10:45 PM
    This is odd since the Stock and Shares ISA article on mse says the transfer out fees are zero?
    MSE does not have the best record when it comes to talking about T&C on investment products. They kept a pension article up for 8 years after the provider they used in their examples stopped offering it.

    But technically it is correct. A cash transfer is nil cost. You are not asking for a cash transfer. You are asking for fund/asset re-registration (sometimes called an in-specie transfer or in-specie reregistration).

    Having looked at evestors web page, their disclosures on charges (theirs and their fake alternatives) leaves a lot to be desired. I couldn't see any reference to a re-reg fee. So, you would probably have strong grounds for complaint seeing as its meant to be an online service and terms are published online. Maybe worth getting a screen print for your record before they spot it and change it.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Aylesbury Duck
    • By Aylesbury Duck 9th Nov 18, 11:14 AM
    • 2,400 Posts
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    Aylesbury Duck
    • #4
    • 9th Nov 18, 11:14 AM
    • #4
    • 9th Nov 18, 11:14 AM
    I transferred a modest sum out of evestor a few months ago and had the same advice. I transferred it as cash to my new provider to avoid the charges.
    • mskadu
    • By mskadu 9th Nov 18, 1:54 PM
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    mskadu
    • #5
    • 9th Nov 18, 1:54 PM
    • #5
    • 9th Nov 18, 1:54 PM
    Thanks all. Here's what I received from them in response to my email

    This information has only come to light which is why we have informed you of it before proceeding with the transfer. We will be adding it to our website and documents.

    Is it even legal for them to be charging me?
    • mskadu
    • By mskadu 9th Nov 18, 2:01 PM
    • 50 Posts
    • 6 Thanks
    mskadu
    • #6
    • 9th Nov 18, 2:01 PM
    • #6
    • 9th Nov 18, 2:01 PM
    And when clarifications were sought I got back this

    Our third party administration team have determined this fee. We have not received an in specie transfer request before so we were recently notified of this charge. There are no fees to transfer out in cash which is the usual process we use when a customer wishes to transfer out.

    Looks like I have no choice left but to cash transfer. What I don't like is that they didn't make the fact that fees might be involved in transfer out.

    In any case, lesson for those who are to come down the same path.

    I have also chosen to transfer as cash. ��
    • Economic
    • By Economic 9th Nov 18, 2:11 PM
    • 350 Posts
    • 367 Thanks
    Economic
    • #7
    • 9th Nov 18, 2:11 PM
    • #7
    • 9th Nov 18, 2:11 PM
    And when clarifications were sought I got back this

    Our third party administration team have determined this fee. We have not received an in specie transfer request before so we were recently notified of this charge. There are no fees to transfer out in cash which is the usual process we use when a customer wishes to transfer out.

    Looks like I have no choice left but to cash transfer. What I don't like is that they didn't make the fact that fees might be involved in transfer out.

    In any case, lesson for those who are to come down the same path.

    I have also chosen to transfer as cash. ��
    Originally posted by mskadu
    A fee of £100 per line of stock is excessive and if you were not informed of the fee when you signed up then that is very poor practice. Have you checked the transfer fees for your new provider?
    • Alexland
    • By Alexland 9th Nov 18, 6:28 PM
    • 3,602 Posts
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    Alexland
    • #8
    • 9th Nov 18, 6:28 PM
    • #8
    • 9th Nov 18, 6:28 PM
    Our third party administration team have determined this fee. We have not received an in specie transfer request before so we were recently notified of this charge. There are no fees to transfer out in cash which is the usual process we use when a customer wishes to transfer out.
    Originally posted by mskadu
    As suspected this sounds like a Gaudi fee but what kind of advisor (and they describe it as 'advice' on their website) puts a customer into a product without even looking at the fee schedule? These robo advisors are a pretty hopeless bunch.

    I had similar when I was transferring an ISA from Nutmeg to Vanguard. For some reason Vanguard asked for Nutmeg's Vanguard ETFs to be transferred in-specie (had requested a cash transfer) and Nutmeg came up with a new £25 charge per ETF which was not on their website.

    Alex
    Last edited by Alexland; 09-11-2018 at 6:34 PM.
    • Alexland
    • By Alexland 9th Nov 18, 6:40 PM
    • 3,602 Posts
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    Alexland
    • #9
    • 9th Nov 18, 6:40 PM
    • #9
    • 9th Nov 18, 6:40 PM
    Interestingly Gaudi only charge £15 per line of stock in their Jarvis X-O SIPP so maybe Jarvis are better at negotiation than Evestor who didn't even seem to be aware that someone might reasonably ask for this.

    http://www.x-o.co.uk/gaudi-sipp.asp

    Alex
    • dunstonh
    • By dunstonh 9th Nov 18, 8:11 PM
    • 95,773 Posts
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    dunstonh
    Most platforms dont charge a penny for in-specie transfers.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Economic
    • By Economic 9th Nov 18, 8:24 PM
    • 350 Posts
    • 367 Thanks
    Economic
    Most platforms dont charge a penny for in-specie transfers.
    Originally posted by dunstonh
    Yes, it is the transfer fees when exiting that one should always check!
    • Alexland
    • By Alexland 9th Nov 18, 8:27 PM
    • 3,602 Posts
    • 2,931 Thanks
    Alexland
    Most platforms dont charge a penny for in-specie transfers.
    Originally posted by dunstonh
    Maybe not in the advisor wrap market but it is very common in the DIY market where costs are more unbundled.

    Alex
    • dunstonh
    • By dunstonh 9th Nov 18, 10:30 PM
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    • 63,468 Thanks
    dunstonh
    Maybe not in the advisor wrap market but it is very common in the DIY market where costs are more unbundled.

    Alex
    Originally posted by Alexland
    The FCA doesn't like barriers to exit and the adviser platforms take it more seriously than some of the DIY ones. The FCA has also recently criticised the volume of charges that exist with a number of DIY platforms. It is surprising after all this time just how adviser platforms have moved to be almost entirely mono charge (i.e. one charge) but the DIY side often has long lists of charges. You would have thought the DIY side would looked to have simplified it in the same way.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Alexland
    • By Alexland 10th Nov 18, 9:21 AM
    • 3,602 Posts
    • 2,931 Thanks
    Alexland
    The FCA doesn't like barriers to exit and the adviser platforms take it more seriously than some of the DIY ones. The FCA has also recently criticised the volume of charges that exist with a number of DIY platforms. It is surprising after all this time just how adviser platforms have moved to be almost entirely mono charge (i.e. one charge) but the DIY side often has long lists of charges. You would have thought the DIY side would looked to have simplified it in the same way.
    Originally posted by dunstonh
    I agree and myself emailed the FCA platform study team on this issue in August 2017 but my comment remains that it is still very common in the DIY market.

    It is a difficult balance because DIY customers can be advantaged by unbundling some fees such as trade costs if they are 'buy and hold' investors. They can also benefit from lower costs in the accumulation period if the cost of operating the drawdown payroll is not included.

    I am a fan of unbundling in DIY products provided it doesn't damage competition. Sure it's more complicated but isn't that the point of doing it yourself to have the chance of getting a better result?

    Alex
    Last edited by Alexland; 10-11-2018 at 9:29 AM.
    • dunstonh
    • By dunstonh 10th Nov 18, 10:56 AM
    • 95,773 Posts
    • 63,468 Thanks
    dunstonh
    I am a fan of unbundling in DIY products provided it doesn't damage competition. Sure it's more complicated but isn't that the point of doing it yourself to have the chance of getting a better result?
    I like the fact choice is available. If everyone was mono-charged there would be losers. Although there would also be winners as some people enter into more advanced offerings without knowing what they are doing. You will never satisfy everyone as to where do you draw the line at simplifying for consumer protection vs disadvantaging more advanced individuals.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • evestor
    I am presently in the process of transferring out a S&S ISA from Evestor. My target provider for back to me saying 'We have been informed by Evestor that they charge £100.00 per line of stock being transferred out but no charge for a cash transfer'.

    This is odd since the Stock and Shares ISA article on mse says the transfer out fees are zero? I have asked Evestor the question and thought I'd post here while I await the response.

    Thoughts?
    Originally posted by mskadu
    Hi there,

    We donít routinely offer in-specie transfers because our portfolio contains a fixed asset allocation, however, if a customer specifically requests an in-specie transfer we will try to accommodate their needs. Our product provider may issue a charge for this service.

    As youíve mentioned, we donít charge our customers to carry out a routine cash transfer into or out of our products. These involve selling down the assets held within their evestor portfolio and transferring that cash to the new provider, so they can invest it in whatís been chosen or recommended. This is often preferable for our customers as a way to avoid paying the charges that can be associated with an in-specie transfer.

    We really appreciate your feedback on including this information about in-specie transfers (and the associated costs) in our terms and conditions or on our fees page. We are going to look at including this to avoid any confusion for our investors in the future.

    If you do have any further questions or concerns, do get in touch with the team again through our webchat Ė they will be happy to help.

    The evestor team
    Verified Company
    I am a verified representative of evestor. MSE has given permission for me to post in response to queries about the company so that I can help solve issues. You can see my name on the Verified Companies list. I am not allowed to tout for business at all. If you believe I am please report it to forumteam@moneysavingexpert.com This does NOT imply any form of approval of my company or its products by MSE.
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