Share this page:
Stay connected:
Welcome to the Citywire Money Forums, where members share investment ideas and discuss everything to do with their money.

You'll need to log in or set up an account to start new discussions or reply to existing ones. See you inside!

Notification

Icon
Error

Trapped by Interactive Investor
MV
Posted: 26 March 2015 11:54:11(UTC)
#1

Joined: 30/09/2013(UTC)
Posts: 3

Thanks: 5 times
Was thanked: 5 time(s) in 2 post(s)
I transferred from Hargreaves Lansdown to Interactive Investor last year when I realised how much HL would charge under their latest fee structure. The process took 7 months and involved lots of frustration with some funds going missing and both sides blaming each other for the long delays.

I'm now trying to transfer a Cash ISA from HSBC to II. HSBC tell me they transferred the cash on 10th March but II claim that they have not received it. What really frustrates me is not the unreasonably long delay, or even the fact that both sides are blaming each other again, but the fact that II don't seem willing to sort out the mess immediately by getting on the phone to HSBC to find out what has happened to my missing cash. II have an extremely unhappy customer but don't seem interested.

For this and other reasons I'm regretting my choice of Interactive Investor. Does anybody have any better suggestions for a reasonably large portfolio?

The problem of course is that I'm reluctant to face the long transfer process again, let alone start another wrangle with II over their exit fees. I feel trapped!

3 users thanked MV for this post.
Rickie Tivy on 28/03/2015(UTC), Nigel Harris on 29/03/2015(UTC), stu winston on 28/09/2015(UTC)
Alan Selwood
Posted: 26 March 2015 15:38:39(UTC)
#2

Joined: 17/12/2011(UTC)
Posts: 2,441

Thanks: 465 times
Was thanked: 3702 time(s) in 1418 post(s)
You could try involving Jessica at The Daily Telegraph (Saturday Money section), or tell II and HSBC that if they don't locate and transfer the cash within 7 days you will be involving the regulator and the national newspapers.

Another angle is to disclose the situation on Facebook, because big firms do tend to monitor adverse comments there, and any firm that does not get on the phone to you about your post within 10 minutes is not going to be worth doing business with anyway. If you look at the situation from a business perspective, it would be cheaper for them to simply GIVE you the money than to incur widespread adverse publicity.
7 users thanked Alan Selwood for this post.
MV on 27/03/2015(UTC), DGL on 27/03/2015(UTC), Law Man on 27/03/2015(UTC), Rickie Tivy on 28/03/2015(UTC), Guest on 29/03/2015(UTC), Nigel Harris on 29/03/2015(UTC), Bellabeck on 31/03/2016(UTC)
mark senior
Posted: 26 March 2015 17:59:43(UTC)
#3

Joined: 20/09/2010(UTC)
Posts: 108

Thanks: 13 times
Was thanked: 43 time(s) in 29 post(s)
As I know to my personal cost Interactive are currently struggling with the migration of Motley Fool customers.

The story of each party blaming the other is VERY common.

In the end you should write to both transferring parties and ask them to escalate your case to an official complaint (you have to do this, as if you do not the Ombudsman will not interfere until you have done)
I believe they then have 2-3 weeks to resolve the issue after which you are free to raise complaints against both parties with the Ombudsman.
2 users thanked mark senior for this post.
MV on 27/03/2015(UTC), Nigel Harris on 29/03/2015(UTC)
JohnnyOilShareHolder
Posted: 26 March 2015 21:17:48(UTC)
#4

Joined: 18/11/2009(UTC)
Posts: 12

Was thanked: 2 time(s) in 1 post(s)






If you hold overseas stocks in your SIPP, take care before transferring it. Some months ago, I transferred my SIPP from Hargreaves Lansdown to Interactive Investor. Before doing so, I asked many questions, and was told transferring US stocks was no problem, but they couldn't accept Canadian ones. Unfortunately, they didn't tell me that they could not process W-8BEN forms on my behalf (see below) even though most professional investment brokers seem to offer this service if overseas stocks are allowed.

Not knowing the situation, I sold my single Canadian stock and completed the transfer. More recently, after receiving some tax-related correspondence from the US IRS (tax office) I found that Interactive Investor doesn't provide the W-8BEN form service. This is where you fill in a form and the broker then submits this to the US IRS, to stop US withholding tax being taken. As I said, unfortunately Interactive Investor didn't tell me about not providing this service. It is also difficult to arrange directly, as the broker holding nominee shares has to provide this information, after getting the form from the beneficial owner (vis., in this case me).

If this can't be done, I face being taxed in the US, even though my stocks are in a tax-free wrapper. Interactive Investor claimed they are "considering offering this service in future", but they have given me no date for this! Take care, therefore, if you hold overseas stocks in your SIPP. It's easier than you think to hold US stocks, as many large international corporations and ETFs do not have shares on the London Market.
2 users thanked JohnnyOilShareHolder for this post.
MV on 27/03/2015(UTC), Nigel Harris on 29/03/2015(UTC)
Peter Young
Posted: 27 March 2015 12:26:52(UTC)
#5

Joined: 11/12/2006(UTC)
Posts: 18

Thanks: 1 times
Was thanked: 8 time(s) in 5 post(s)
My wife and I both did the same as MV last year and transferred ISA and trading portfolios from HL to II in order to make a significant saving on costs. Whilst the original transfer took much longer than we would have liked, with some holdings disappearing from HL but not appearing in II for some days, the handling of our accounts since then has been trouble free.

I'm sure you've already complained loudly to both parties - do it again until they sort things out. It seems a pity to have to incur the costs of moving once again if it can be avoided.

If you do decide to take the plunge and move I can recommend Alliance Trust, who handle my SIPP. They too are cost-effective for large portfolios and their systems work satisfactorily.


1 user thanked Peter Young for this post.
MV on 27/03/2015(UTC)
Gleaner
Posted: 27 March 2015 17:53:47(UTC)
#6

Joined: 15/07/2013(UTC)
Posts: 9

Thanks: 12 times
Was thanked: 13 time(s) in 8 post(s)
Twitter may be another means. Many companies monitor Twitter and seem to move heaven and earth to avoid adverse public comments.
I also moved from h & l, but went to Jarvis, www.x-o.co.uk. Theirs is a pretty basic service, but it is the cheapest at £5.95 a deal and no other fees, (until you leave). SIPPs are available, but it depends on the amounts involved and needs careful research.
I also enjoy reading Jessica, she has a way of getting things done, but not instantly.
1 user thanked Gleaner for this post.
Nigel Harris on 29/03/2015(UTC)
dd
Posted: 27 March 2015 17:55:14(UTC)
#7

Joined: 15/09/2010(UTC)
Posts: 239

Thanks: 122 times
Was thanked: 49 time(s) in 37 post(s)
When writing a letter of complaint, send a copy (and make sure it is visible that you are sending a copy) to someone else within that organisation. The reason for this is that the person receiving the original will be reluctant to admit that your letter was lost or delayed for any reason. Normally they will not deny having received it. Both letters must say cc: (the other person).
It is a very simple technique, but from experience I have found that it works well in a number of circumstances, both private companies and government departments.
I can understand that it may be more difficult to achieve when dealing with an on-line platform but even so, with a bit of research, you can usually find someone who should be taking an interest in customer service. For example, I sent to on-line complaints department plus top man of the local branch of the same bank and it worked. I won. Try it!
2 users thanked dd for this post.
Alan Selwood on 27/03/2015(UTC), Nigel Harris on 29/03/2015(UTC)
Law Man
Posted: 27 March 2015 18:45:18(UTC)
#8

Joined: 29/04/2014(UTC)
Posts: 214

Thanks: 69 times
Was thanked: 376 time(s) in 154 post(s)
The above comments have sensible solutions.

Standing back, I note more than one investor has transferred an ISA away from Hargreaves Lansdown due to the HL costs.

0.45% on OEIC funds, with no absolute limit, is expensive. However, for shares, investment trusts, ETFs and bonds, there is a maximum charge of £45 p.a. In my view this is very good value given that HL's service is so good.
3 users thanked Law Man for this post.
Nigel Harris on 29/03/2015(UTC), Guest on 30/03/2015(UTC), Vince. on 31/08/2015(UTC)
Linda Summers
Posted: 27 March 2015 18:49:16(UTC)
#9

Joined: 27/03/2015(UTC)
Posts: 2

Was thanked: 2 time(s) in 1 post(s)
MV;26854 wrote:
I transferred from Hargreaves Lansdown to Interactive Investor last year when I realised how much HL would charge under their latest fee structure. The process took 7 months and involved lots of frustration with some funds going missing and both sides blaming each other for the long delays.

I'm now trying to transfer a Cash ISA from HSBC to II. HSBC tell me they transferred the cash on 10th March but II claim that they have not received it. What really frustrates me is not the unreasonably long delay, or even the fact that both sides are blaming each other again, but the fact that II don't seem willing to sort out the mess immediately by getting on the phone to HSBC to find out what has happened to my missing cash. II have an extremely unhappy customer but don't seem interested.

For this and other reasons I'm regretting my choice of Interactive Investor. Does anybody have any better suggestions for a reasonably large portfolio?

The problem of course is that I'm reluctant to face the long transfer process again, let alone start another wrangle with II over their exit fees. I feel trapped!



Dear MV
I am sorry that you have had this experience. If you are happy to do so, please send your contact details to linda.summers@iii.co.uk and I will work with our customer service team to resolve the issue you raise above.
Kind regards
Linda
2 users thanked Linda Summers for this post.
stu winston on 28/09/2015(UTC), Bellabeck on 31/03/2016(UTC)
spike
Posted: 27 March 2015 20:06:55(UTC)
#10

Joined: 19/01/2012(UTC)
Posts: 18

Thanks: 8 times
Was thanked: 13 time(s) in 10 post(s)
Doesn't anyone negotiate charges by HL anymore? Try it...you may be surprised by the threat to move your investments elsewhere, particularly if as you say you have a reasonably large investment! Worked for me and you can't beat HL for quality of service!
2 users thanked spike for this post.
martyn of sheepy on 28/03/2015(UTC), Nigel Harris on 29/03/2015(UTC)
Rob Morrison
Posted: 27 March 2015 20:22:55(UTC)
#13

Joined: 07/04/2010(UTC)
Posts: 10

Thanks: 1 times
I transferred my portfolio from Stocktrade to ii, with no problems, whatsoever.

Money in & out of ii, is easy, in my experience. Just transferred money out this week & was in my bank acc, instantly!
Rob
dd
Posted: 27 March 2015 21:28:19(UTC)
#14

Joined: 15/09/2010(UTC)
Posts: 239

Thanks: 122 times
Was thanked: 49 time(s) in 37 post(s)
Delay vs No delay:
Is it anything to do with the investments being/not being in an ISA? - Just a thought.
doug83
Posted: 28 March 2015 00:15:28(UTC)
#15

Joined: 22/12/2011(UTC)
Posts: 2

Agree with Spike,H-l are happy to negotiate a lower fee if you threaten to leave with a reasonably sized portfolio and their service is excellent especially if you are going into drawdown.
Gator_al
Posted: 28 March 2015 00:42:48(UTC)
#16

Joined: 19/12/2011(UTC)
Posts: 1

I experienced similar issues when transferring my Sipp from Bestinvest and ISA from Fidelity. In all it took 9 months.

Since completion 2 months ago, it has all been plain sailing in my operating of the account.

It did require a LOT of chasing on my part, they rarely responded to the secure online messaging and I found phoning (all sides) the only slow but effective resolution.

ii have a good product (no worse than others) maybe they just mishandled the volume of transfer requests due to the low cost model? Your / my complaints are not the first on this subject on the internet.

I would struggle to recommend ii because of the poor customer service, however I am consoling myself that I am now saving fees due to the fixed fee v % fee elsewhere (based on my OIECS / shares / IT split).

I documented my correspondence and have written to them asking for their records of their dealings with the two other parties. If details do not match up then I intend on pursuing it further.

I can only suggest that you keep pursuing what is rightfully yours / keep records / and complain. The least you / we deserve is an apology.
michaelC
Posted: 28 March 2015 08:36:52(UTC)
#17

Joined: 06/02/2012(UTC)
Posts: 2

I also transferred from HL to ii together with my wife.The transfer took about 6 to 8 months to complete with several funds going missing for a prolonged period and wrong funds appearing in my portfolio before being removed without any notice.The transfer is now complete and all dividends correctly paid. However I have missed a lot of fund rebates that should have been paid when the funds were neither in HL or ii. I am trying to get these rebates refunded and would be interested if anyone else is experiencing the same issue.
martyn of sheepy
Posted: 28 March 2015 18:10:36(UTC)
#18

Joined: 02/12/2012(UTC)
Posts: 26

Thanks: 28 times
Was thanked: 12 time(s) in 4 post(s)
Spike, and any others who have negotiated with and stayed with HL and reduced their fees, please tell us how you did it. I, along with many others, I 'm sure would appreciate your experience with them. Thanks.
graham tilston
Posted: 28 March 2015 22:18:12(UTC)
#19

Joined: 03/05/2014(UTC)
Posts: 10

Thanks: 2 times
Was thanked: 1 time(s) in 1 post(s)
I have a very substantial portfolio with HL management fees are £2000 a year. Hl have told me that the fee to transfer to another provider will be nearly £800 a rip off. I approached Interactive Investor if it was possible to have a personal contact (not a manager) because I find it easier if you can speak to the same person each time? I was told that they would get back to me. Since then I have emailed Interactive investor twice and still not received a reply
peter mcque
Posted: 29 March 2015 08:39:09(UTC)
#20

Joined: 03/03/2013(UTC)
Posts: 7

Was thanked: 1 time(s) in 1 post(s)
e=MV;26854]I transferred from Hargreaves Lansdown to Interactive Investor last year when I realised how much HL would charge under their latest fee structure. The process took 7 months and involved lots of frustration with some funds going missing and both sides blaming each other for the long delays.

I'm now trying to transfer a Cash ISA from HSBC to II. HSBC tell me they transferred the cash on 10th March but II claim that they have not received it. What really frustrates me is not the unreasonably long delay, or even the fact that both sides are blaming each other again, but the fact that II don't seem willing to sort out the mess immediately by getting on the phone to HSBC to find out what has happened to my missing cash. II have an extremely unhappy customer but don't seem interested.

For this and other reasons I'm regretting my choice of Interactive Investor. Does anybody have any better suggestions for a reasonably large portfolio?

The problem of course is that I'm reluctant to face the long transfer process again, let alone start another wrangle with II over their exit fees. I feel trapped!

[/quote]
Sorry you are having such problems, I transferred from Stockbridge and Skandia to iii about 2 years ago and have not regretted it.
Their charges are very low and the platform allows dealing in funds and shares easily.

I did have some problems with a transfer which had a paper certificate.

Fund of Funds
Posted: 29 March 2015 10:46:55(UTC)
#21

Joined: 11/07/2012(UTC)
Posts: 26

Thanks: 2 times
Was thanked: 13 time(s) in 10 post(s)
To Spike and others with concerns about HL charges.

If you have a reasonable amount with HL including your wife then just write to them ( a letter) and ask for a reduction in all your accounts for you and your wife or you will go elsewhere. It worked for me, they were reduced to competitors fee levels, so I stayed.

They do provide a first class service and excellent website facilities
Kerry Walker
Posted: 29 March 2015 11:42:19(UTC)
#22

Joined: 13/02/2012(UTC)
Posts: 2

Was thanked: 2 time(s) in 2 post(s)
I've recently completed a move of ISAs from H-L to iii. As seems the norm, this took far longer than you'd expect (6 weeks)....and three of the individual funds got lost in the "system" and I had to progress chase with both H-L and iii before everything was sorted out.

I can only agree with those who've recommended formal escalation/complaint/bad publicity, but iii are one of the few providers with fixed, easy-to-understand fees that get more attractive as a portfolio gets bigger. So I'd advise you to persevere. iii do deliver good quality of service, but seem under pressure at the moment with the volume of business coming their way!

I also had to deal with the US shareholding/tax paperwork...it was too much trouble so now I don't have holdings that are affected. It's something I'm prepared to live with in order to keep portfolio maintenance charges minimal.
1 user thanked Kerry Walker for this post.
Bellabeck on 31/03/2016(UTC)
4 Pages123Next page»
+ Reply to discussion

Markets

Other markets